Academy Sports Posts Fifth Consecutive Quarterly Revenue Decline

Academy Sports + Outdoors (ASO) reported a disappointing first quarter for fiscal 2026 with a 0.9% year-over-year revenue decline and a 3.7% drop in comparable sales, continuing a trend of challenges primarily due to weak spending among lower-income customers and increased competition from Dick’s Sporting Goods. Despite these setbacks, ASO's stock rose, driven by low expectations and optimism around improving sequential sales trends and proactive risk management, including a major brand launch of the Jordan Brand in 145 stores and online, enhancing its appeal among younger and higher-income consumers. The company maintains confidence in future growth through initiatives such as new store openings, with plans for 20-25 new stores in 2025, and has issued a cautious but positive sales guidance for fiscal 2026. Investors have shown heightened interest in ASO, reflected in unusual options activity and an average analyst price target implying nearly 20% upside, supported by brokerage firms rating the stock as an 'outperform'. Additionally, ASO launched its largest brand-building campaign to date, 'Fun Can’t Lose,' emphasizing the joy of outdoor activities beyond competition, signaling a strategic focus on emotional engagement with consumers. These developments suggest ASO is positioning itself for a rebound despite current headwinds in the retail sports market.