Academy Sports' 2026 Q1 Earnings Call: Unpacking Contradictions in Weather Impact, SG&A Management, and Nike Partnerships

Impact of weather and consumer uncertainty, SG&A efficiency and cash flow management, Nike and Jordan brand partnership strengthening, Nike product launch strategy, and sales trajectory and promotion strategy are the key contradictions discussed in Academy Sports and Outdoors' latest 2026Q1 earnings call.



Revenue Growth and Earnings Performance:
- Academy Sports and Outdoors reported total comparable sales of $1.5 billion for the first quarter of 2026, a 9.8% increase over the previous year.
- The company's earnings per share were $0.22, exceeding analyst estimates by $0.06.
- The growth was driven by increased consumer demand for outdoor and sports products, with particular strength in categories like outdoor furniture and fitness equipment.

Digital Sales and Omnichannel Strategy:
- Academy Sports and Outdoors' digital sales rose by 11.8% year-over-year, making up 22% of total sales.
- The company's omnichannel strategy, which allows customers to order online and pick up in-store, accounted for 43% of digital sales.
- This rise was attributed to the company's investment in digital platforms and the overall shift in consumer behavior towards e-commerce.

Gross Margin Improvement:
- The company's gross margin improved to 25.8%, up from 24.3% in the prior year.
- The increase was driven by a better product mix, improved pricing strategies, and reduced promotional activities.

Inventory Management and Cost Control:
- Academy Sports and Outdoors managed to reduce its inventory levels by 23% compared to the previous year.
- The company achieved this through strategic supply chain management and a focus on high-demand products.
- This resulted in lower storage and holding costs, contributing to the company's overall financial performance.