Academy Sports and Outdoors reported second quarter results on September 10 that showed net sales up 3% to $1.65 billion while comparable sales slipped 0.4%. Adjusted earnings per share climbed 19.1% to $2.31 from $1.94 a year earlier, and gross margin expanded 440 basis points to 40.4%, with 510 basis points of that gain coming directly from one-time tariff refunds. The company raised its full-year adjusted EPS guidance to $6.50 to $6.90 and its gross margin guidance to 35.5% to 36.0%, and repurchased $181 million of stock in the first half, about 5% of shares outstanding. Underneath the margin story, traffic from households earning less than $50,000 a year fell in the high single digits, steeper than the low single-digit decline in the first quarter, while traffic from households earning more than $100,000 accelerated to high single-digit growth. CFO Carl Ford said fuel costs will stay elevated for the rest of the year and CEO Steve Lawrence said the consumer backdrop will remain challenged in the back half, and the company confirmed it has already received substantially all of its tariff refunds, meaning the 510 basis point margin tailwind will not repeat.
Academy Sports Outdoors IncQ2 adjusted EPS rose 19.1% to $2.31 and full-year EPS and gross margin guidance were raised, aided by one-time tariff refunds.
