Question · Q2 2026
Pedro Teixeira inquired about the assumptions behind the updated guidance, specifically regarding operating leverage in the second half of the year, and whether it stems from gross margin improvements or a slower pace of SG&A investments. He also asked how Academy Sports + Outdoors is mitigating tariff impacts more effectively than peers.
Answer
CFO Carl Ford stated that SG&A deleverage for the full year is expected to be around 100 basis points, with Q2 at 150 basis points driven by growth initiatives. He noted a gross margin target of 34.0%-34.5% for the year, up from 33.9% last year. CEO Steve Lawrence detailed tariff mitigation tactics, including vendor partnerships, sourcing diversification, adjusting unit buys, pulling in domestic inventory, and utilizing pricing optimization tools like Revionics, emphasizing Academy's maintained value proposition.