It was a rough day for shareholders of Academy Sports and Outdoors, Inc. (ASO). The sporting goods retailer's stock took a tumble after the company reported fourth-quarter results that missed the mark and, more importantly, gave a look ahead to 2026 that left Wall Street wanting more.
Let's break down the numbers. For the quarter, Academy Sports posted adjusted earnings per share of $1.97. That was below the $2.06 analysts were expecting. Sales came in at $1.719 billion, which was a 2.5% increase from a year ago but still missed the consensus estimate of $1.758 billion. Perhaps the most telling figure was a 1.6% decline in comparable sales—a key metric that shows how existing stores are performing.
The company's adjusted EBITDA, a measure of profitability, was also down year-over-year, totaling $202.571 million compared to $211.665 million last year. On the bright side, Academy Sports is still expanding its footprint, having opened 24 new stores in 2025 and planning to open another 20 to 25 in 2026. It ended the quarter with a healthy cash pile of $330.320 million.
But investors are clearly more focused on the future, and that's where the real disappointment lies. The company's guidance for fiscal 2026 came in below what analysts had modeled. Academy Sports expects GAAP earnings per share in the range of $5.65 to $6.15, while the Street was looking for $6.37. For adjusted earnings, the company forecasts $6.10 to $6.60 per share, compared to the analyst consensus of $6.46. Sales are projected to be between $6.175 billion and $6.355 billion, also shy of the $6.468 billion estimate.
So, what's going on? According to CEO Steve Lawrence, many of the macroeconomic pressures that customers faced in the latter half of 2025 are expected to persist into 2026. In other words, the environment remains challenging. Still, Lawrence struck a note of cautious optimism. "We are optimistic the strategies we have in place should enable us to return to consistent comp sales growth," he said.
The market's reaction was swift and clear. Academy Sports shares were trading lower by 9.41% to $51.19 at last check on Tuesday. When a company misses on the quarter and then guides below expectations for the year ahead, it's a one-two punch that tends to send the stock reeling. For now, investors are waiting to see if the company's strategies can indeed navigate those persistent headwinds and deliver that promised return to growth.
