11:25 AM EDT, 09/02/2025 (MT Newswires) -- Academy Sports and Outdoors' ( ASO ) fiscal second-quarter earnings unexpectedly declined year over year, although the sporting goods retailer lifted its full-year bottom-line outlook as it said it will be able to offset the planned impact of tariffs.

The company posted adjusted earnings of $1.94 a share for the quarter ended Aug. 2, down from $2.03 the year before and missing the FactSet-polled consensus for an increase to $2.14. The stock fell 5.6% in Tuesday trade.

Sales rose 3.3% to $1.6 billion, nearly in line with Wall Street's view. Comparable sales edged 0.2% higher, defying expectations for a decrease of 0.8%, compared with a 6.9% drop reported for the prior-year quarter.

"We were pleased to see sales inflect to a positive comp in the second quarter, driven by steady improvements in the business that are a result of the progress we continue to make against our strategic initiatives," Chief Executive Steve Lawrence said in a statement.

For fiscal 2025, Academy Sports now anticipates adjusted EPS in a range of $5.60 to $6.30, up from its previous outlook of $5.45 to $6.25. Sales are pegged at $6 billion to $6.27 billion, lifting its prior low end of $5.97 billion. The Street is currently looking for non-GAAP EPS of $5.81 and sales of $6.1 billion.

Comparable sales are expected to be down 3% to up 1% for the ongoing fiscal year, compared with the previous guidance for a 4% decline at the low end. The market view is for a 1.4% decrease in same-store sales.

The retailer said it has mostly mitigated the planned impact of current tariffs for the fiscal year by taking actions including raising prices and partnering with vendors to absorb incremental costs.

"We believe we now have additional visibility into tariff impacts and are well positioned to mitigate them," Chief Financial Officer Carl Ford said.

Truist Securities, however, flagged a potential downside in the second half due to macro volatility.

"While we believe the company is executing well on things that they can control, we remain more cautious about the potential downside in (the second half) due to macro volatility," Truist said in a client note.

Last week, the US Court of Appeals for the Federal Circuit ruled that most of President Donald Trump's global tariffs are illegal, saying the law he invoked to implement them doesn't grant him the power to do so. The court allowed the duties to remain in place through Oct. 14, Reuters reported.

Trump's sweeping new tariffs on imports from several trading partners went into effect last month.

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