Academy Sports + Outdoors posted first-quarter fiscal 2026 sales of $1.442 billion, up 6.7% from $1.351 billion a year earlier, as comparable sales turned positive at 2.9% after falling 3.7% in the prior-year quarter.
Traffic and average ticket both improved in the period, helping drive the top line. E-commerce sales rose 17.4%.
Profitability moved higher across the board. Income before income tax increased 9.4% to $68.9 million from $63.0 million. Net income climbed 14.3% to $52.7 million from $46.1 million. Diluted earnings per share rose 17.6% to $0.80 from $0.68.
The company’s adjusted numbers also improved: adjusted net income increased 18.6% to $61.2 million from $51.6 million, and adjusted diluted EPS rose 22.4% to $0.93 from $0.76.
On the balance sheet, cash and cash equivalents increased 18.5% to $337.8 million from $285.1 million. Merchandise inventories rose 6.1% to $1.654 billion from $1.560 billion, while inventory per store was down 6.8% in units and down 0.8% in dollars. Long-term debt was essentially flat at $480.3 million, compared with $482.2 million a year earlier.
Capital returns were nearly unchanged on share repurchases, at $99.3 million versus $99.9 million, while dividends paid increased 10.3% to $9.6 million from $8.7 million.
Academy opened two new stores in the quarter, bringing the total to 324 locations from 322 at the end of the prior fiscal year and 303 a year ago. Gross square footage rose to 22.037 million from 21.925 million at the end of fiscal 2025 and 20.879 million in the first quarter of fiscal 2025.
Management raised the low end of fiscal 2026 guidance after the quarter. Net sales are now expected to be $6.230 billion to $6.355 billion, compared with prior guidance of $6.175 billion to $6.355 billion. At the midpoint, that is up 4.0% from fiscal 2025 actuals. Comparable sales guidance moved to flat to up 2.0% from the prior range of down 1.0% to up 2.0%.
The company lifted its full-year GAAP net income outlook to $390 million to $415 million from $380 million to $415 million, and adjusted net income guidance to $420 million to $445 million from $410 million to $445 million. Diluted GAAP EPS guidance moved to $5.95 to $6.35 from $5.65 to $6.15, while adjusted diluted EPS guidance increased to $6.40 to $6.80 from $6.10 to $6.60.
Capital expenditure guidance remained at $200 million to $240 million, and adjusted free cash flow guidance stayed at $250 million to $300 million. The market has reacted to these announcements by moving the company's shares 7.3% to a price of $55.44. If you want to know more, read the company's complete 8-K report here.
