Academy Sports Stock Jumps After Q2 Earnings Beat and Raised Profit Guidance

Shares of Academy Sports and Outdoors Inc. (NASDAQ: ASO) surged on Wednesday after the company reported second-quarter financial results that exceeded Wall Street's profit expectations and raised its full-year earnings outlook.

Earnings Beat and Guidance Boost

The sporting goods retailer announced adjusted earnings per share (EPS) of $2.31, comfortably beating the analyst consensus of $2.08, according to Investing.com. Revenue for the quarter was $1.65 billion, which met expectations.

Buoyed by the strong performance, Academy raised its fiscal 2026 guidance:

• Adjusted EPS is now forecast to be in the range of $6.50 to $6.90, an increase from the prior range of $6.40 to $6.80.
• The company affirmed its full-year net sales outlook of $6.23 billion to $6.36 billion.

Sales Performance and Consumer Trends

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While total net sales grew 3.0% year-over-year from $1.60 billion, the company reported a slight decline in comparable sales of 0.4%. This suggests that new store openings or other channels drove the top-line growth.

A significant bright spot was the company's digital business, with eCommerce sales growing 12.8% during the quarter. In its announcement, Academy noted that consumer spending remains under pressure, particularly among lower-income households, but said its team continued to execute well.

Market Reaction and Strategy

Investors reacted positively to the beat-and-raise report, with the company's stock jumping more than 11% in premarket trading. The results were supported by a net tariff refund that contributed $0.06 to EPS.

"We delivered another quarter of profitable growth," said CEO Steve Lawrence in a statement. He added that the company is reinvesting tariff-related benefits into value for customers and is focused on expanding its brand portfolio and accelerating initiatives across its stores, omni-channel platform, and loyalty program.