Academy Sports Q4 EPS Misses Estimates, Sales Rise 2.5% and AUR Up 10%
Academy Sports posted Q4 adjusted EPS of $1.97 and $1.72bn revenue, missing estimates as comps fell 1.6% despite 2.5% sales growth, triggering a 5.3% share drop. The retailer lifted AUR 10%, expanded full-year gross margin to 34.8% and guided FY2026 sales of $6.27bn with EPS of $6.35, up 9.9%.
1. Q4 Earnings Performance
Academy Sports reported adjusted EPS of $1.97 and revenue of $1.72 billion for the quarter ended January 31, with sales up 2.5% but comparable store sales down 1.6%, causing shares to drop 5.3%.
2. Operational and Margin Initiatives
The retailer lifted average unit retail by 10% through promotional optimization and 'better/best' assortments, expanding full-year gross margin to 34.8% while offsetting tariff impacts through sourcing diversification. It also improved in-stock levels by 500 basis points via RFID covering 25% of annual sales and attracted 10% more customers from households earning over $100k.
3. Guidance and Dividend
Management projected fiscal 2026 net sales of $6.18–6.36 billion (3.5% growth at midpoint) and adjusted EPS of $6.10–6.60 (9.9% growth at midpoint), while raising the quarterly dividend by 15% to $0.15 per share.