Business Overview
Academy Sports and Outdoors is a leading full-line sporting goods and outdoor recreation retailer operating 324 retail locations across 21 states plus e-commerce channels. In the thirteen weeks ended May 2, 2026, the company generated net sales of $1.442 billion, up 6.7% from $1.351 billion in the prior year period, with net income of $52.7 million compared to $46.1 million. The company maintains three distribution centers and continues to invest in omnichannel capabilities including e-commerce sales representing 11.0% of merchandise sales.
Segment Performance
By merchandise division for the thirteen weeks ended May 2, 2026 vs. May 3, 2025: Outdoors grew to $427.4 million from $382.6 million (+11.7%); Sports and recreation increased to $355.9 million from $335.1 million (+6.2%); Apparel rose to $348.3 million from $332.6 million (+4.7%); Footwear grew to $300.8 million from $292.7 million (+2.8%). Total merchandise sales increased 6.6% to $1,432.5 million. E-commerce sales grew to 11.0% of merchandise sales from 10.0% in the prior year. Gross margin expanded to $479.3 million (33.2% of sales) from $458.9 million (33.9% of sales).
Key Risk Factors
The company faces covenant restrictions under its ABL Facility, Term Loan, and Notes agreements that may limit its ability to incur additional indebtedness, create liens, pay dividends, and engage in certain transactions. Debt maturity risk exists as the Term Loan ($85 million) and Notes ($400 million) both mature in November 2027. The company also faces operational risks related to inventory valuation and potential asset impairment, as evidenced by significant goodwill ($861.9 million) and intangible assets that require periodic impairment testing.
