Academy Sports and Outdoors (NASDAQ:ASO) Releases Quarterly Earnings Results, Beats Expectations By $0.24 EPS

Academy Sports and Outdoors (NASDAQ:ASO - Get Free Report) released its quarterly earnings data on Wednesday, September 9th. The company reported $2.31 EPS for the quarter, topping analysts' consensus estimates of $2.07 by $0.24, FiscalAI reports. The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.65 billion. Academy Sports and Outdoors had a return on equity of 18.36% and a net margin of 6.39%.The business's revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.94 EPS. Academy Sports and Outdoors updated its FY 2026 guidance to 6.500-6.900 EPS.

Here are the key takeaways from Academy Sports and Outdoors' conference call:

• Neutral Sentiment: Second-quarter sales rose 3% to approximately $1.6 billion, while comparable sales declined 0.4%. E-commerce remained a key strength, increasing 12.8%, but traffic from households earning under $50,000 fell at a high-single-digit rate as inflation pressured discretionary spending.
• Positive Sentiment: Academy reaffirmed full-year sales guidance of $6.23 billion–$6.36 billion, or 3%–5% growth, with comparable sales ranging from flat to up 2%. It raised gross-margin guidance to 35.5%–36.0% and EPS guidance to $6.05–$6.45, supported by a lower share count.
• Positive Sentiment: New stores, digital growth, and loyalty initiatives are gaining traction: comparable newer stores rose mid-single digits, dot-com sales increased 14% year to date, and Academy credit-card spending climbed about 20% in the quarter. The company now expects more than 16 million myAcademy members by year-end.
• Positive Sentiment: Management is reinvesting tariff-refund proceeds into lower prices, labor, and marketing, which it says has stimulated demand and improved value perception. Newness initiatives—including Hoka, expanded Ariat and Chubbies assortments, suppressors, and Redfield firearms—are intended to drive traffic and broaden the customer base.
• Negative Sentiment: Management expects the consumer backdrop to remain challenging, particularly for lower-income households, and anticipates a more promotional holiday period. Tariff refunds provided a substantial but nonrecurring second-quarter gross-margin benefit, while elevated fuel and freight costs and pricing investments are expected to pressure margins in the second half.

Academy Sports and Outdoors Stock Performance

Academy Sports and Outdoors stock traded up $1.74 on Wednesday, reaching $52.18. 1,063,938 shares of the stock were exchanged, compared to its average volume of 1,569,369. The stock has a market cap of $3.21 billion, a PE ratio of 8.67, a PEG ratio of 0.76 and a beta of 1.02. The firm has a fifty day moving average price of $47.35 and a two-hundred day moving average price of $51.47. Academy Sports and Outdoors has a twelve month low of $41.29 and a twelve month high of $62.44. The company has a current ratio of 1.74, a quick ratio of 0.35 and a debt-to-equity ratio of 0.23.

Academy Sports and Outdoors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 16th will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Wednesday, September 16th. Academy Sports and Outdoors's payout ratio is presently 10.00%.

Analyst Ratings Changes

A number of research firms recently commented on ASO. Barclays boosted their target price on shares of Academy Sports and Outdoors from $50.00 to $53.00 and gave the stock an "equal weight" rating in a report on Thursday, September 10th. JPMorgan Chase & Co. dropped their target price on shares of Academy Sports and Outdoors from $60.00 to $59.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 10th. The Goldman Sachs Group cut their target price on shares of Academy Sports and Outdoors from $67.00 to $60.00 and set a "buy" rating on the stock in a research note on Wednesday, June 10th. Wells Fargo & Company raised Academy Sports and Outdoors from a "hold" rating to a "buy" rating in a research report on Thursday, September 10th. Finally, Telsey Advisory Group lifted their price target on Academy Sports and Outdoors from $60.00 to $63.00 and gave the company an "outperform" rating in a report on Thursday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $58.29.

Insider Activity

In related news, Director Brian Marley sold 10,432 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $53.25, for a total value of $555,504.00. Following the completion of the sale, the director owned 32,607 shares of the company's stock, valued at $1,736,322.75. This trade represents a 24.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 4.08% of the stock is owned by corporate insiders.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc is a sporting goods and outdoor recreation retailer based in Katy, Texas. The company operates stores and an e-commerce platform serving customers across the southern, southeastern and midwestern United States.

Its merchandise includes sporting goods and equipment, outdoor and adventure products, hunting and fishing gear, athletic and casual footwear, apparel, and related accessories. Academy serves a broad customer base through a value-oriented assortment of national brands and private-label products.

The company traces its history to 1938, when it was founded in San Antonio, Texas, as a small tire shop.