ASO earnings analysis
What we found in ASO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Academy delivered solid reported growth, with revenue up 3.0% to $1.647 billion, diluted EPS of $2.17, gross margin up 440 basis points to 40.4%, and adjusted quarterly free cash flow of $115.9 million. However, comparable sales declined 0.4%, transactions fell 5.3%, and much of the margin improvement came from a one-time 510-basis-point tariff-refund benefit. The balance sheet remains liquid following refinancing, with $298.2 million of cash and $993.6 million of ABL capacity, supporting a neutral assessment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS increased year over year
- Net sales increased 3.0% year over year to $1.647 billion, while diluted EPS rose to $2.17 from $1.85. Net income increased 9.9% to $137.9 million.
- Margins expanded materially
- Gross margin expanded 440 basis points to 40.4% from 36.0%, and operating margin increased to 15.0% from 10.8%. The gross-margin gain included 510 basis points from one-time IEEPA tariff refunds.
- Digital growth offset soft comps
- E-commerce sales increased 14.1% year over year and represented 12.1% of merchandise sales versus 10.9% previously. Comparable sales declined 0.4%, but the company opened three stores during the quarter.
- Cash generation improved
- Operating cash flow increased to $188.4 million for the quarter and adjusted free cash flow was $115.9 million, compared with $21.7 million in the prior-year quarter. Year-to-date operating cash flow was $349.0 million.
- Debt maturities were extended
- The company refinanced its debt, issuing $500.0 million of 5.875% senior secured notes due 2031 and repaying the $400.0 million 2020 Notes and $85.8 million Term Loan. Interest expense declined 10.8% year over year to $8.1 million.
- Aggressive share repurchases continued
- The company repurchased 1.61 million shares for $82.9 million in the quarter and had $256.1 million remaining under its $700 million repurchase authorization as of August 1, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Traffic and consumer demand remain weak
- Comparable sales declined 0.4% and comparable transactions fell 5.3%, indicating continued consumer traffic pressure despite a 4.9% increase in average ticket.
- Margin benefit is partly nonrecurring
- The 440-basis-point quarterly gross-margin expansion included 510 basis points from one-time IEEPA tariff refunds; merchandise margin itself was unfavorable by 90 basis points, including 70 basis points of tariff-refund reinvestment into pricing.
- Inventory exposure increased
- Merchandise inventories increased to $1.657 billion from $1.588 billion a year earlier, a $69.8 million increase, while management identifies inventory management and avoiding excess markdowns as ongoing priorities.
- Debt and lease commitments remain substantial
- The company had $500.0 million of senior secured notes outstanding at 5.875%, along with $2.411 billion of remaining operating lease payments. Debt and lease obligations could constrain liquidity if operating cash flow weakens.
- Growth investment raises cash requirements
- Fiscal 2026 capital expenditures are expected to be $200 million-$240 million, while $208.1 million of technology, construction and other contractual commitments existed as of August 1, 2026, including $97.9 million payable within 12 months.
- Tariff and macroeconomic uncertainty persists
- Management states there were no material changes to the Annual Report risk factors, but continues to cite tariffs, inflation and shifting trade policies as factors that could adversely affect sales and merchandise margin.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.17
- Gross margin
- 40.4%
- Operating margin
- 15.0%
- Segment
- Single reportable retail segment: $1.647 billion revenue, up 3.0% year over year. Product divisions: Outdoors $468.6 million, up 4.4%; Sports and recreation $393.1 million, up 6.3%; Apparel $451.9 million, approximately flat; Footwear $319.9 million, down 1.0%.
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. Management expects fiscal 2026 capital expenditures of $200 million-$240 million and states that cash and cash equivalents plus ABL availability will fund requirements for the next 12 months and the longer term foreseeable future.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 10, 2026
- Academy Sports + Outdoors (ASO) reported Q1 2026 revenue of $1.442B, marking a 6.7% increase year-over-year, and operating income rose to $74.7M with a slight uptick in operating margin. However, the gross margin shrank…
- 10-K · March 17, 2026
- Academy Sports + Outdoors positions itself as a value-based, regionally focused sporting goods and outdoor retailer with a growing omnichannel business and a 322-store footprint (as of January 31, 2026). Fiscal 2025 net…
- 10-Q · June 10, 2025
- Academy Sports & Outdoors reported net sales of $1,351,409,000 for the thirteen weeks ended May 3, 2025, a slight decline of 0.94% from $1,364,220,000 a year earlier. Gross margin improved modestly to ~34.0% (458,869 /…
- 10-Q · December 10, 2024
- Academy reported net sales of $1,343,330,000 for the thirteen weeks ended November 2, 2024, down $54,447,000 (≈3.9%) versus the prior-year quarter, with diluted EPS of $0.92 versus $1.31 a year ago. Gross margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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