Academy Sports and Outdoors (NASDAQ: ASO) reported stronger first-quarter fiscal 2026 results on Tuesday, driven by higher customer traffic and increased spending per transaction, prompting the retailer to raise the lower end of its full-year financial guidance.
For the quarter ended May 2, 2026, the sporting goods and outdoor recreation retailer generated net sales of $1.44 billion, up 6.7% from $1.35 billion in the same period a year earlier. Comparable sales increased 2.9%, reversing a 3.7% decline recorded during the prior-year quarter.
The company reported net income of $52.7 million, compared with $46.1 million a year ago, representing a 14.3% increase. Diluted earnings per share rose to $0.80 from $0.68, while adjusted diluted earnings per share climbed 22.4% to $0.93.
Management attributed the performance to continued gains in store traffic and higher average transaction values, reflecting steady consumer demand despite ongoing inflationary pressures.
“Based on our first-quarter performance, we are raising the low end of our full-year guidance,” the company said, while noting that consumers are expected to remain under financial pressure for the remainder of the year.
Profitability and Cash Position Improve
Income before taxes increased 9.4% year-over-year to $68.9 million, while adjusted net income rose 18.6% to $61.2 million.
Academy Sports and Outdoors (ASO) ended the quarter with $337.8 million in cash and cash equivalents, an increase of 18.5% from the same period last year. Merchandise inventories totaled $1.65 billion, though inventory per store declined 6.8% in units and 0.8% in dollar terms, reflecting ongoing inventory management efforts.
Long-term debt remained largely unchanged at approximately $480.3 million.
The company also continued returning capital to shareholders. During the quarter, ASO repurchased $99.3 million of stock and paid $9.6 million in dividends. Following quarter-end, the board approved a quarterly cash dividend of $0.15 per share payable on July 16, 2026.
Store Expansion Continues
Academy Sports and Outdoors (ASO) opened two new stores during the first quarter, bringing its total store count to 324 locations. The retailer plans to open three additional stores during the second quarter and expects to launch another 15 to 20 locations during the second half of fiscal 2026.
Total retail square footage increased to approximately 22 million square feet as the company continued executing its long-term expansion strategy.
Company Raises Fiscal 2026 Guidance
Following the stronger-than-expected start to the year, Academy Sports and Outdoors increased the lower end of several key financial guidance ranges for fiscal 2026.
The company now expects full-year net sales between $6.23 billion and $6.36 billion, compared with its previous forecast range of $6.18 billion to $6.36 billion.
ASO also raised the lower end of its projected net income range to $390 million from $380 million previously. Adjusted net income is now expected to be between $420 million and $445 million.
On the earnings front, the retailer increased its projected diluted earnings per share range to $5.95 to $6.35, up from a previous range of $5.65 to $6.15. Adjusted earnings per share are now expected to reach between $6.40 and $6.80.
The company maintained its capital expenditure forecast of $200 million to $240 million and reaffirmed expectations for adjusted free cash flow of $250 million to $300 million.
Outlook
Management said it remains cautious about broader economic conditions and the impact of inflation on consumer spending. However, executives expressed confidence that Academy Sports and Outdoors (ASO)’s value-focused product assortment, disciplined inventory management, and ongoing store expansion efforts will support continued growth throughout the remainder of the year.
With improving comparable sales trends, expanding market presence, and stronger profitability, the company enters the second quarter with positive momentum and an upgraded financial outlook.