Academy Sports Reports Q2 Earnings with Strong Online Growth but Slowing Comparable Sales
Academy Sports and Outdoors (ASO) reported second-quarter earnings marked by strong e-commerce growth, margin expansion from tariff refunds, and improved adjusted EPS. Net sales rose to $1.65 billion, a 3% increase year-over-year, driven primarily by online performance and new store openings. However, comparable sales declined slightly due to inflationary pressures on lower-income households and timing of tax-free holidays. The company's e-commerce segment grew at an impressive rate of 12.8%, with penetration rising over a basis point compared to the prior year. Gross margin expanded by 440 basis points to 40.4% due largely to tariff refunds, while adjusted EPS increased significantly to $2.31 from $1.94 in Q2 last year. Despite these gains, management noted challenges ahead with elevated expenses and a difficult consumer environment expected for the remainder of the fiscal year. Academy also raised its full-year earnings guidance due to improved margins and share repurchases but affirmed sales expectations at between $6.23 billion and $6.36 billion.
Tickers: $ASO
Topics: e-commerce financial_performance retail sales_growth