Academy Sports and Outdoors reported second-quarter results for the period ended August 1, 2026, with net sales up 3.0% to $1.65 billion and adjusted earnings per share climbing 19.1% to $2.31 from $1.94. Gross margin widened 440 basis points to 40.4%, though comparable sales fell 0.4%, and management lifted full-year adjusted EPS guidance to $6.50 to $6.90 and gross margin guidance to 35.5% to 36.0%. Four analysts raised their price targets without upgrading the stock: Telsey Advisory went to $63 from $60 at Outperform, Wells Fargo's Ike Boruchow to $55 from $50 at Equal Weight, Barclays analyst Adrienne Yih to $53 from $50 at Equal Weight, and UBS to $58 from $55 at Neutral, while BMO Capital initiated coverage at Market Perform with a $42 target. Supporting the quarter, e-commerce sales grew 12.8%, Sports and Recreation rose 6%, myAcademy loyalty membership passed 15 million, and the company raised adjusted free cash flow guidance to $300 million to $350 million after repurchasing $182.1 million of stock in the first half. Caution persists, however, as traffic from households earning under $50,000 fell high single digits, footwear sales declined 1%, inventory rose 4.4% year-over-year, and 510 basis points of tariff refund benefit inside the 40.4% gross margin will not repeat. Hedge fund ownership fell to 29 funds from 31 between the first and second quarters of 2026, with Royce & Associates holding the largest position at 1.08 million shares worth $51 million, and shares trade at 8.16 times forward earnings as of September 15, 2026, with short interest at 23.30% of float.
Academy Sports Outdoors IncQ2 beat with EPS up 19.1%, gross margin up 440bp, and raised full-year EPS/FCF guidance, prompting four analysts to raise price targets.
