Academy Sports Misses Q4 Sales and Profit Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy ASO?
Source: seekingalpha
- Sales and Profit Warning: Academy Sports and Outdoors (ASO) reported Q4 sales of $1.72 billion, reflecting a modest 2.4% year-over-year increase but falling short of expectations by $30 million, which has led to the stock dropping below its 200-day moving average, indicating market concerns about future performance.
- Limited Profit Improvement: Although the company saw a slight increase in earnings per share (EPS) to $1.97, it still missed expectations by eight cents, highlighting challenges in enhancing profitability that could affect investor confidence moving forward.
- Cautious Future Outlook: ASO forecasts FY26 net sales between $6.175 billion and $6.355 billion, representing a 3.5% increase at the midpoint from the previous year, yet this is below the consensus estimate of $6.46 billion, reflecting ongoing macroeconomic pressures on consumers.
- Market Environment Challenges: The company warns that financial pressures on American consumers are expected to persist into 2026, despite potential positive impacts from internal growth initiatives and external factors such as international sporting events, leaving the overall market outlook uncertain.
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Analyst Views on ASO
Wall Street analysts forecast ASO stock price to rise
12 Analyst Rating
4 Buy
8 Hold
0 Sell
Moderate Buy
Current: 53.510
Low
50.00
Averages
57.00
High
65.00
Current: 53.510
Low
50.00
Averages
57.00
High
65.00
About ASO
Academy Sports and Outdoors, Inc. is a full-line sporting goods and outdoor recreation retailer in the United States. The Company's product assortment is focused on key categories of outdoor, apparel, sports and recreation, and footwear through both national brands and a portfolio of over 19 private label brands. It has preferred access to national brands, such as Nike, Under Armour, adidas, Winchester, Columbia Sportswear, Brooks, Skechers, Yeti and Carhartt. Its private label brand portfolio consists of Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, Freely and R.O.W. Its primary product types include coolers and drinkware, camping accessories and camping equipment; fitness equipment, fitness accessories and nutrition supplies; outdoor apparel, seasonal apparel, denim, work apparel, graphic t-shirts and accessories; casual shoes, slippers, seasonal footwear, socks; boys and girls footwear, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- North American Market Growth: Nike's sales in North America rose 9% year-over-year to $5.6 billion, making it the company's largest market, but analysts note that growth is primarily driven by wholesale sales, necessitating attention to retail performance.
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- Valuation Surge: Over the past year, the valuations of Pro Padel League franchises have exceeded $10 million, a significant increase from the $200,000 entry fee in 2023, reflecting market recognition and future growth potential for the sport.
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- Interest Rate Range: The credit card, managed by Synchrony Bank, features interest rates ranging from 17% to 33% based on the cardholder's credit score, which may deter some consumers from utilizing the credit option due to high borrowing costs.
- Market Response: Despite the new credit card launch, Academy Sports' recent earnings report indicated a non-GAAP EPS of $1.97 for Q4 2026, missing expectations by $0.08, and revenue also fell short of market forecasts, raising concerns about the company's future growth prospects.
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- Personalized Rewards: The revamped myAcademy Rewards program offers personalized rewards and exclusive savings for every member, ensuring that customers can easily gain value whether shopping online, via the app, or in-store, thereby driving sales growth.
- Digital Ecosystem Enhancement: Academy has upgraded its entire digital platform, making it easier for members to sign up, track progress, view rewards, and redeem them across various channels, which enhances user experience and increases customer retention.
- Family-Centric Strategy: This program is specifically designed for the “Always Game Family,” aiming to provide high-value outdoor gear that helps families enjoy fun without exceeding their budgets, thereby strengthening the brand's competitive position in the market.
See More
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- Rich Member Benefits: The new program offers a $15 welcome bonus, a $15 birthday reward, and a $25 reward for spending $500 annually, aimed at attracting more family customers, enhancing brand loyalty, and driving sales growth.
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- Family-Centric Value Proposition: This program is designed for the “Always Game Family,” emphasizing the ability to enjoy outdoor fun without financial strain, reflecting Academy's deep understanding and commitment to customer needs.
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