Academy Sports & Outdoors (ASO) Q2 2027 earnings summary

Executive summary

• Net sales for Q2 2026 reached $1.65 billion, up 3.0% year-over-year, with e-commerce sales growing 12.8–14.1%.

• Gross margin improved to 40.4%, up 440 basis points year-over-year, mainly due to one-time tariff refunds.

• Diluted EPS was $2.17 (+17.3%), adjusted EPS was $2.31 (+19.1%), with a $0.06 EPS benefit from tariff refunds.

• Opened 3 new stores in Q2, with plans for further expansion and a total of 21 new stores opened since the prior year.

• Guidance for FY26 reaffirmed for sales and raised for EPS, supported by strong free cash flow and capital returns.

Financial highlights

• Operating income for Q2 was $246.4 million, up 42.9% year-over-year.

• Comparable sales declined 0.4%, with a 5.3% drop in transactions offset by a 4.9% increase in average ticket.

• Adjusted free cash flow for the first half was $237.6 million, up from $128.1 million year-over-year.

• Inventory per store was down 2.3% in dollars and 5.6% in units year-over-year.

• Cash and cash equivalents at quarter-end were $298.2 million; no borrowings under the $1 billion revolver.

Outlook and guidance

• FY26 net sales guidance: $6.23–$6.36 billion (+3–5% YoY); comp sales flat to +2%.

• Adjusted EPS guidance raised to $6.50–$6.90, up 15.9% at the midpoint year-over-year.

• Gross margin rate expected at 35.5–36.0% for FY26.

• Adjusted free cash flow guidance increased to $300–$350 million.

• Capital expenditures for FY26 projected at $200–$240 million, with 60% allocated to new stores.