In short
- Academy Sports and Outdoors beat estimates. The sporting goods retailer reported first quarter fiscal 2026 net sales of $1.44 billion, up 6.7%, with adjusted earnings of $0.93 a share ahead of the $0.91 Wall Street consensus.
- Comparable sales returned to growth. Same-store sales rose 2.9%, a clear reversal after a stretch of declines, driven by gains in both customer traffic and average ticket.
- Ecommerce accelerated. Online sales jumped 17.4%, outpacing the total business and moving the company closer to its long-range goal of 15% digital penetration.
- Guidance moved up. Management raised the low end of its full-year outlook, declared a $0.15 quarterly dividend, and pointed back to long-range targets of more than $8 billion in sales and $9 in GAAP earnings per share.
- The setup is a turnaround read. A year ago the same quarter showed falling sales and a profit miss, so the swing to growth reframes Academy as a recovery story rather than a discretionary laggard.
What did Academy Sports report for the first quarter?
Academy Sports and Outdoors released its first quarter fiscal 2026 results before the opening bell on Tuesday, June 9, 2026, with a conference call scheduled for 10:00 a.m. Eastern Time. The Texas-based sporting goods and outdoor retailer reported net sales of $1.44 billion, an increase of 6.7% from the same quarter a year earlier, when sales had slipped to roughly $1.35 billion.
Comparable sales, the industry’s core measure of underlying demand, rose 2.9% in the quarter. That figure matters because it strips out the effect of new store openings and isolates how the existing fleet performed. Ecommerce sales climbed 17.4%, again outrunning the broader business and continuing a multi-quarter pattern in which the digital channel grows faster than the stores.
On the bottom line, Academy posted GAAP diluted earnings per share of $0.80, up 17.6% year on year, and adjusted diluted earnings per share of $0.93, up 22.4% from $0.76 in the prior-year quarter. The company opened two new stores during the period, bringing its total to 324 locations, and declared a quarterly cash dividend of $0.15 per share, payable on July 16, 2026, to stockholders of record as of June 18, 2026.
Chief Executive Steve Lawrence said the company was pleased with the continued improvement in results, noting that total sales rose 6.7% on the back of increases in both traffic and average ticket. The combination of more shoppers and larger baskets is the cleaner version of a retail recovery, because it shows demand strengthening rather than the business leaning on price increases alone.
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Net sales | $1.44bn | ~$1.35bn | +6.7% |
| Comparable sales | +2.9% | Negative | Return to growth |
| Ecommerce sales | +17.4% | n/a | Outpaced total |
| GAAP diluted EPS | $0.80 | ~$0.68 | +17.6% |
| Adjusted diluted EPS | $0.93 | $0.76 | +22.4% |
| Total stores | 324 | ~320 | +2 in quarter |
How does Academy Sports make money, and who are its rivals?
Academy Sports and Outdoors is a full-line sporting goods and outdoor recreation retailer that sells across four broad merchandise groups: sports and recreation, apparel, footwear, and outdoors. The outdoors group, which spans fishing, hunting, camping, and firearms, distinguishes Academy from purely athletic competitors and ties a meaningful share of its sales to seasonal and regional demand. The chain operates large-format stores, typically around 70,000 square feet, concentrated in the southern United States.
The economics rest on a value positioning: Academy aims to undercut specialty rivals on price while carrying a deeper outdoor assortment than mass merchants. That places it in a crowded competitive field. Its closest national peer is Dick’s Sporting Goods, the larger of the two by revenue, while mass retailers such as Walmart and Amazon compete on price and convenience for commodity athletic and camping goods.
On the outdoor side, Academy contends with Bass Pro Shops and its Cabela’s banner, along with regional and independent operators. The breadth of competition is why traffic and ticket gains carry weight: in a category where shoppers can cross-shop on price with a few taps, winning more visits and larger baskets signals that Academy’s assortment and value message are landing.
The model that protects margin
Academy’s profitability hinges on private and exclusive brands, which carry higher margins than national brands and now form a substantial part of the assortment. Owned brands such as Magellan Outdoors and BCG give the retailer pricing control and differentiation that national-brand-only competitors lack. Growing the penetration of these labels is a core lever in the long-range margin plan.
The store network also functions as the backbone of fulfillment. By shipping online orders from stores and offering in-store and curbside pickup, Academy uses inventory it already holds to serve digital demand, which limits the incremental cost of ecommerce growth. That structural choice is what allows the company to chase a higher online mix without the margin drag that pure-play fulfillment can impose.
The regional concentration question
Academy’s footprint is weighted toward Texas and the broader South, a concentration that cuts both ways. It gives the retailer dense brand awareness and supply-chain efficiency in its core markets, but it also ties results to regional economic conditions and weather. The expansion plan deliberately pushes new stores into adjacent and newer states to diversify that exposure over time.
Why does the comparable sales turnaround matter?
For most of the prior fiscal year, Academy was a name investors filed under post-pandemic hangover. The retailer had ridden a surge in demand for fishing gear, firearms, camping equipment, and athletic apparel during 2020 and 2021, then spent the following years lapping those inflated numbers with shrinking comparable sales. A positive 2.9% comp is the first plain signal that the lapping is over and growth has resumed.
The quality of the comp is as important as the headline. When same-store sales rise because shoppers are visiting more often and spending more per visit, the gain tends to be durable. When it rises only because prices went up, it can reverse the moment promotions return. Academy attributed the quarter to both traffic and ticket, which is the configuration that retail analysts treat as the healthiest.
The turnaround also lands against a soft backdrop for discretionary spending. Several US chains have warned this year about cautious consumers and the drag of higher operating costs, and a wave of leadership changes has pushed some retailers toward restructuring. Academy’s return to growth stands out precisely because it runs counter to that current, a contrast explored in our analysis of why a US retail restructuring wave is likely in the second half of 2026.
Traffic and ticket both moved higher
Academy’s management framed the quarter around two levers moving in the same direction. Traffic measures how many transactions the chain rang up, a proxy for whether the brand is winning shopping trips. Average ticket measures how much each of those trips was worth, a proxy for basket size and mix.
When both rise together, it usually means the assortment is resonating and the customer is willing to trade up rather than trade down. That is a meaningful shift for a value-oriented retailer whose core shopper has spent two years hunting for deals. It suggests Academy is converting store visits into larger purchases without leaning entirely on markdowns.
How big was the earnings beat versus Wall Street?
Adjusted earnings of $0.93 a share came in $0.02 ahead of the $0.91 that analysts had modeled, according to consensus data compiled by MarketBeat. Revenue of $1.44 billion was roughly in line with, and modestly above, the Street’s expectation of about the same figure. In a quarter where the bar had been set cautiously, beating on the bottom line while growing the top line is the outcome that tends to move the stock higher before the open.
The contrast with a year earlier sharpens the picture. In the comparable quarter of fiscal 2025, Academy had actually missed expectations, reporting adjusted earnings of $0.76 a share on net sales that fell 0.9% to $1.35 billion. Moving from a miss with falling sales to a beat with rising sales in twelve months is the kind of inflection that re-rates a stock’s narrative.
What analysts had penciled in
Heading into the print, the sell side had grown more constructive on Academy after the company used an April analyst day to outline a multi-year growth plan and to flag preliminary first quarter sales growth of 6% to 7%. That guidance effectively pre-loaded the top-line beat, so the genuine surprise was the strength of the margins and the earnings upside.
Investors had also been watching whether the comparable sales line would actually turn positive or merely stop falling. A 2.9% comp cleared the higher of those two bars. The result echoes a pattern seen across several specialty and department store names this season, including the beat that lifted guidance at jeweler Signet, covered in our report on how Signet Jewelers beat Q1 estimates and raised its full-year outlook.
What did Academy say about full-year guidance?
Based on the first quarter performance, Academy raised the low end of its full-year fiscal 2026 guidance. Lifting the floor of a range, rather than the whole band, is a measured move. It tells the market that the downside case has improved while leaving room for the back half of the year to play out, a stance that fits a management team rebuilding credibility after a difficult prior year.
For context, Academy closed fiscal 2025 with roughly $6.1 billion in total sales, GAAP diluted earnings of $5.54 a share, and adjusted diluted earnings of $5.78. The company carried a conservative balance sheet into the new year, with net leverage of about 0.2 times and adjusted EBITDA of $666.3 million, and it has returned about $1.8 billion to shareholders through buybacks and dividends since its 2020 initial public offering.
The dividend declaration reinforced that capital-return posture. A $0.15 quarterly payout is modest in absolute terms, but maintaining and growing it through a downturn signals confidence in cash generation. The clearer guidance lift is the raised floor, which functions as management’s statement that the first quarter was a foundation rather than a one-off.
The balance sheet gives Academy room to keep returning cash while it invests. Net leverage of roughly 0.2 times is conservative for a retailer of its size, and the company generated adjusted EBITDA of $666.3 million in fiscal 2025. That financial flexibility matters because it lets management fund new stores, technology, and buybacks at the same time, rather than choosing among them. Since going public in 2020, Academy has returned about $1.8 billion to shareholders, a track record that underpins the capital-return story behind the latest dividend.
Margin direction will ultimately decide whether the raised floor becomes a raised ceiling. Academy closed fiscal 2025 with an adjusted operating margin around 9% and a return on invested capital near 20%, both healthy for the sector. If the company can hold gross margin steady while comparable sales grow, the operating leverage in its lean cost base converts modest sales gains into outsized earnings growth, which is precisely the mechanism the $9 long-range EPS target relies on.
| Measure | FY2025 actual | Long-range target |
|---|---|---|
| Total sales | ~$6.1bn | $8bn+ |
| GAAP diluted EPS | $5.54 | $9 |
| Net income margin | ~5% | 7% |
| Ecommerce penetration | ~12% | 15%+ |
| Store count | 322 | 450+ |
What did the April analyst day set up?
The first quarter result is best read against the multi-year framework Academy laid out at an investor and analyst day on April 7, 2026. At that event the company set long-range targets of more than $8 billion in total sales, a net income margin of 7%, ecommerce penetration above 15%, GAAP earnings of $9 a share, and a store base exceeding 450 locations, implying more than 125 additional openings over the planning horizon.
Those targets reset the investment case from a recovery story to a growth story, provided the company can execute. The April day also flagged preliminary first quarter sales growth of 6% to 7%, which the actual 6.7% result delivered at the upper part of the range. Hitting the number the company itself pre-announced builds the credibility a management team needs when asking the market to underwrite a multi-year plan.
The plan leans on three engines: new-store growth, ecommerce expansion, and margin gains from owned brands and supply-chain efficiency. Each carries execution risk, but the first quarter offered an early proof point on two of the three, with sales growth and an accelerating online channel both moving in the planned direction. The margin leg will take more quarters to validate.
Why credibility is the real currency
For a stock that spent the prior year in the penalty box, the gap between guidance and delivery is what investors price. By pre-announcing a sales range in April and then landing inside it in June, Academy narrowed that gap. The decision to raise only the low end of full-year guidance fits the same disciplined posture, signaling improvement without overreaching on a back half that has yet to be proven.
How does the ecommerce surge fit the long-range plan?
The 17.4% jump in online sales is the metric that should interest digital commerce readers most. Academy entered the year with ecommerce at roughly 12% of total sales and has set a target of more than 15% penetration over its planning horizon. Growing the online channel several times faster than the store base is exactly how a retailer closes that gap without cannibalizing its physical footprint.
Academy’s digital model leans heavily on omnichannel fulfillment, where the store network doubles as a distribution grid for buy-online-pickup-in-store and ship-from-store orders. That approach lets the company convert online demand using inventory it already holds, which protects margins relative to building separate ecommerce warehouses. The strategy mirrors the broader industry move to treat stores as fulfillment assets rather than pure showrooms.
The pivot also reflects where retail profit pools are shifting. Specialty chains are increasingly chasing higher-margin digital revenue, marketplace models, and retail media to lift returns, a transition we examined in our look at how Best Buy is shifting its margin story toward marketplace and advertising. Academy is earlier in that journey, but the accelerating online line shows the same gravitational pull.
The path to 15% online penetration
Reaching 15% digital penetration from 12% sounds incremental, yet at Academy’s scale each point of mix represents tens of millions of dollars in sales moving from the floor to the app and website. The company has invested in its mobile experience, loyalty program, and assortment expansion online, including categories that are difficult to merchandise in a fixed store footprint.
The risk is that online growth carries shipping and returns costs that can dilute profitability if not managed. Academy’s reliance on store-based fulfillment is the hedge against that drag. If the retailer can keep online growth in the high teens while holding fulfillment costs flat, the mix shift becomes accretive rather than dilutive, which is the outcome the long-range plan assumes.
How does Academy compare with other US retailers this season?
Academy’s beat-and-raise places it in a small cohort of US retailers that have outperformed a cautious consumer this earnings season. The pattern has been selective rather than broad: chains with sharp value propositions, controlled inventory, and improving traffic have beaten, while those caught in structural decline have warned or restructured.
Department store operator Macy’s offered an earlier example of the upside case, where strength at its luxury Bloomingdale’s and Bluemercury banners helped the company beat and lift its outlook, as detailed in our coverage of how Macy’s beat Q1 estimates and raised its 2026 outlook. Academy’s result fits the same template of a turnaround built on traffic and disciplined execution.
The strength is not confined to the United States. Spanish fast-fashion giant Inditex, the owner of Zara, posted a profit rise and a strong start to summer trading this season, a signal that well-run retailers can grow even where consumer sentiment is soft. Taken together, these prints suggest the divide in retail is less about geography and more about execution.
| Retailer | Quarter result | Comparable sales | Guidance action |
|---|---|---|---|
| Academy Sports | Beat | +2.9% | Raised low end |
| Macy’s | Beat | Improved | Lifted outlook |
| Signet Jewelers | Beat | Positive | Raised full-year |
| Inditex (Zara) | Profit rise | Strong trading | Confident outlook |
What does this mean for the sporting goods category?
Academy’s quarter is a useful read on the health of the sporting goods and outdoor category, which spans athletic footwear and apparel, team sports equipment, fishing and hunting gear, camping, and fitness. A return to comparable sales growth suggests demand across these segments has stabilized after the post-pandemic normalization that hit big-ticket outdoor categories hardest.
The athletic apparel and footwear side of the category remains a battleground, with brands investing aggressively to win shelf space and shopper loyalty. The intensity of that competition is visible in deals such as the global expansion of the Curry brand, examined in our piece on how Stephen Curry signed a $400 million Li-Ning deal to take Curry Brand global. Strong brand pull at the product level helps retailers like Academy drive the traffic that powered this quarter.
For the wider category, Academy’s traffic-led growth is encouraging because it points to genuine demand rather than clearance-driven volume. If the largest specialty player is seeing more shoppers and bigger baskets, smaller competitors and vendors supplying the category stand to benefit from the same underlying trend.
Where the demand is coming from
Academy serves a predominantly value-conscious customer base concentrated in the southern United States, and the company has noted improving engagement from higher-income shoppers trading into its stores. That trade-in dynamic, where households seeking value move toward Academy’s price points, can be a tailwind when broader spending tightens.
Seasonal categories also play a role. The first quarter captures the start of spring and early summer demand for outdoor recreation, fishing, and youth team sports, and an early, favorable season can lift the quarter. The durability of the trend will depend on whether the summer and back-to-school periods sustain the traffic gains seen in the first quarter.
What are the risks and what should investors watch next?
The most immediate risk is the macro backdrop. Academy sells discretionary goods to a value-oriented customer, the segment most exposed to any softening in employment, wages, or consumer confidence. A beat in the spring quarter does not guarantee the back half, and management’s choice to raise only the low end of guidance acknowledges that uncertainty.
Tariffs and sourcing costs are a second watch item. Much of the sporting goods category is imported, so shifts in trade policy can pressure product costs and force retailers to choose between absorbing the hit or passing it to shoppers. Academy’s scale gives it some negotiating leverage, but it is not immune to input-cost inflation.
Execution on the store-expansion plan is the third variable. The long-range target of more than 450 stores requires Academy to keep opening locations that perform to plan while protecting the productivity of the existing fleet. New-store returns and the pace of openings will shape whether the $8 billion sales goal stays credible.
The second-half setup
The key tests ahead are the back-to-school and holiday quarters, which carry a larger share of annual sales and profit. Investors will look for the comparable sales line to stay positive and for ecommerce to hold its high-teens growth rate. Sustained traffic gains would confirm that the first quarter marked a genuine inflection rather than an easy comparison against a weak prior year.
Margin direction is the other signal to watch. If Academy can grow sales while holding or expanding gross margin, the earnings leverage compounds quickly given the company’s lean cost structure. The combination of positive comps, fast online growth, and a raised guidance floor sets a constructive tone, but the durability of the recovery will be judged on the quarters that carry the year.
FAQ: Academy Sports first quarter questions worth answering
What did Academy Sports report for the first quarter of fiscal 2026?
Academy reported net sales of $1.44 billion, up 6.7% year on year, with comparable sales up 2.9% and ecommerce sales up 17.4%. GAAP diluted earnings were $0.80 a share and adjusted diluted earnings were $0.93, both higher than the prior year.
Did Academy Sports beat Wall Street estimates?
Yes. Adjusted earnings of $0.93 a share came in $0.02 above the $0.91 consensus, and revenue of about $1.44 billion was roughly in line with, and modestly above, expectations.
Why is the 2.9% comparable sales figure significant?
Comparable sales strip out new-store effects and measure underlying demand at existing locations. A positive 2.9% marks a return to growth after a stretch of declines, and management said it was driven by gains in both traffic and average ticket.
Did Academy Sports raise its guidance?
The company raised the low end of its full-year fiscal 2026 guidance based on the first quarter performance. Lifting the floor of the range signals an improved downside case while leaving room for the second half to develop.
How fast is Academy’s ecommerce business growing?
Online sales rose 17.4% in the quarter, outpacing total sales. Academy entered the year with ecommerce at roughly 12% of sales and targets more than 15% penetration over its long-range plan.
What dividend did Academy declare?
The board declared a quarterly cash dividend of $0.15 per share, payable on July 16, 2026, to stockholders of record as of June 18, 2026.
How many stores does Academy Sports operate?
Academy opened two new stores in the quarter, bringing the total to 324 locations. Its long-range plan targets more than 450 stores.
How does this quarter compare with a year ago?
A year earlier, in the first quarter of fiscal 2025, Academy missed expectations with adjusted earnings of $0.76 a share and net sales that fell 0.9% to $1.35 billion. The swing to growth and an earnings beat marks a clear turnaround.
What are the main risks to the recovery?
The principal risks are a softening consumer, tariff and sourcing cost pressure on imported goods, and execution on the store-expansion plan. The back-to-school and holiday quarters will test whether the first quarter inflection holds.
The bottom line for Academy Sports
Academy entered fiscal 2026 carrying the weight of a difficult prior year, and the first quarter answered the central question hanging over the stock: whether demand had genuinely turned. A 6.7% rise in sales, a positive comparable sales figure built on traffic and ticket, and an earnings beat together make a credible case that the recovery is real.
The cautious half-step on guidance keeps expectations grounded, and the heavier quarters of the year still lie ahead. But for a retailer that a year ago was missing estimates with falling sales, a beat-and-raise reframes the narrative. The durability of that shift, more than any single quarter, is what will determine whether Academy delivers on its longer-range ambitions.