$20 Million Exit: Why Academy Sports' $1.4 Billion Third Quarter Likely Wasn't Enough

Core Insights - Impala Asset Management has completely divested its stake in Academy Sports and Outdoors, selling 397,115 shares for an estimated value of $19.86 million [1][2]. Company Overview - Academy Sports and Outdoors operates as a retailer of sporting goods and outdoor recreational products in the United States, with retail locations in over a dozen contiguous states [5]. - The company offers private label brands including Magellan Outdoors, BCG, O'rageous, Outdoor Gourmet, and Freely [5]. Financial Performance - For the trailing twelve months (TTM), Academy reported revenue of $6.01 billion and a net income of $376.71 million [4]. - The company’s dividend yield stands at 0.88%, and the stock price was $57.73 as of market close on February 12, 2026 [4]. - In the third quarter, Academy reported net sales of $1.38 billion, a 3% increase, with diluted EPS rising 14% to $1.05 [7]. - Gross margin improved to 35.7% from 34.0%, and operating income increased to $100.4 million [7]. - Year-to-date net income is $243.1 million, reflecting a 14.6% decline from the previous year, with comparable sales remaining negative [7]. Market Position and Investor Sentiment - The divestment by Impala Asset Management suggests a shift in investment strategy, indicating a preference for commodity-focused investments over retail exposure [6][10]. - Academy's stock has underperformed the S&P 500 by 2.03 percentage points, despite a 10.9% increase in share price over the past year [9]. - The company is experiencing growth in store openings and a 22.2% increase in eCommerce, but the capital reallocation indicates a broader macroeconomic positioning rather than a reflection of company fundamentals [10].