Academy Sports and Outdoors, Inc.

What they do

Academy sells outdoor, sports and recreation, apparel, and footwear products through 327 stores, primarily concentrated in the southern United States, plus an omnichannel business that includes buy-online-pickup-in-store (BOPIS) and shipping. Merchandise is sourced from approximately 1,500 vendors, with about 78% of 2025 merchandise sales from national brands such as Nike, Under Armour, adidas, Columbia Sportswear, The North Face, and Yeti, and the remainder from 19 private label brands. No single brand exceeded roughly 12% of 2025 sales, and the average customer visits two to three times per year. The company was founded in 1938 as a Texas family business and is headquartered in Katy, Texas.

Revenue drivers

• Outdoor — Largest category at 31% of 2025 net sales, covering camping, hunting, fishing and related outdoor recreation gear sold through stores and e-commerce.
• Apparel — Second-largest category at 27% of 2025 net sales, spanning national brands and private label apparel across good, better and best price points.
• Sports & Recreation — 22% of 2025 net sales, including team sports, fitness and recreation products localized by store and supported by a year-round event calendar.
• Footwear and e-commerce — Footwear was 20% of 2025 net sales; e-commerce sales grew 12.8% in Q2 fiscal 2026 and leverage BOPIS and shipping fulfillment.

Recent performance

For the second quarter ended August 1, 2026, net sales rose 3.0% to $1,647.3 million, while comparable sales fell 0.4%. Diluted GAAP EPS was $2.17, up 17.3%, and adjusted diluted EPS was $2.31, up 19.1%, including a $0.06 net tariff refund benefit. Year-to-date net sales rose 4.7% to $3,089.3 million with comparable sales up 1.1%, and net income of $190.6 million. Full-year fiscal 2025 revenue was $6.05 billion with net income of $376.8 million, continuing a multi-year decline in annual net income from $671.4 million in 2022. Three new stores opened in the quarter, bringing the total to 327.

Strategy

Management is reinvesting tariff-related benefits into value pricing, adding new brands and categories, and accelerating initiatives across stores, omnichannel and loyalty. The company continues store growth, opening three stores in Q2 fiscal 2026 and planning eleven more in the third quarter, with the remainder in the fourth quarter. Capital is being returned through share repurchases of $182.1 million and dividends of $19.0 million in the first half of fiscal 2026, with a quarterly dividend of $0.15 per share declared in September 2026. Leadership cites market share gains and customer engagement as evidence the strategy is working.

Risks

• Consumer discretionary spending — All sales are generated in the U.S., so results are highly dependent on U.S. consumer discretionary spending, and management noted continued pressure among lower-income households.
• Tariffs and international sourcing — Reliance on internationally manufactured merchandise exposes the company to additional tariffs or changes to existing tariffs, which affect product costs and pricing.
• Competition — The sporting goods and outdoor recreation retail industries are intensely competitive, which could pressure sales, margins and market share.
• Comparable sales softness — Comparable sales were (0.4)% in the second quarter of fiscal 2026, and the company's growth depends partly on new stores rather than existing-store productivity.

Outlook

Management affirmed fiscal 2026 sales guidance and raised EPS guidance, citing confidence in achieving its fiscal 2026 sales and earnings objectives. The company plans eleven new stores in the third quarter and the balance in the fourth quarter of fiscal 2026. Tariff-related benefits are being reinvested into value and new brands, which management expects to support market share gains and customer engagement despite pressured consumer spending.