Academy Sports Stock Drops 11% After Q4 Earnings Miss

Academy Sports Outdoor (ASO) stock fell 11% after Q4 2025 earnings miss, with weak forward guidance. However, one analyst remains bullish, reiterating an Outperform rating with a $65 price target, suggesting 20% upside. Comparable store sales declined 1.6% in Q4 and -1.5% for the full year, with transactions falling 6.4%. The company's FY2026 guidance suggests caution about the consumer environment, with CFO Carl Ford citing credit card delinquencies, job growth, and gas prices as headwinds. Elevated inventory is also a concern, particularly if promotional activity becomes necessary to clear product.