Academy Sports Reports Strong Q2 Earnings Driven by Tariff Refund
On September 10, Academy Sports and Outdoors (NASDAQ:ASO) reported second-quarter results marked by a significant profit boost from a one-time tariff refund. While net sales increased to $1.65 billion—a 3% rise—comparable store sales declined slightly by 0.4%. The company's adjusted earnings per share surged 19.1% year-over-year, reaching $2.31, largely due to the 510 basis point margin expansion from tariff refunds. Despite strong e-commerce growth and a successful World Cup-driven increase in sports sales, Academy noted weakening demand among lower-income customers. Traffic fell sharply for households earning under $50K while higher-income segments saw stronger gains. The company raised full-year adjusted EPS guidance to between $6.50 and $6.90 but warned that the tariff windfall will not repeat. Academy also announced stock repurchases totaling $181 million in H1 2026, representing about 5% of shares outstanding. New initiatives include a retail media network, AI-based search improvements, TikTok Shop integration, and new product launches like HOKA shoes.
Tickers: $ASO