First Quarter Sales Growth of 6.7%; Comparable Sales Growth of 2.9%
eCommerce Sales Increase of 17.4%
New Stores Comp Positive High Single Digits
First Quarter Diluted GAAP EPS of
Opened Two New Stores in
Company Raises Guidance Based on First Quarter Performance
“We were pleased with the continued improvement in our results in Q1, with total sales up 6.7%, driven by increases in both traffic and average ticket,” said
| First Quarter Operating Results ($ in millions, except per share data) | Thirteen Weeks Ended | Change | |||||||||
| % | |||||||||||
| Net sales | $ | 1,442.0 | $ | 1,351.4 | 6.7 | % | |||||
| Comparable sales | 2.9 | % | (3.7 | ) | % | ||||||
| Income before income tax | $ | 68.9 | $ | 63.0 | 9.4 | % | |||||
| Net income | $ | 52.7 | $ | 46.1 | 14.3 | % | |||||
| Adjusted net income (1) | $ | 61.2 | $ | 51.6 | 18.6 | % | |||||
| Earnings per common share, diluted | $ | 0.80 | $ | 0.68 | 17.6 | % | |||||
| Adjusted earnings per common share, diluted (1) | $ | 0.93 | $ | 0.76 | 22.4 | % | |||||
| (1) Adjusted net income and adjusted earnings per common share (EPS), diluted are non-GAAP measures. See “Non-GAAP Measures” and “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. | |||||||||||
| Thirteen Weeks Ended | Change | ||||||||
| Balance Sheet ($ in millions) | % | ||||||||
| Cash and cash equivalents | $ | 337.8 | $ | 285.1 | 18.5 | % | |||
| Merchandise inventories, net (1) | $ | 1,654.4 | $ | 1,560.0 | 6.1 | % | |||
| Long-term debt, net | $ | 480.3 | $ | 482.2 | (0.4 | ) | % | ||
| (1) As of | |||||||||
| Thirteen Weeks Ended | Change | ||||||||
| Capital Allocation ($ in millions) | % | ||||||||
| Share repurchases (1) | $ | 99.3 | $ | 99.9 | (0.6 | ) | % | ||
| Dividends paid | $ | 9.6 | $ | 8.7 | 10.3 | % | |||
| (1) Includes excise tax fees of | |||||||||
Subsequent to the end of the first quarter, Academy announced that its Board of Directors on
New Store Openings
Academy opened two new stores during the first quarter, bringing its total to 324 locations. The Company plans to open three stores during the second quarter, with the remaining 15-20 to be opened in the second half of fiscal 2026.
Academy Store Footprint Update
| Time Frame | Total stores open at beginning of the period | Number of stores opened during the period | Number of stores closed during the period | Total stores open at end of period |
| 1st Quarter 2025 | 298 | 5 | — | 303 |
| FY 2025 | 298 | 24 | — | 322 |
| 1st Quarter 2026 | 322 | 2 | — | 324 |
| Time Frame | Total gross square feet open at beginning of the period (1) | Gross square feet for stores opened during the period (1) | Gross square feet for stores closed during the period | Total gross square feet at the end of the period (1) |
| 1st Quarter 2025 | 20,604 | 275 | 20,879 | |
| FY 2025 | 20,604 | 1,321 | — | 21,925 |
| 1st Quarter 2026 | 21,925 | 112 | — | 22,037 |
| (1) Figures in thousands | ||||
2026 Outlook
“The first quarter got off to a good start, and we delivered a 6.7% increase in sales, a 14.2% increase in free cash flow, a 14.3% increase in net income, and a 17.6% increase in GAAP EPS,” said
Academy is providing the following updated guidance for fiscal 2026 (i.e., year ending
| Original Fiscal 2026 Guidance | Updated Fiscal 2026 Guidance | change (at midpoint) | |||||||||||||||||||||
| (in millions, except per share amounts) | Low end | High end | Low end | High end | 2025 Actuals | vs. 2025 | |||||||||||||||||
| Net sales | $ | 6,175 | $ | 6,355 | $ | 6,230 | $ | 6,355 | $ | 6,053 | 4.0 | % | |||||||||||
| Sales Growth | 2.0 | % | 5.0 | % | 3.0 | % | 5.0 | % | 2.0 | % | 100.0 | % | |||||||||||
| Comparable sales (1) | (1.0 | ) | % | 2.0 | % | — | % | 2.0 | % | (1.5 | ) | % | 166.7 | % | |||||||||
| Gross margin rate | 34.5 | % | 35.0 | % | 34.5 | % | 35.0 | % | 34.8 | % | — | % | |||||||||||
| GAAP net income | $ | 380 | $ | 415 | $ | 390 | $ | 415 | $ | 377 | 6.8 | % | |||||||||||
| Adjusted net income (2) | $ | 410 | $ | 445 | $ | 420 | $ | 445 | $ | 393 | 10.1 | % | |||||||||||
| GAAP earnings per common share, diluted | $ | 5.65 | $ | 6.15 | $ | 5.95 | $ | 6.35 | $ | 5.54 | 11.0 | % | |||||||||||
| Adjusted earnings per common share, diluted (2) | $ | 6.10 | $ | 6.60 | $ | 6.40 | $ | 6.80 | $ | 5.78 | 14.2 | % | |||||||||||
| Diluted weighted average common shares | 67 | 67 | 66 | 66 | ~68 | (3.0 | ) | % | |||||||||||||||
| Capital Expenditures | $ | 200 | $ | 240 | $ | 200 | $ | 240 | $ | 213 | 3.3 | % | |||||||||||
| Adjusted free cash flow (2), (3) | $ | 250 | $ | 300 | $ | 250 | $ | 300 | $ | 263 | 4.6 | % | |||||||||||
The earnings per share estimates do not include any potential future share repurchases and assume a tax rate of 22.0% to 23.0%.
(1) We define comparable sales as the percentage of period-over-period net sales increase or decrease, in the aggregate, for stores open after thirteen full fiscal months, as well as for all ecommerce sales.
(2) Adjusted net income, adjusted earnings per common share (EPS), diluted, and adjusted free cash flow are non-GAAP measures. See “Non-GAAP Measures” and “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(3) We have not reconciled guidance for adjusted free cash flow to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and could be significant; therefore, we are unable to provide an estimate of the most closely comparable GAAP measure at this time.
Conference Call Info
Academy will host a conference call today at
| 1-877-407-3982 | ||
| International callers | 1-201-493-6780 | |
| Passcode | 13760700 | |
A replay of the conference call will be available for approximately 30 days on the Company's website.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide “Fun for All” and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.
Non-GAAP Measures
Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles (“GAAP”). The Company believes that the presentation of these non-GAAP measures is useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company’s operating results or measuring performance in the same manner as the Company’s management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended January 31, 2026 (the “Annual Report”), filed on March 17, 2026 and our Quarterly Report for the thirteen weeks ended May 2, 2026 to be filed on June 10, 2026 (“the Quarterly Report”), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC's website at www.sec.gov.
See “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy’s current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as “believe,” “expect,” “anticipate,” “forward,” “ahead,” “opportunities,” “plans,” “priorities,” “goals,” “future,” “short/long term,” “will,” “should,” or the negative version of these words or other comparable words. The forward-looking statements in this press release include, among other things, statements regarding the Company’s fiscal 2026 outlook under the caption “2026 Outlook,” the Company's strategic plans and financial objectives, including the implementation of such plans, the growth of the Company's business and operations, including the opening of new stores and the expansion into new markets, the Company's payment of dividends, including the timing and the amount thereof, share repurchases by the Company, and the Company's expectations regarding its future performance and future financial condition are subject to various risks, uncertainties, assumptions, or changes in circumstances that are all difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, environmental, and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and in higher interest rates, trade policy changes or additional tariffs, geopolitical tensions, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report, under the caption “Part 1A. Risk Factors,” as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
| Investor Contact | Media Contact |
| VP, Investor Relations | VP, Communications |
| 832-739-4102 | 346-823-6615 |
| dan.aldridge@academy.com | meredith.klein@academy.com |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) | |||||||||||||
| Thirteen Weeks Ended | |||||||||||||
| Percentage of Sales (1) | Percentage of Sales (1) | ||||||||||||
| Net sales | $ | 1,442,003 | 100.0 | % | $ | 1,351,409 | 100.0 | % | |||||
| Cost of goods sold | 962,655 | 66.8 | % | 892,540 | 66.0 | % | |||||||
| Gross margin | 479,348 | 33.2 | % | 458,869 | 34.0 | % | |||||||
| Selling, general and administrative expenses | 404,693 | 28.1 | % | 389,604 | 28.8 | % | |||||||
| Operating income | 74,655 | 5.2 | % | 69,265 | 5.1 | % | |||||||
| Interest expense, net | 8,988 | 0.6 | % | 9,044 | 0.7 | % | |||||||
| Other income, net | 3,222 | 0.2 | % | 2,807 | 0.2 | % | |||||||
| Income before income taxes | 68,889 | 4.8 | % | 63,028 | 4.7 | % | |||||||
| Income tax expense | 16,186 | 1.1 | % | 16,944 | 1.3 | % | |||||||
| Net income | $ | 52,703 | 3.7 | % | $ | 46,084 | 3.4 | % | |||||
| Earnings Per Common Share: | |||||||||||||
| Basic | $ | 0.82 | $ | 0.69 | |||||||||
| Diluted | $ | 0.80 | $ | 0.68 | |||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||
| Basic | 64,432 | 67,122 | |||||||||||
| Diluted | 65,945 | 68,170 | |||||||||||
| (1) Column may not add due to rounding | |||||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except per share data) | |||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 337,810 | $ | 330,320 | $ | 285,104 | |||
| Accounts receivable - less allowance for doubtful accounts of | 17,671 | 34,755 | 16,869 | ||||||
| Merchandise inventories, net | 1,654,429 | 1,503,756 | 1,560,035 | ||||||
| Prepaid expenses and other current assets | 93,249 | 82,457 | 59,757 | ||||||
| Assets held for sale | 2,957 | 2,957 | — | ||||||
| Total current assets | 2,106,116 | 1,954,245 | 1,921,765 | ||||||
| PROPERTY AND EQUIPMENT, NET | 602,768 | 584,103 | 551,184 | ||||||
| RIGHT-OF-USE ASSETS | 1,290,110 | 1,234,246 | 1,210,516 | ||||||
| 579,860 | 579,766 | 579,165 | |||||||
| 861,920 | 861,920 | 861,920 | |||||||
| OTHER NONCURRENT ASSETS | 62,826 | 62,756 | 55,873 | ||||||
| Total assets | $ | 5,503,600 | $ | 5,277,036 | $ | 5,180,423 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 826,338 | $ | 637,854 | $ | 849,554 | |||
| Accrued expenses and other current liabilities | 274,857 | 243,908 | 272,362 | ||||||
| Current lease liabilities | 152,001 | 147,491 | 137,979 | ||||||
| Current maturities of long-term debt | 3,000 | 3,000 | 3,000 | ||||||
| Total current liabilities | 1,256,196 | 1,032,253 | 1,262,895 | ||||||
| LONG-TERM DEBT, NET | 480,320 | 480,793 | 482,209 | ||||||
| LONG-TERM LEASE LIABILITIES | 1,315,590 | 1,261,167 | 1,210,095 | ||||||
| DEFERRED TAX LIABILITIES, NET | 299,309 | 300,654 | 255,912 | ||||||
| OTHER LONG-TERM LIABILITIES | 31,219 | 30,792 | 22,080 | ||||||
| Total liabilities | 3,382,634 | 3,105,659 | 3,233,191 | ||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
| STOCKHOLDERS' EQUITY : | |||||||||
| Preferred stock, shares; none issued and outstanding | — | — | — | ||||||
| Common stock, shares; 63,507,116; 64,945,953 and 66,466,377 issued and outstanding as of | 635 | 649 | 662 | ||||||
| Additional paid-in capital | 254,512 | 256,351 | 244,388 | ||||||
| Retained earnings | 1,865,819 | 1,914,377 | 1,702,182 | ||||||
| Stockholders' equity | 2,120,966 | 2,171,377 | 1,947,232 | ||||||
| Total liabilities and stockholders' equity | $ | 5,503,600 | $ | 5,277,036 | $ | 5,180,423 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) | ||||||||
| Thirteen Weeks Ended | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 52,703 | $ | 46,084 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 30,757 | 30,150 | ||||||
| Non-cash lease expense | 3,068 | 12,665 | ||||||
| Equity compensation | 11,100 | 7,542 | ||||||
| Amortization of deferred loan and other costs | 646 | 649 | ||||||
| Deferred income taxes | (1,345 | ) | (903 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 17,084 | (110 | ) | |||||
| Merchandise inventories, net | (150,673 | ) | (251,195 | ) | ||||
| Prepaid expenses and other current assets | (10,793 | ) | 35,863 | |||||
| Other noncurrent assets | (438 | ) | (4,566 | ) | ||||
| Accounts payable | 177,965 | 231,762 | ||||||
| Accrued expenses and other current liabilities | 12,782 | 24,848 | ||||||
| Income taxes payable | 17,323 | 16,322 | ||||||
| Other long-term liabilities | 427 | 8,361 | ||||||
| Net cash provided by operating activities | 160,606 | 157,472 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (38,903 | ) | (50,830 | ) | ||||
| Purchases of intangible assets | (94 | ) | (158 | ) | ||||
| Net cash used in investing activities | (38,997 | ) | (50,988 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of Term Loan | (750 | ) | (750 | ) | ||||
| Repurchase of common stock for retirement | (98,412 | ) | (99,031 | ) | ||||
| Proceeds from exercise of stock options | 715 | 1,516 | ||||||
| Taxes paid related to net share settlement of equity awards | (6,026 | ) | (3,328 | ) | ||||
| Dividends paid | (9,646 | ) | (8,716 | ) | ||||
| Net cash used in financing activities | (114,119 | ) | (110,309 | ) | ||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,490 | (3,825 | ) | |||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 330,320 | 288,929 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 337,810 | $ | 285,104 | ||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Amounts in thousands) |
Adjusted EBIT
We define “Adjusted EBIT” as net income (loss) before interest expense, net, income tax expense and other adjustments included in the table below. We describe these adjustments reconciling net income (loss) to Adjusted EBIT in the following table (amounts in thousands):
| Thirteen Weeks Ended | |||||||
| Net income | $ | 52,703 | $ | 46,084 | |||
| Interest expense, net | 8,988 | 9,044 | |||||
| Income tax expense | 16,186 | 16,944 | |||||
| Equity compensation (a) | 11,100 | 7,542 | |||||
| Adjusted EBIT | $ | 88,977 | $ | 79,614 | |||
| (a) | Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. | ||||||
Adjusted Net Income and Adjusted Earnings Per Common Share
We define “Adjusted Net Income” as net income (loss) plus other adjustments included in the table below, less the tax effect of these adjustments. We define “Adjusted Earnings per Common Share, Basic” as Adjusted Net Income divided by the basic weighted average common shares outstanding during the period and “Adjusted Earnings per Common Share, Diluted” as Adjusted Net Income divided by the diluted weighted average common shares outstanding during the period. We describe these adjustments reconciling net income (loss) to Adjusted Net Income, and Adjusted Earnings Per Common Share in the following table (amounts in thousands, except per share data):
| Thirteen Weeks Ended | |||||||||
| Net income | $ | 52,703 | $ | 46,084 | |||||
| Equity compensation (a) | 11,100 | 7,542 | |||||||
| Tax effects of these adjustments (b) | (2,584 | ) | (2,029 | ) | |||||
| Adjusted Net Income | $ | 61,219 | $ | 51,597 | |||||
| Earnings per common share: | |||||||||
| Basic | $ | 0.82 | $ | 0.69 | |||||
| Diluted | $ | 0.80 | $ | 0.68 | |||||
| Adjusted earnings per common share: | |||||||||
| Basic | $ | 0.95 | $ | 0.77 | |||||
| Diluted | $ | 0.93 | $ | 0.76 | |||||
| Weighted average common shares outstanding: | |||||||||
| Basic | 64,432 | 67,122 | |||||||
| Diluted | 65,945 | 68,170 | |||||||
| (a) | Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. | ||||||||
| (b) | Represents the estimated tax effect of the total adjustments made to arrive at Adjusted Net Income. | ||||||||
Adjusted Net Income and Adjusted Earnings Per Common Share, Diluted, Guidance Reconciliation (amounts in millions, except per share data)
| Low Range* | High Range* | ||||||
| Fiscal Year Ending | Fiscal Year Ending | ||||||
| Net Income | $ | 390 | $ | 415 | |||
| Equity compensation (a) | 30 | 30 | |||||
| Adjusted Net Income | $ | 420 | $ | 445 | |||
| Earnings Per Common Share, Diluted | $ | 5.95 | $ | 6.35 | |||
| Equity compensation (a) | 0.45 | 0.45 | |||||
| Adjusted Earnings Per Common Share, Diluted | $ | 6.40 | $ | 6.80 | |||
| * | Amounts presented have been rounded. | ||||||
| (a) | Adjustments include non-cash charges related to equity-based compensation (as defined above), which may vary from period to period. These amounts are also tax affected. | ||||||
Adjusted Free Cash Flow
We define “Adjusted Free Cash Flow” as net cash provided by (used in) operating activities less net cash used in investing activities. We describe these adjustments reconciling net cash provided by operating activities to adjusted free cash flow in the following table (amounts in thousands):
| Thirteen Weeks Ended | ||||||||
| Net cash provided by operating activities | $ | 160,606 | $ | 157,472 | ||||
| Net cash used in investing activities | (38,997 | ) | (50,988 | ) | ||||
| Adjusted Free Cash Flow | $ | 121,609 | $ | 106,484 | ||||
