Financial Analysis

Commitments and Contingencies Technology Related and Other Commitments As of May 2, 2026, we have obligations under technology-related, construction and other contractual commitments in the amount of $234.3 million. Of such commitments, approximately $127.0 million is payable in the next 12 months. Other Contingencies During 2025, the Company entered into an agreement to sell a portion of the rights to potential tariff relief litigation claims, which was determined to be accounted for under ASC 470. As of May 2, 2026, the $10.5 million proceeds from the sale are recorded within Other Long-term Liabilities on the Condensed Consolidated Balance Sheets. In February 2026, the Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act. As of May 2, 2026, the Company has not recognized a receivable for tariff refund claims or released the $10.5 million of proceeds mentioned above from the Condensed Consolidated Balance Sheet, as the refunds were not realized or realizable and remain subject to further legal, regulatory, and administrative developments. To the extent any tariff refunds are realized or realizable, the Company does not expect to receive refunds associated with the portion of rights sold. Financial Guarantees During the normal course of business, we enter into contracts that contain a variety of representations and warranties and provide general indemnifications. The maximum exposure under these …

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The following table sets forth the approximate amount of sales by merchandise divisions for the periods presented (amounts in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Merchandise division sales (1) Outdoors $ 427,351 $ 382,554 Sports and recreation 355,945 335,064 Apparel 348,347 332,644 Footwear 300,812 292,691 Total merchandise sales (2) 1,432,455 1,342,953 Other sales (3) 9,548 8,456 Net Sales $ 1,442,003 $ 1,351,409 (1) Certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen weeks ended May 3, 2025, for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed. (2) E-commerce sales represented 11.0% and 10.0% of merchandise sales for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. (3) Other sales consisted primarily of the gift card breakage income, credit card bounties and royalties, shipping income, sales return allowance and other items.

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Share-Based Compensation On September 29, 2020, the ASO, Inc. Board of Directors adopted the 2020 Omnibus Incentive Plan (the 2020 Omnibus Incentive Plan), which provides for the grant of certain equity incentive awards (each, an Award) and became effective on October 1, 2020. The plan reserved a total of 5,150,000 shares of common stock for issuance. On June 1, 2023, our stockholders approved the First Amendment to the 2020 Omnibus Incentive Plan, which, among other changes, increased the number of shares available for issuance thereunder by 2,600,000 shares. As of May 2, 2026, there were 2,932,607 shares that were authorized and available for future issuance under the 2020 Omnibus Incentive Plan. On September 29, 2020, the ASO, Inc. Board of Directors adopted the 2020 Employee Stock Purchase Plan (the ESPP), which became effective on October 1, 2020. We have reserved a total of 2,000,000 shares and as of May 2, 2026, there were 1,342,080 shares authorized and available for future issuance under the ESPP. Equity compensation expense was $11.1 million and $7.5 million for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. These costs are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Income. For Award grants during the periods presented, for team members that meet the age and service requirement for retirement eligibility (as defined in the award agreement), such Awards do not require the continued employm …

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Fair Value Measurements Fair value is defined as an exit price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Authoritative guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of the assets and liabilities. The fair value measurements are classified as either: Level 1 which represents valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 which represents valuations based on quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 which represents valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy in which the fair value measurement is classified in i …

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Long-Term Debt Our debt consisted of the following (amounts in thousands) as of: May 2, 2026 January 31, 2026 May 3, 2025 ABL Facility, due March 2029 $ $ $ Term Loan, due November 2027 85,000 85,750 88,000 Notes, due November 2027 400,000 400,000 400,000 Total debt 485,000 485,750 488,000 Less current maturities (3,000) (3,000) (3,000) Less unamortized discount on Term Loan (194) (227) (327) Less deferred loan costs (1) (1,486) (1,730) (2,464) Long-term debt, net $ 480,320 $ 480,793 $ 482,209 (1) Deferred loan costs are related to the Term Loan and Notes. ABL Facility Academy, Ltd., as borrower, and certain wholly-owned subsidiaries, as guarantors, entered into an asset-based revolving $1 billion credit facility, dated March 8, 2024, with JPMorgan Chase Bank, N.A., as the administrative agent and collateral agent and other lenders party thereto (as amended to date, the ABL Facility). Borrowings, if any, under the ABL Facility bear interest, at our election, at adjusted term secured overnight financing rate (Adjusted Term SOFR) plus a margin of 1.25% to 1.75%. The ABL Facility also provides a fee applicable to the unused commitments of 0.375%. The terms and conditions of the ABL Facility also require that we prepay outstanding loans under the ABL Facility under certain circumstances. As of May 2, 2026, no future prepayments of outstanding loans have been triggered under the terms and conditions of the ABL Facility. As of May 2, 2026, we had outstanding letters of credit of ap …

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In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is evaluating the impact of adopting ASU 2024-03 on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which requires removal of all references to prescriptive and sequential software development stages. The new guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, and should be applied on a prospective transition approach, a modified transition approach, or a retrospective transition approach. The Company is evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic …

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Net Sales Revenue from merchandise sales is recognized, net of sales tax, when the Companys performance obligation to the customer is met, which is when the Company transfers control of the merchandise to the customer. Store merchandise sales are recognized at the point of sale and e-commerce sales are recognized upon delivery to the customer. The following table sets forth the approximate amount of sales by merchandise divisions for the periods presented (amounts in thousands): Thirteen Weeks Ended May 2, 2026 May 3, 2025 Merchandise division sales (1) Outdoors $ 427,351 $ 382,554 Sports and recreation 355,945 335,064 Apparel 348,347 332,644 Footwear 300,812 292,691 Total merchandise sales (2) 1,432,455 1,342,953 Other sales (3) 9,548 8,456 Net Sales $ 1,442,003 $ 1,351,409 (1) Certain products and categories were recategorized amongst various categories and divisions, respectively, to better align with our current merchandising strategy and view of the business. As a result, we have reclassified sales between divisions in the thirteen weeks ended May 3, 2025, for comparability purposes. This reclassification is in divisional presentation only and did not impact the overall net sales balances previously disclosed. (2) E-commerce sales represented 11.0% and 10.0% of merchandise sales for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. (3) Other sales consisted primarily of the gift card breakage income, credit card bounties and royalties, shipping income, …

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Segment Information The Companys retail operations represent one operating segment and one reportable segment, which derives revenues from customers by selling full-line sporting goods and outdoor recreational products. The Companys retail stores and online selling channels sell similar products and services, use similar selling processes, and sell to similar classes of customers. See Note 1 to the consolidated financial statements for information related to the products and services offered as well as business operations. The accounting policies of the Companys single reportable segment are the same as those described in the summary of significant accounting policies in Note 2 to the consolidated financial statements. All intercompany transactions within the single reportable segment are eliminated upon consolidation. The Companys chief operating decision maker (the CODM) is the Chief Executive Officer. The CODM allocates resources and assesses performance at a Company level using consolidated net income, which is a GAAP measure, as reported on the Condensed Consolidated Statements of Income. The CODM evaluates the Company's assets as reported on the Company's Condensed Consolidated Balance Sheets. The CODM evaluates significant segment expenses and makes decisions about the retail business based on the cost of goods we sell and the selling, general, and administrative expenses needed to sell those goods as reported on the Condensed Consolidated Statements of Income. See the …

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Summary of Significant Accounting Policies The accompanying unaudited financial statements of the Company have been prepared as though they were required to be in accordance with Rule 10-01 of Regulation S-X for interim financial statements, however, they do not include all information and footnotes required by United States generally accepted accounting principles (GAAP) for complete financial statements. Certain information and footnote disclosures normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended January 31, 2026, as filed with the Securities and Exchange Commission (the SEC) on March 17, 2026 (the Annual Report). The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the thirteen weeks ended May 2, 2026 are not necessarily indicative of the results that will be realized for the fiscal year ending January 30, 2027 or any other period. The balance sheet as of January 31, 2026 ha …

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Subsequent Events Our management evaluated events or transactions that occurred after May 2, 2026 through June 10, 2026 (the date the consolidated financial statements were issued), and identified the following events: Debt Refinancing On May 14, 2026, Academy, Ltd., a wholly-owned subsidiary of the Company (the Issuer), completed a refinancing transaction that included (i) the issuance of the 2026 Senior Secured Notes (as defined below) and (ii) an amendment to its asset-based revolving credit facility (the ABL Facility). The Company used the net proceeds from the 2026 Senior Secured Notes to fully redeem the Notes, repay the Term Loan in full, pay related fees and expenses, and for general corporate purposes. 2026 Senior Secured Notes On May 14, 2026, the Issuer issued $500 million aggregate principal amount of its 5.875% Senior Secured Notes due 2031 (the 2026 Senior Secured Notes) in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the Securities Act). The 2026 Senior Secured Notes are secured by first-priority liens on substantially all personal property of the Issuer and the guarantors (other than ABL Priority Collateral (as defined in the ABL Amendment, see below)) and by second-priority liens on ABL Priority Collateral, in each case subject to permitted liens. The 2026 Senior Secured Notes are governed by an Indenture, dated as of May 14, 2026 (the Indenture) among the Issuer, the guarantors party thereto and U.S …

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