BMO Maintains Academy Sports Rating Amid Continued Sales Growth Challenges

BMO Capital has reiterated its Market Perform rating and $42.00 price target for Academy Sports & Outdoors (ASO). The firm cited ongoing challenges in achieving positive comparable store sales, even with a boost from World Cup-related demand.

Although the company recently posted fiscal second-quarter earnings that surpassed analyst expectations, the market response remains cautious. Investors are weighing near-term profitability against long-term growth concerns.

"Even in a favorable World Cup-driven demand backdrop, Academy Sports is struggling to comp positively," BMO Capital analysts noted in a recent research update.

Earnings Performance vs. Sales Growth

In its fiscal second-quarter 2026 report, Academy Sports delivered an adjusted earnings per share (EPS) of $2.31, beating the consensus estimate of $2.09. Following these results, the company raised its full-year adjusted EPS guidance to a range of $6.50 to $6.90.

Despite the earnings beat, the company’s inability to generate positive comparable sales has become a focal point for analysts. This metric measures revenue from stores open for at least one year. Comparable sales growth indicates a retailer’s ability to attract new customers and increase transaction volume within existing locations, rather than relying on the expansion of its physical footprint.

Why Analysts Remain Cautious

In the retail sector, a disconnect between earnings beats and stagnant comparable sales often signals that bottom-line improvements stem from cost-cutting measures or inventory management instead of organic demand growth. For Academy Sports, the persistent struggle to drive positive comps suggests that macroeconomic pressures on consumer discretionary spending may be offsetting the temporary tailwinds provided by major sporting events like the World Cup.

Analysts are looking for evidence that the retailer can sustain momentum while consumers remain selective with non-essential purchases. While the company's guidance hike reflects confidence in its internal efficiency, the market is focused on whether the retailer can return to consistent, positive top-line growth in the coming quarters.