Academy Sports and Outdoors, Inc.

Net sales were $1.44 billion, up 6.7% year over year, and comparable sales increased 2.9%. Gross margin was 33.2%, down 71 basis points year over year, with tariff pressure partially offset by freight and shrink favorability. SG&A was 28.1% of sales, improving 77 basis points. Operating income was $74.7 million. Diluted EPS was $0.80, up 17.6%, and adjusted EPS was $0.93, up 22.4%. Free cash flow was $121.6 million, up 14.2% year over year, and inventory dollars per store were down 0.8% while units per store were down 6.8%. For FY26, Academy raised sales guidance to $6.23 billion-$6.35 billion, implying 3% to 5% growth, and comp guidance to flat to up 2%. It maintained gross margin guidance at 34.5% to 35%, raised net income guidance to $390 million-$415 million, and guided EPS to $5.95-$6.35 and adjusted EPS to $6.40-$6.80.

Steven Paul Lawrence said the quarter was driven by broad-based momentum, led by outdoor, e-commerce, and strong performance across all divisions. He emphasized that Academy’s value proposition is resonating in a pressured consumer environment, especially with higher-income shoppers trading into the chain and with new initiatives like the loyalty relaunch, new store openings, and AI-enabled omnichannel upgrades. His tone was constructive but cautious: he acknowledged gas prices are hurting demand, yet said the company is seeing enough self-help and customer response to remain confident in the plan.

Earl Carlton Ford focused on the financial mechanics behind the quarter and the updated outlook. He said the 71 basis point gross margin decline was primarily tariff-driven, SG&A leverage came from the 2.9% comp and lapping $7.5 million of prior-year Nike/Jordan expansion costs, and free cash flow reached $121.6 million with $338 million of cash and an untapped $1 billion revolver. He also highlighted capital returns, including repurchasing about 1.7 million shares, paying $9.6 million in dividends, and ending the quarter with $338 million remaining on the buyback authorization. He noted the May debt refinancing at 5.875% should save about $2.5 million annually for the next five years.

Analysts focused on gas prices, tariffs, gross margin cadence, and whether Q2 would still be the weakest comp quarter. Management said gas prices are clearly slowing consumer spending, but Memorial Day trends were tracking roughly flat comp and the company still expects the full-year range to be achievable through loyalty, World Cup, America 250, and card relaunch benefits. On tariffs, Earl said the first quarter had the largest impact for the year and that margins should improve in the back half as that pressure rolls off; he also clarified that $10.5 million of tariff-related refund value is embedded in the annual guidance and that none was recognized in Q1.