Move supports Back to the Bricks strategy and leans into Company's American manufacturing footprint
, /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson" or the "Company") (NYSE: HOG) today announced that it is bringing production of the Revolution® Max platform for North America back to the United States as part of the Company's Back to the Bricks strategy. The move brings machining, powertrain assembly, painting, and final vehicle assembly work back to Harley-Davidson facilities in Pennsylvania and Wisconsin, supporting skilled union jobs and strengthening the Company's American manufacturing footprint.
The production transition is expected to be completed ahead of the start of Model Year 2028 production in 2027. Harley-Davidson expects to manufacture over 100,000 motorcycles out of the Company's York, Pennsylvania facility in 2027.
The Company shared the following statement:
For more than a century, Harley-Davidson has invested in American manufacturing, skilled workers, and the communities that build our motorcycles. Today, we're proud to announce another step forward by bringing production of the Revolution® Max platform for North America—including Pan America, Sportster® S, and Nightster models—back to the United States. This move returns machining, powertrain assembly, painting, and final vehicle assembly work to our facilities in Pennsylvania and Wisconsin, supporting dozens of additional American manufacturing and union jobs.
The Trump Administration's changes to U.S. trade policy, combined with shifts in the global trade environment, have created new opportunities for companies to invest in domestic manufacturing. For Harley-Davidson under our new CEO Artie Starrs, this means we are able to lean even further into our American manufacturing footprint and build more motorcycles here at home. This decision, which has been months in the making, reflects our commitment to strengthening Harley-Davidson's manufacturing base for the long term.
Harley-Davidson has built motorcycles that represent freedom, independence, and American craftsmanship for 123 consecutive years. That legacy was built by generations of employees, many of them union workers, whose skill and dedication continue to define this company today. We are grateful to our employees, our network of 500+ U.S. dealers, and most importantly our riders for their continued support as we get back to basics that have made Harley-Davidson an enduring symbol of freedom and the most iconic motorcycle brand in the world.
Bill Davidson, Vice President, Special Advisor to the CEO and Global Brand Ambassador, said, "My family has spent generations working in this company, and I've seen firsthand the pride, craftsmanship, and hard work that go into building Harley-Davidson motorcycles in America. My father, Willie, my sister, Karen, and I are incredibly excited about what's happening at Harley-Davidson. Bringing this work back home is another important step in getting back to the bricks, investing in American manufacturing, and building on the values that have made Harley-Davidson one of the most iconic brands in the world."
Company Background
Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, Parts & Accessories, experiences, riding gear and apparel. What We Make: The World's Best Motorcycles. Period. Who We Serve: Motorcycle Riders Worldwide. Why We Do It: To Protect and Grow Motorcycle Culture. What We Stand For: Life, Liberty and the Pursuit of Happiness. Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and has a controlling interest in Harley-Davidson Financial Services and LiveWire Group, Inc. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. LiveWire is committed to developing the technology of the future and investing in the capabilities needed to lead the transformation of motorsports. Learn more at harley-davidson.com.
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "projects," "may," "will," "estimates," "targets," "intends," "forecasts," "seeks," "sees," "should," "feels," "commits," "assumes," "envisions," or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to: (a) execute its business plans and strategies, including the Company's new strategic plan announced in the second quarter of 2026, successfully execute its approach to a full enterprise economic model, and strengthen its existing businesses while allowing for growth; (b) effectively move production at all or on expected timelines, including production of the Revolution® Max platform for North America back to the United States; (c) manufacture motorcycles at or near its production goals; and (d) strengthen its manufacturing capabilities.
The logo of American motorcycle manufacturer Harley-Davidson is seen on a motobike at an Harley-Davidson dealership in Paris, France, April 8, 2025. REUTERS/Gonzalo Fuentes Purchase Licensing Rights, opens new tab
June 9 (Reuters) - Harley-Davidson (HOG.N), opens new tab said on Tuesday it is bringing production of the Revolution Max engine platform for North America back to the U.S.
The motorbike maker uses the engine in its Sportster S, Nightster and Pan America 1250 models.
Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.
The move also brings machining, powertrain assembly, painting, and final vehicle assembly work back to Harley-Davidson's facilities in Pennsylvania and Wisconsin.
The company said its production transition is expected to be completed ahead of the start of Model Year 2028 production in 2027.
It expects to make over 100,000 motorcycles out of its York, Pennsylvania facility in 2027.
Reporting by Parth Chandna; Editing by Sahal Muhammed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Harley-Davidson dealers are accusing rival Indian Motorcycle of engaging in “attack-based marketing” after the company posted an advertisement mocking CEO Artie Starrs — a move that has fueled speculation about whether a broader anti-Harley social media campaign is benefiting the competitor.
The controversy erupted after Indian Motorcycle posted a commercial on Instagram that opened by noting Harley-Davidson had hired “a CEO from a pizza company,” referring to Starrs’ previous role as CEO of Pizza Hut.
The ad also criticized Harley’s electric-motorcycle strategy, overseas manufacturing and past diversity, equity and inclusion initiatives.
Harley-Davidson is facing renewed criticism from conservative influencers as dealers rally behind CEO Artie Starrs and the company’s new leadership team. Getty Images The commercial landed as conservative influencer Robby Starbuck and UFC fighter Sean Strickland have intensified criticism of Harley-Davidson, urging riders to abandon the iconic Milwaukee motorcycle maker over what they characterize as the company’s embrace of “woke” corporate policies.
Harley dealers told the Milwaukee Business Journal that the timing of its rival’s ad campaign and the broader social-media attacks raised questions about whether the efforts were connected.
“The personal attacks on Starrs are below-the belt,” Jeff Binkert, president of House of Harley-Davidson in Greenfield, told the Business Journal.
Harley-Davidson CEO Artie Starrs has become the target of criticism from conservative influencers and rival Indian Motorcycle. AP/Business Wire “Regardless of who created them, I believe the motorcycle industry is best served when manufacturers compete on products, innovation, dealer support and customer experience — not personal attacks,” Binkert said.
Indian Motorcycle’s ad contrasted Starrs with its own CEO Mike Kennedy, describing Kennedy as “a lifetime industry veteran and an avid motorcycle rider.”
Kennedy, a former Harley executive, told the Milwaukee Business Journal last month that recent turnover in the company’s executive ranks presented an opportunity for Indian to gain market share.
“There’s short-term vulnerability there,” Kennedy said. “We think there’s significant market share to be gained.”
The ad appeared to spark backlash among some Harley riders and dealers, who accused Indian of trying to capitalize on the anti-Harley influencer campaign rather than competing on products.
Conservative influencer Robby Starbuck has renewed his criticism of Harley-Davidson. YouTube/@RobbyStarbuck Indian rejected the criticism and defended the commercial.
“Indian Motorcycle did not manufacture the criticism of Harley-Davidson. Riders were already having that conversation,” an Indian Motorcycle spokesperson said in a statement.
“Harley’s dealer group calls our ad ‘attack-based’ because they do not want to call it false. We stand by it. The point was not pizza. The point was leadership, judgment and Harley’s understanding of the riders it claims to represent.”
The company also argued that Harley previously targeted Indian customers through its own “Indian Conquest” program and said competition between the brands was nothing new.
“We believe Indian builds the better motorcycle. We believe Indian is closer to the rider culture that built American motorcycling,” the spokesperson said.
Indian Motorcycle says its criticism of Harley-Davidson reflects concerns already being voiced by riders about the company’s leadership and strategy. Getty Images Neither Kennedy nor Indian Motorcycle’s public-relations firm responded to requests for additional comment. Harley-Davidson declined to comment.
The dispute comes as Starbuck renews his campaign against Harley-Davidson, arguing that the company has failed to change course despite rolling back DEI-related initiatives last year.
In recent remarks, Starbuck accused Harley of elevating executives whom he says previously supported DEI initiatives, LGBTQ-related programs and educational materials discussing issues such as white privilege, gender identity and intersectionality.
Starbuck has focused much of his criticism on Starrs and Chief Brand Officer Marcus Fischer, arguing that their backgrounds are inconsistent with traditional biker culture.
Starbuck denied any involvement by Indian Motorcycle or outside sponsors.
He told The Post neither Indian nor anyone else sponsored his recent investigation into Harley-Davidson’s leadership and policies.
The iconic Milwaukee motorcycle maker has become the focus of a growing dispute involving influencers, dealers and rival manufacturer Indian Motorcycle. Getty Images “The greatest attack on Harley Davidson in the long history of the company was not waged by my hands,” Starbuck said in an email.
“It was waged by executives who understand more about pronouns than they do about their riders.”
Starbuck also defended his criticism of Harley’s leadership, saying: “Dealers should ask if their hiring was really a wise fiduciary choice for the company.”
He added that he believes Harley’s board remains out of touch with its customers and said his reporting on the company will continue.
“At this point, it’s clear the board doesn’t understand the customers,” Starbuck said.
The Harley-Davidson Council of the National Powersports Dealer Association on Wednesday issued a public letter backing Starrs and the company’s leadership team while condemning what Chairman George Gatto called “attack-based marketing.”
Gatto described the Indian commercial and anti-Harley influencer posts as “reprehensible,” “contemptible” and “downright dirty.”
, /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy" or the "Company") (Nasdaq: ASO), a leading full-line sporting goods and outdoor recreation retailer, plans to release its first quarter fiscal 2026 financial results before the market opens on Tuesday, June 9, 2026.
Academy will host a live conference call that day at 10:00 a.m. Eastern Time to discuss the financial results. Participants interested in accessing the live call can dial 1-877-407-3982 (U.S.) or 1-201-493-6780 (International). The conference passcode is 13760700. A webcast of the call, the earnings release, and any related materials can be accessed on the Company's website at investors.academy.com. To listen to the call, please dial in or access the website at least 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available for approximately 30 days by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering passcode 13760700.
A replay of the webcast will be archived at investors.academy.com for approximately 30 days.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.
Media inquiries:
Meredith Klein, Vice President of Communications
346.823.6615
[email protected]
Investor inquiries:
Dan Aldridge, Vice President of Investor Relations
832.739.4102
[email protected]
Ionis Pharmaceuticals, Inc. (Nasdaq: IONS) partner GSK today announced positive pivotal data for bepirovirsen, an investigational antisense oligonucleotide (ASO) for the treatment of chronic hepatitis B (CHB). Results from the two Phase 3 trials, B-Well 1 and B-Well 2, were simultaneously published in the New England Journal of Medicine and presented at the European Association for the Study of the Liver (EASL) congress. GSK licensed bepirovirsen from Ionis and the two companies have collaborated on its development.
Pooled data from both trials showed that six-month treatment with bepirovirsen achieved a statistically significant and clinically meaningful 19% functional cure response rate (233 of 1,220 vs. 0 of 614 in the placebo group, with p<0.001 in both trials) in the overall study population (adults with ≤3000 IU/ml hepatitis B surface antigen (HBsAg) level), meeting the primary endpoints. In a key secondary endpoint, a functional cure rate of 26% (200 of 768 vs. 0 of 393 in the placebo group, with p<0.001 in both trials) was achieved in participants with ≤1000 IU/ml HBsAg level, a group that represents approximately 45% of diagnosed CHB cases globally. The current standard of care typically requires lifelong therapy, with functional cure rates achieved in less than 1% of patients.
Functional cure occurs when the hepatitis B virus DNA and HBsAg are undetectable in the blood for at least six months after stopping all treatment. This indicates the disease is being controlled by the immune system without medication. Notably, in an exploratory analysis, 49% of bepirovirsen recipients achieved a quantitative hepatitis B surface antigen (qHBsAg) of ≤100 IU/mL one year after the end of treatment. Medical literature has linked this level of low surface antigen with increased immune control and improved patient outcomes. Moreover, 23% of all bepirovirsen recipients (283 of 1220 vs 0 of 614 in the placebo group; p<0.001 in both trials) and 31% of bepirovirsen recipients with baseline HBsAg ≤1000 IU/mL % (237 of 768 vs 0 of 393 in the placebo group; p<0.001 in both trials) achieved a sustained DNA lower limit of quantification (
The trials showed an acceptable safety and tolerability profile consistent with other studies of bepirovirsen. The three most frequently observed adverse events were injection site erythema, local pain and temporary rise in the blood level of a liver enzyme.
“These results represent an important advance for the millions of people living with chronic hepatitis B, for whom there is currently no approved therapy that can achieve a meaningful functional cure,” said Brett P. Monia, Ph.D., chief executive officer, Ionis. “At Ionis, we are focused on translating our science into breakthrough medicines with the potential to make a real difference for people living with serious conditions, like chronic hepatitis B. Bepirovirsen is uniquely positioned to address this persistent viral infection through its potential to reduce hepatitis B virus replication, suppress hepatitis B surface antigen and stimulate the immune system. Thank you to the patients, families and clinicians who participated in these important studies.”
Results from the two trials are summarized in Table 1.
Table 1: Functional cure rate at Week 72 in B-Well 1 and B-Well 2 by patient segment
Endpoint
Patients with baseline HBsAg
≤3000 IU/mL
Patients with baseline HBsAg
≤1000 IU/mL
FC response rate at Week 72, 6 months after discontinuing all treatments
Primary confirmatory endpoint
19% vs. 0% (placebo)
233 of 1,220 vs. 0 of 614
B-Well 1: 20% vs. 0%
[127 of 650 vs. 0 of 328]
B-Well 2: 19% vs. 0%
[106 of 570 vs. 0 of 286]
Ranked secondary endpoint
26% vs. 0% (placebo)
200 of 768 vs. 0 of 393
B-Well 1: 25% vs. 0%
[105 of 426 vs. 0 of 214]
B-Well 2: 28% vs. 0%
[95 of 342 vs. 0 of 179]
Bepirovirsen is currently under priority review by the U.S. Food and Drug Administration (FDA) with both Breakthrough and Fast Track Designation. It is also under review by regulatory authorities in Europe, Japan with SENKU designation and China with Breakthrough Therapy and Priority Review designation. GSK anticipates the first regulatory decisions in Q3 2026 and launch preparations are underway.
GSK licensed bepirovirsen from Ionis in 2019 under a collaborative development and licensing agreement. Under the terms of the agreement, Ionis has received an upfront payment, license fee and development and regulatory milestone payments and is eligible to receive additional regulatory and sales milestone payments as well as tiered royalties of 10-12% on net sales of bepirovirsen.
About B-Well 1 and B-Well 2
B-Well 1 (NCT05630807) and B-Well 2 (NCT05630820) trials are global multi-center, randomized, double-blind, placebo-controlled trials conducted in 29 countries. They assessed the efficacy, safety, pharmacokinetic profile, and durability of functional cure in nucleos(t)ide analogue-treated adult participants with chronic hepatitis B and baseline surface antigen (HBsAg) ≤3000 IU/ml. The primary endpoint assessed the proportion of participants achieving functional cure in patients with baseline HBsAg ≤3000 IU/ml. A key ranked secondary endpoint evaluated functional cure in participants with baseline HBsAg ≤1000 IU/ml. Functional cure is defined as HBsAg being undetectable in the blood for at least 24 weeks after stopping all treatment, indicating that the disease is controlled by the immune system without medication.
About Chronic Hepatitis B (CHB)
Hepatitis B is a viral infection that can cause both acute and chronic liver disease. Chronic hepatitis B occurs when the immune system is unable to clear the virus, resulting in long-lasting infection that affects more than 240 million people worldwide, including 1.7 million people in the U.S. and 75 million in China. The disease causes approximately 1.1 million deaths each year, and accounts for approximately 56% of liver cancer cases globally. Currently, many patients often require lifelong antiviral therapy for viral suppression, making functional cure a critical goal in disease management.
About bepirovirsen
Bepirovirsenis an investigational antisense oligonucleotide (ASO) designed to recognize and inhibit the production of the genetic components (i.e. RNA) of the hepatitis B virus that can lead to chronic disease, potentially allowing a person’s immune system to regain control. Bepirovirsen reduces the production of RNA and viral proteins associated with HBV, suppresses the level of hepatitis B surface antigen (HBsAg) in the blood, and stimulates the immune system to increase the chances of a durable and sustained response.
About Ionis Pharmaceuticals, Inc.
For three decades, Ionis has invented medicines that bring better futures to people with serious diseases. Ionis has marketed medicines and a leading pipeline in neurology, cardiometabolic and other areas of high patient need. As the pioneer in RNA-targeted medicines, Ionis continues to drive innovation in RNA therapies in addition to advancing new approaches in gene editing. A deep understanding of disease biology and industry-leading technology propels our work, coupled with a passion and urgency to deliver life-changing advances for patients. To learn more about Ionis, visit Ionis.com and follow us on X (Twitter), LinkedIn and Instagram.
Ionis Forward-looking Statements
This press release includes forward-looking statements regarding Ionis' business and the therapeutic and commercial potential of bepirovirsen, our commercial medicines, additional medicines in development and technologies and our expectations regarding development and regulatory milestones. Any statement describing Ionis' goals, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties including those inherent in the process of discovering, developing and commercializing medicines that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such medicines. Ionis' forward-looking statements also involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although Ionis' forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Ionis. Except as required by law, we undertake no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements. These and other risks concerning Ionis' programs are described in additional detail in Ionis' annual report on Form 10-K for the year ended December 31, 2025, and most recent Form 10-Q, which are on file with the Securities and Exchange Commission. Copies of these and other documents are available from the Company. In this press release, unless the context requires otherwise, "Ionis," "Company," "we," "our" and "us" all refer to Ionis Pharmaceuticals and its subsidiaries.
Ionis Pharmaceuticals® is a trademark of Ionis Pharmaceuticals, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260527201380/en/
Wall Street expects a year-over-year increase in earnings on higher revenues when Academy Sports and Outdoors, Inc. (ASO - Free Report) reports results for the quarter ended April 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on June 9, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of +23.7%.
Revenues are expected to be $1.44 billion, up 6.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.27% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Academy Sports and Outdoors?For Academy Sports and Outdoors, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.91%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Academy Sports and Outdoors will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Academy Sports and Outdoors would post earnings of $2.03 per share when it actually produced earnings of $1.97, delivering a surprise of -2.96%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Academy Sports and Outdoors appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street analysts expect Academy Sports and Outdoors, Inc. (ASO - Free Report) to post quarterly earnings of $0.91 per share in its upcoming report, which indicates a year-over-year increase of 19.7%. Revenues are expected to be $1.44 billion, up 6.5% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Academy Sports and Outdoors metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts forecast 'Net Sales- Merchandise Division Sales- Outdoors' to reach $383.15 million. The estimate indicates a year-over-year change of +3%.
The collective assessment of analysts points to an estimated 'Net Sales- Merchandise Division Sales- Sports and recreation' of $360.84 million. The estimate indicates a change of +4.4% from the prior-year quarter.
Analysts predict that the 'Net Sales- Total Merchandise Sales' will reach $1.39 billion. The estimate indicates a year-over-year change of +3.5%.
It is projected by analysts that the 'Net Sales- Merchandise Division Sales- Footwear' will reach $303.51 million. The estimate indicates a year-over-year change of +3.7%.
According to the collective judgment of analysts, 'Net Sales- Merchandise Division Sales- Apparel' should come in at $343.00 million. The estimate suggests a change of +3.1% year over year.
The consensus estimate for 'Stores - EOP' stands at 325 . Compared to the current estimate, the company reported 303 in the same quarter of the previous year.
View all Key Company Metrics for Academy Sports and Outdoors here>>>
Over the past month, shares of Academy Sports and Outdoors have returned -4.9% versus the Zacks S&P 500 composite's +4.6% change. Currently, ASO carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
, /PRNewswire/ -- Academy Sports and Outdoors, Inc. (the "Company" or "Academy") (Nasdaq: ASO) announced today that on June 4, 2026, its Board of Directors declared a quarterly cash dividend of $0.15 per share of the Company's common stock with respect to the fiscal quarter ended May 2, 2026. The quarterly cash dividend is payable on July 16, 2026, to stockholders of record as of the close of business on June 18, 2026.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All," fulfilled through a localized merchandising strategy and value proposition that connects with a broad range of consumers. Academy's product assortment focuses on outdoor, apparel, sports & recreation, and footwear through leading national brands and private label brands.
For more information, visit www.academy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. The forward-looking statements include, among other things, statements regarding the payment of the dividend, including the timing and amount thereof, the Company's expectations regarding its future performance, and the Company's future financial condition to support future dividend growth, and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to factors that are set forth in Academy's filings with the U.S. Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.
Media inquiries:
Meredith Klein, Vice President of Communications
346.826.6615
[email protected]
Investor inquiries:
Dan Aldridge, Vice President of Investor Relations
832.739.4102
[email protected]
Academy Sports + Outdoors Announces Quarterly Cash Dividend PR Newswire
KATY, Texas, June 5, 2026
, /PRNewswire/ -- Academy Sports and Outdoors, Inc. (the "Company" or "Academy") (Nasdaq: ASO) announced today that on June 4, 2026, its Board of Directors declared a quarterly cash dividend of $0.15 per share of the Company's common stock with respect to the fiscal quarter ended May 2, 2026. The quarterly cash dividend is payable on July 16, 2026, to stockholders of record as of the close of business on June 18, 2026.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All," fulfilled through a localized merchandising strategy and value proposition that connects with a broad range of consumers. Academy's product assortment focuses on outdoor, apparel, sports & recreation, and footwear through leading national brands and private label brands.
For more information, visit www.academy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future performance. The forward-looking statements include, among other things, statements regarding the payment of the dividend, including the timing and amount thereof, the Company's expectations regarding its future performance, and the Company's future financial condition to support future dividend growth, and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to factors that are set forth in Academy's filings with the U.S. Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.
Media inquiries:
Meredith Klein, Vice President of Communications
346.826.6615 [email protected]
Investor inquiries:
Dan Aldridge, Vice President of Investor Relations
832.739.4102 [email protected]
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Academy Sports and Outdoors 16‑week momentum reversal and improving comps signal a shift from decline to recovery, setting up a potential narrative reset as Q1 FY26 approaches. Margin expansion toward 34.5–35% and renewed sales strength—supported by loyalty, online growth, and the Jordan launch—strengthen the case for a durable turnaround. With FY26 EPS near $6.29 and a forward P/E of 8.3, ASO trades at a steep discount to DKS; guidance upside and margin confirmation could drive meaningful re‑rating.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) will release earnings for its first quarter before the opening bell on Tuesday, June 9.
Analysts expect the Katy, Texas-based company to report quarterly earnings of 92 cents per share, up from 76 cents per share in the year-ago period. The consensus estimate for Academy Sports and Outdoors' quarterly revenue is $1.44 billion (it reported $1.35 billion last year), according to Benzinga Pro.
On June 5, Academy Sports and Outdoors declared a quarterly cash dividend of 15 cents per share.
Shares of Academy Sports and Outdoors fell 0.2% to close at $51.67 on Monday.
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First Quarter Sales Growth of 6.7%; Comparable Sales Growth of 2.9%
eCommerce Sales Increase of 17.4%
New Stores Comp Positive High Single Digits
First Quarter Diluted GAAP EPS of $0.80; up 17.6%; Adjusted EPS of $0.93; up 22.4%
Opened Two New Stores in Ohio and Oklahoma
Company Raises Guidance Based on First Quarter Performance
KATY, Texas, June 09, 2026 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) (“Academy” or the “Company”) today announced its financial results for the first quarter ended May 2, 2026.
“We were pleased with the continued improvement in our results in Q1, with total sales up 6.7%, driven by increases in both traffic and average ticket,” said Steve Lawrence, Chief Executive Officer. “Based on our Q1 performance, we are raising the low end of our full-year guidance. While we expect inflationary pressures to continue impacting consumer spending for the remainder of the year, our goal is to build on the momentum in our business. We plan to accomplish this by methodically executing against our long-range strategies as we continue to offer customers compelling assortments at outstanding values.”
First Quarter Operating Results
($ in millions, except per share data)Thirteen Weeks Ended ChangeMay 2, 2026May 3, 2025 %Net sales$1,442.0 $1,351.4 6.7 %Comparable sales 2.9 % (3.7)% Income before income tax$68.9 $63.0 9.4 %Net income$52.7 $46.1 14.3 %Adjusted net income (1)$61.2 $51.6 18.6 %Earnings per common share, diluted$0.80 $0.68 17.6 %Adjusted earnings per common share, diluted (1)$0.93 $0.76 22.4 %(1) Adjusted net income and adjusted earnings per common share (EPS), diluted are non-GAAP measures. See “Non-GAAP Measures” and “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Thirteen Weeks Ended ChangeBalance Sheet ($ in millions)May 2, 2026 May 3, 2025 %Cash and cash equivalents$337.8 $285.1 18.5 %Merchandise inventories, net (1)$1,654.4 $1,560.0 6.1 %Long-term debt, net$480.3 $482.2 (0.4)%(1) As of May 2, 2026 inventory per store was down 6.8% in units and down 0.8% in dollars. Thirteen Weeks Ended ChangeCapital Allocation ($ in millions)May 2, 2026 May 3, 2025 %Share repurchases (1)$99.3 $99.9 (0.6)%Dividends paid$9.6 $8.7 10.3 %(1) Includes excise tax fees of $0.8 million and $0.9 million for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. Subsequent to the end of the first quarter, Academy announced that its Board of Directors on June 4, 2026 declared a quarterly cash dividend with respect to the quarter ended May 2, 2026, of $0.15 per share of common stock. The dividend is payable on July 16, 2026, to stockholders of record as of the close of business on June 18, 2026.
New Store Openings
Academy opened two new stores during the first quarter, bringing its total to 324 locations. The Company plans to open three stores during the second quarter, with the remaining 15-20 to be opened in the second half of fiscal 2026.
Academy Store Footprint Update
Time FrameTotal stores open at
beginning of the
periodNumber of stores
opened during the
periodNumber of stores
closed during the
periodTotal stores open at
end of period1st Quarter 20252985—303FY 202529824—3221st Quarter 20263222—324 Time FrameTotal gross square
feet open at
beginning of the
period (1)Gross square feet
for stores opened
during the period (1)Gross square feet
for stores closed
during the periodTotal gross square
feet at the end of
the period (1)1st Quarter 202520,604275 20,879FY 202520,6041,321—21,9251st Quarter 202621,925112—22,037(1) Figures in thousands 2026 Outlook
“The first quarter got off to a good start, and we delivered a 6.7% increase in sales, a 14.2% increase in free cash flow, a 14.3% increase in net income, and a 17.6% increase in GAAP EPS,” said Carl Ford, Executive Vice President and Chief Financial Officer. “We remain prudent about the macroenvironment and the updated fiscal 2026 guidance range reflects our belief that the consumer will remain under pressure for the duration of 2026. We're confident that our strategies will allow us to serve this consumer and deliver value to shareholders.”
Academy is providing the following updated guidance for fiscal 2026 (i.e., year ending January 30, 2027), as compared to the original guidance given on March 17, 2026. This guidance takes into account various factors, both internal and external, such as the expected benefits of the Company's growth initiatives, current consumer demand, the competitive environment, and potential impacts from inflation and other economic risks; actual results may differ materially.
Original Fiscal 2026
GuidanceUpdated Fiscal 2026
Guidance change
(at midpoint)(in millions, except per share amounts)Low endHigh endLow endHigh end2025
Actualsvs. 2025Net sales$6,175 $6,355 $6,230 $6,355 $6,053 4.0 % Sales Growth 2.0 % 5.0 % 3.0 % 5.0 % 2.0 %100.0 % Comparable sales (1) (1.0)% 2.0 % — % 2.0 % (1.5)%166.7 % Gross margin rate 34.5 % 35.0 % 34.5 % 35.0 % 34.8 %— % GAAP net income$380 $415 $390 $415 $377 6.8 % Adjusted net income (2)$410 $445 $420 $445 $393 10.1 % GAAP earnings per common share, diluted$5.65 $6.15 $5.95 $6.35 $5.54 11.0 % Adjusted earnings per common share, diluted (2)$6.10 $6.60 $6.40 $6.80 $5.78 14.2 % Diluted weighted average common shares 67 67 66 66 ~68 (3.0)% Capital Expenditures$200 $240 $200 $240 $213 3.3 % Adjusted free cash flow (2), (3)$250 $300 $250 $300 $263 4.6 % The earnings per share estimates do not include any potential future share repurchases and assume a tax rate of 22.0% to 23.0%.
(1) We define comparable sales as the percentage of period-over-period net sales increase or decrease, in the aggregate, for stores open after thirteen full fiscal months, as well as for all ecommerce sales.
(2) Adjusted net income, adjusted earnings per common share (EPS), diluted, and adjusted free cash flow are non-GAAP measures. See “Non-GAAP Measures” and “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.
(3) We have not reconciled guidance for adjusted free cash flow to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and could be significant; therefore, we are unable to provide an estimate of the most closely comparable GAAP measure at this time.
Conference Call Info
Academy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results and related matters. The call will be webcast at investors.academy.com. The following information is provided for those who would like to participate in the conference call:
U.S. callers1-877-407-3982 International callers1-201-493-6780 Passcode13760700 A replay of the conference call will be available for approximately 30 days on the Company's website.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide “Fun for All” and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.
Non-GAAP Measures
Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles (“GAAP”). The Company believes that the presentation of these non-GAAP measures is useful to investors as they provide additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company’s operating results or measuring performance in the same manner as the Company’s management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended January 31, 2026 (the “Annual Report”), filed on March 17, 2026 and our Quarterly Report for the thirteen weeks ended May 2, 2026 to be filed on June 10, 2026 (“the Quarterly Report”), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC's website at www.sec.gov.
See “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures presented in this press release to their most directly comparable GAAP financial measures.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy’s current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as “believe,” “expect,” “anticipate,” “forward,” “ahead,” “opportunities,” “plans,” “priorities,” “goals,” “future,” “short/long term,” “will,” “should,” or the negative version of these words or other comparable words. The forward-looking statements in this press release include, among other things, statements regarding the Company’s fiscal 2026 outlook under the caption “2026 Outlook,” the Company's strategic plans and financial objectives, including the implementation of such plans, the growth of the Company's business and operations, including the opening of new stores and the expansion into new markets, the Company's payment of dividends, including the timing and the amount thereof, share repurchases by the Company, and the Company's expectations regarding its future performance and future financial condition are subject to various risks, uncertainties, assumptions, or changes in circumstances that are all difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, environmental, and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and in higher interest rates, trade policy changes or additional tariffs, geopolitical tensions, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report, under the caption “Part 1A. Risk Factors,” as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Investor ContactMedia ContactDan AldridgeMeredith KleinVP, Investor RelationsVP, Communications832-739-4102346-823-6615dan.aldridge@[email protected] ACADEMY SPORTS AND OUTDOORS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)
Thirteen Weeks Ended May 2, 2026 Percentage of
Sales (1) May 3, 2025 Percentage of
Sales (1)Net sales$1,442,003 100.0 % $1,351,409 100.0 %Cost of goods sold 962,655 66.8 % 892,540 66.0 %Gross margin 479,348 33.2 % 458,869 34.0 %Selling, general and administrative expenses 404,693 28.1 % 389,604 28.8 %Operating income 74,655 5.2 % 69,265 5.1 %Interest expense, net 8,988 0.6 % 9,044 0.7 %Other income, net 3,222 0.2 % 2,807 0.2 %Income before income taxes 68,889 4.8 % 63,028 4.7 %Income tax expense 16,186 1.1 % 16,944 1.3 %Net income$52,703 3.7 % $46,084 3.4 % Earnings Per Common Share: Basic$0.82 $0.69 Diluted$0.80 $0.68 Weighted Average Common Shares
Outstanding: Basic 64,432 67,122 Diluted 65,945 68,170 (1) Column may not add due to rounding ACADEMY SPORTS AND OUTDOORS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except per share data)
May 2, 2026 January 31, 2026 May 3, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents$337,810 $330,320 $285,104 Accounts receivable - less allowance for doubtful
accounts of $1,209, $1,792 and $2,584, respectively 17,671 34,755 16,869 Merchandise inventories, net 1,654,429 1,503,756 1,560,035 Prepaid expenses and other current assets 93,249 82,457 59,757 Assets held for sale 2,957 2,957 — Total current assets 2,106,116 1,954,245 1,921,765 PROPERTY AND EQUIPMENT, NET 602,768 584,103 551,184 RIGHT-OF-USE ASSETS 1,290,110 1,234,246 1,210,516 TRADE NAME 579,860 579,766 579,165 GOODWILL 861,920 861,920 861,920 OTHER NONCURRENT ASSETS 62,826 62,756 55,873 Total assets$5,503,600 $5,277,036 $5,180,423 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable$826,338 $637,854 $849,554 Accrued expenses and other current liabilities 274,857 243,908 272,362 Current lease liabilities 152,001 147,491 137,979 Current maturities of long-term debt 3,000 3,000 3,000 Total current liabilities 1,256,196 1,032,253 1,262,895 LONG-TERM DEBT, NET 480,320 480,793 482,209 LONG-TERM LEASE LIABILITIES 1,315,590 1,261,167 1,210,095 DEFERRED TAX LIABILITIES, NET 299,309 300,654 255,912 OTHER LONG-TERM LIABILITIES 31,219 30,792 22,080 Total liabilities 3,382,634 3,105,659 3,233,191 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY : Preferred stock, $0.01 par value, authorized 50,000,000
shares; none issued and outstanding — — — Common stock, $0.01 par value, authorized 300,000,000
shares; 63,507,116; 64,945,953 and 66,466,377 issued
and outstanding as of May 2, 2026, January 31, 2026 and
May 3, 2025, respectively. 635 649 662 Additional paid-in capital 254,512 256,351 244,388 Retained earnings 1,865,819 1,914,377 1,702,182 Stockholders' equity 2,120,966 2,171,377 1,947,232 Total liabilities and stockholders' equity$5,503,600 $5,277,036 $5,180,423 ACADEMY SPORTS AND OUTDOORS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Thirteen Weeks Ended May 2, 2026 May 3, 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income$52,703 $46,084 Adjustments to reconcile net income to net cash provided by operating
activities: Depreciation and amortization 30,757 30,150 Non-cash lease expense 3,068 12,665 Equity compensation 11,100 7,542 Amortization of deferred loan and other costs 646 649 Deferred income taxes (1,345) (903) Changes in assets and liabilities: Accounts receivable, net 17,084 (110) Merchandise inventories, net (150,673) (251,195) Prepaid expenses and other current assets (10,793) 35,863 Other noncurrent assets (438) (4,566) Accounts payable 177,965 231,762 Accrued expenses and other current liabilities 12,782 24,848 Income taxes payable 17,323 16,322 Other long-term liabilities 427 8,361 Net cash provided by operating activities 160,606 157,472 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (38,903) (50,830) Purchases of intangible assets (94) (158) Net cash used in investing activities (38,997) (50,988) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of Term Loan (750) (750) Repurchase of common stock for retirement (98,412) (99,031) Proceeds from exercise of stock options 715 1,516 Taxes paid related to net share settlement of equity awards (6,026) (3,328) Dividends paid (9,646) (8,716) Net cash used in financing activities (114,119) (110,309) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 7,490 (3,825) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 330,320 288,929 CASH AND CASH EQUIVALENTS AT END OF PERIOD$337,810 $285,104 ACADEMY SPORTS AND OUTDOORS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Amounts in thousands) Adjusted EBIT
We define “Adjusted EBIT” as net income (loss) before interest expense, net, income tax expense and other adjustments included in the table below. We describe these adjustments reconciling net income (loss) to Adjusted EBIT in the following table (amounts in thousands):
Thirteen Weeks Ended May 2, 2026 May 3, 2025 Net income
$52,703 $46,084 Interest expense, net
8,988 9,044 Income tax expense
16,186 16,944 Equity compensation (a)
11,100 7,542 Adjusted EBIT
$88,977 $79,614 (a)Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures.
Adjusted Net Income and Adjusted Earnings Per Common Share
We define “Adjusted Net Income” as net income (loss) plus other adjustments included in the table below, less the tax effect of these adjustments. We define “Adjusted Earnings per Common Share, Basic” as Adjusted Net Income divided by the basic weighted average common shares outstanding during the period and “Adjusted Earnings per Common Share, Diluted” as Adjusted Net Income divided by the diluted weighted average common shares outstanding during the period. We describe these adjustments reconciling net income (loss) to Adjusted Net Income, and Adjusted Earnings Per Common Share in the following table (amounts in thousands, except per share data):
Thirteen Weeks Ended
May 2, 2026
May 3, 2025
Net income
$52,703 $46,084 Equity compensation (a)
11,100 7,542 Tax effects of these adjustments (b)
(2,584) (2,029) Adjusted Net Income
$61,219 $51,597 Earnings per common share:
Basic
$ 0.82 $0.69 Diluted
$0.80 $0.68 Adjusted earnings per common share:
Basic
$0.95 $0.77 Diluted
$0.93 $0.76 Weighted average common shares outstanding:
Basic
64,432 67,122 Diluted
65,945 68,170 (a)Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures.
(b)Represents the estimated tax effect of the total adjustments made to arrive at Adjusted Net Income.
Adjusted Net Income and Adjusted Earnings Per Common Share, Diluted, Guidance Reconciliation (amounts in millions, except per share data)
Low Range*
High Range*
Fiscal Year Ending
January 31, 2027
Fiscal Year Ending
January 31, 2027 Net Income$390 $415 Equity compensation (a) 30 30 Adjusted Net Income$420 $445 Earnings Per Common Share, Diluted$5.95 $6.35 Equity compensation (a) 0.45 0.45 Adjusted Earnings Per Common Share, Diluted$6.40 $6.80 *Amounts presented have been rounded.(a)Adjustments include non-cash charges related to equity-based compensation (as defined above), which may vary from period to period. These amounts are also tax affected. Adjusted Free Cash Flow
We define “Adjusted Free Cash Flow” as net cash provided by (used in) operating activities less net cash used in investing activities. We describe these adjustments reconciling net cash provided by operating activities to adjusted free cash flow in the following table (amounts in thousands):
Thirteen Weeks Ended May 2, 2026 May 3, 2025 Net cash provided by operating activities$160,606 $157,472 Net cash used in investing activities (38,997) (50,988) Adjusted Free Cash Flow$121,609 $106,484
Academy Sports and Outdoors, Inc. delivered strong Q1 results, with EPS of $0.93 and 2.9% same-store sales growth, alleviating consumer spending concerns. ASO's gross margin of 33.2% faced minor headwinds from tariffs and fuel costs, but inventory and SG&A management support margin improvement ahead. The company maintains a robust balance sheet, ample liquidity, and continues aggressive store expansion, supporting ongoing buybacks and a secure 1.2% dividend.
Academy Sports and Outdoors, Inc. (ASO - Free Report) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.97%. A quarter ago, it was expected that this company would post earnings of $2.03 per share when it actually produced earnings of $1.97, delivering a surprise of -2.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Academy Sports and Outdoors, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $1.44 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $1.35 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Academy Sports and Outdoors shares have added about 3.4% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Academy Sports and Outdoors?While Academy Sports and Outdoors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Academy Sports and Outdoors was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.07 on $1.65 billion in revenues for the coming quarter and $6.29 on $6.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, American Outdoor Brands, Inc. (AOUT - Free Report) , is yet to report results for the quarter ended April 2026.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -61.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
American Outdoor Brands, Inc.'s revenues are expected to be $48 million, down 22.5% from the year-ago quarter.
3 Small-Cap Stocks to Buy as the Russell 2000 Extends Its RallyAcademy Sports and Outdoors NASDAQ: ASO reported a return to comparable sales growth in its fiscal first quarter, with management pointing to gains across all major merchandise divisions, strong e-commerce growth and momentum from newer stores.
The sporting goods retailer said first-quarter net sales rose 6.7% to $1.44 billion, while comparable sales increased 2.9%. Chief Executive Officer Steve Lawrence said the results were at the high end of the range the company communicated ahead of its Analyst Day in April.
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Academy Sports Stock Sinks After Earnings: Buy the Dip or Beware?Lawrence said the quarter benefited from low single-digit positive traffic and a high single-digit increase in average unit retail, while units per transaction declined slightly. E-commerce was a standout, with sales up 17% and penetration expanding by 100 basis points.
Outdoor, sports and apparel categories drive gains Academy said all four of its divisions posted increases in the quarter. Outdoor was the best-performing category, rising 12%, led by fishing and shooting sports. Lawrence said ammunition, which had been a headwind for much of the prior year, turned positive in February and accelerated after conflict began in the Middle East. Firearms also remained a bright spot, with the company citing eight consecutive quarters of market share gains based on NICS check data as a proxy.
Academy Sports Stock is Selling at a DiscountTo build on that momentum, Lawrence said Academy launched suppressors in a limited number of stores during the quarter and plans to roll the category out to more than 100 stores by year-end. He said the category is new to Academy’s assortment and should be accretive, with high average unit retails and strong attachment rates to firearms and related accessories.
Sports and recreation sales rose 6%, helped by baseball and team sports. Lawrence also called out double-digit growth in the company’s front-end business, driven by collectible trading cards, as well as ongoing strength in outdoor speakers through Turtlebox.
Apparel increased 5%, supported by outdoor and work assortments from Carhartt, BURLEBO, Levi’s and Academy’s Magellan Outdoors brand. The company plans to add roughly 100 Ariat shops in the back half of the year. Footwear sales rose 3%, helped by cleats, Crocs, Birkenstock and performance running platforms from Nike, Adidas, New Balance and Brooks.
Margins pressured by tariffs, but earnings rise Chief Financial Officer Carl Ford said gross margin was 33.2%, down 71 basis points from the prior year. He attributed the decline primarily to tariffs, which created a 110-basis-point headwind, partially offset by 20 basis points of shrink favorability and 10 basis points from shipping and transportation-related improvements.
Ford said the first quarter is expected to represent the largest tariff impact of the year, with pressure moderating as 2026 progresses. The company maintained its full-year gross margin rate guidance of 34.5% to 35.0%.
Selling, general and administrative expenses improved to 28.1% of sales, down 77 basis points, helped by the positive comp and by lapping $7.5 million in prior-year costs tied to Nike expansion and the Jordan brand rollout. Operating income was $74.7 million. Diluted earnings per share rose 17.6% to $0.80, while adjusted earnings per share, excluding stock compensation, rose 22.4% to $0.93.
Academy ended the quarter with $338 million in cash and an untapped $1 billion revolver. Free cash flow increased 14.2% to $121.6 million. During the quarter, the company repurchased about 1.7 million shares, paid $9.6 million in dividends and continued funding investments in stores, omnichannel capabilities and technology.
Guidance raised after solid start Academy raised its annual sales outlook to a range of $6.23 billion to $6.35 billion, representing growth of 3% to 5%. Comparable sales are now expected to be flat to up 2% for fiscal 2026.
The company also raised the midpoint of its net income guidance and now expects net income of $390 million to $415 million. It projected diluted earnings per share of $5.95 to $6.35 and adjusted earnings per share of $6.40 to $6.80. Ford said the EPS guidance does not include any impact from future share repurchases.
At the midpoint of the outlook, Ford said Academy expects a roughly 1% comparable sales gain, approximately flat gross margin and modest SG&A leverage, resulting in EPS growth of more than 10% compared with fiscal 2025.
New stores, loyalty and omnichannel remain key initiatives Lawrence said new store expansion remains Academy’s top growth lever. The company opened two stores in the first quarter, in Canton, Ohio, and Muskogee, Oklahoma, and plans three more openings in the second quarter in Altoona, Pennsylvania, North Knoxville, Tennessee, and Morristown, Tennessee. Another 15 to 20 stores are expected to open in the back half of the year.
The company also highlighted the relaunch of its My Academy Rewards program, which is being integrated into its loyalty ecosystem with a three-tier structure. The base tier does not require a credit card and includes welcome and birthday offers, a reward at a $500 spend threshold and free shipping on online orders over $25. The middle tier is tied to Academy’s private-label credit card and offers 5% off purchases at Academy, while the top tier uses a co-branded Mastercard offering rewards on outside spend that can be redeemed at Academy.
Lawrence said enrollment in My Academy Rewards is up double digits year over year, with a goal of adding 2 million members this year and growing total loyalty membership to more than 15 million.
On the omnichannel side, Academy plans to expand same-day delivery partnerships to include Uber Eats and Instacart alongside DoorDash. The company also plans to migrate its site search to Google’s AI Commerce Search and Gemini Enterprise customer experience around the back-to-school period.
Management remains cautious on consumer pressure Despite the stronger quarter, executives repeatedly cited pressure on discretionary spending from high gas prices and inflation. Lawrence said second-quarter sales through Memorial Day were up low single digits in total, with comparable sales roughly flat, and said the company had seen “a little bit of a slowdown” from the consumer.
Ford described the consumer environment as bifurcated. He said higher-income consumers are increasingly shopping at Academy in search of value, with trips from consumers earning more than $100,000 up mid-single digits in the quarter. Lower-income consumers, by contrast, remain under pressure.
Management said upcoming opportunities include the World Cup, America’s 250th birthday, the loyalty and credit card relaunch, and continued growth in e-commerce. Lawrence said World Cup sales should be “mainly incremental,” with product available across the chain and front-of-store presentations in markets hosting matches.
“While inflationary pressures persist, we’re confident in our ability to execute through a range of environments,” Lawrence said in closing remarks, adding that the company intends to continue offering customers “compelling assortments at a strong value.”
About Academy Sports and Outdoors NASDAQ: ASOAcademy Sports and Outdoors is a leading specialty retailer of sporting goods and outdoor gear, operating more than 260 stores across the United States. Headquartered in Katy, Texas, the company offers a broad assortment of merchandise spanning athletic footwear and apparel, team sports equipment, camping and outdoor recreation products, hunting and fishing supplies, and fitness accessories. In addition to its brick-and-mortar footprint, Academy serves customers through its e-commerce platform, offering online ordering, in-store pickup, and home delivery options.
The company's product portfolio includes seasonal and year-round categories designed to meet the needs of both casual enthusiasts and serious athletes.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Academy Sports posted Q1 sales growth of 6.7% and a comps rise of 2.9%, marking a return to growth.ASO e-commerce grew 17%, with all divisions rising; outdoor led 12% rise as ammo turned positive in February.Academy boosts My Academy Rewards; aims above 2M members to top 15M, even amid gas price and tariff pressure. Academy Sports and Outdoors, Inc. (ASO - Free Report) used its first-quarter fiscal 2026 earnings call to argue that its growth engine is gaining traction again, even as management described a pressured discretionary backdrop. The company returned to positive comparable-sales growth, raised its sales outlook and pointed to momentum in e-commerce, new stores and loyalty.
The more important message from the call was forward-looking. Executives framed the rest of the year around self-help initiatives, offsetting weaker lower-income demand and the drag from elevated gas prices.
ASO Returns to Positive Comps GrowthChief executive officer Steven Lawrence said that fiscal first-quarter sales of $1.44 billion rose 6.7%, while comparable sales increased 2.9%, with traffic up in the low-single digit and average unit retail up in the high-single digit. Lawrence said that the results marked a return to comps growth and came in at the high end of the range that management had discussed in April.
The quarter also topped the Zacks Consensus Estimate on both key headline metrics. Adjusted earnings were $0.93 per share, beating the Zacks Consensus Estimate of earnings of $0.91. Revenues of $1.442 billion surpassed the consensus estimate of $1.439 billion. That translated to an earnings surprise of 2.20% and a revenue surprise of 0.20%.
Chief financial officer Earl Ford said that e-commerce remained a standout, growing more than 17% and expanding penetration by 100 basis points. Ford added that all four divisions posted gains, with outdoor up 12%, sports and recreation rising 6%, apparel growing 5% and footwear inching up 3%.
ASO Benefits From Category & Brand MomentumLawrence highlighted outdoor as the strongest business, supported by fishing and shooting sports. He said the ammunition business turned positive in February after creating headwinds for much of last year, while firearms continued to gain share based on NICS checks data.
During the earnings call, Academy Sports also highlighted newer merchandise initiatives. Lawrence said that suppressors were launched in a limited number of stores during the quarter and are planned for more than 100 stores by the year-end, positioning the category as an incremental sales driver with a high attachment rate to firearms.
On the branded side, management pointed to continued strength in Nike and Jordan, along with growth in better private brands such as Freely and R.O.W. Lawrence said that the combined Nike and Jordan business rose at a mid-single-digit rate and the trend is expected to continue through the year.
ASO Puts More Weight on Loyalty & DigitalA central theme of the call was the relaunch of My Academy Rewards. Lawrence described a three-tier structure spanning base loyalty, a private-label credit card and a co-branded Mastercard, with the program built to increase engagement and make value more visible at the point of sale.
Management said that enrollment is already running up in the double digits year over year and that the goal is to add 2 million members this year, bringing the total loyalty membership above 15 million. Lawrence framed the offer as especially timely because customers are looking for ways to stretch spending.
The digital agenda also remains active. Lawrence said that Academy Sports is expanding same-day delivery to Uber Eats and Instacart in addition to DoorDash, while also planning to migrate on-site search to Google AI Commerce search and Gemini Enterprise tools ahead of the back-to-school season.
Academy Sports Raises Sales Outlook but Retains Margin ViewFord said that the gross margin fell 71 basis points to 33.2% in the quarter, mainly because of tariffs. He broke down the pressure in Q&A, saying tariffs created a 110-basis-point headwind that was partly offset by improvements in shrink and shipping.
Even with that pressure, ASO raised its full-year sales guidance to $6.23-$6.35 billion from $6.15-$6.35 billion. The comparable-sales guidance moved to flat to up 2% from down 1% to up 2%, while adjusted earnings per share guidance remained at $6.40-$6.80.
Ford said that the company expects first-half gross-margin pressure followed by modest back-half expansion, leaving the full-year gross-margin outlook unchanged at 34.5-35%.
ASO Q&A Centers on Consumer & TariffsAnalysts pressed management on whether the strong fiscal first quarter could hold as tax-refund benefits fade. Lawrence said that the business is likely to soften in the fiscal second quarter, with total sales through Memorial Day rising in the low-single digit and comps staying roughly flat, which he tied to higher gas prices.
A Goldman Sachs analyst asked about margin pressure and category mix. Ford responded that tariffs were the main culprit, and the lower-margin outdoor mix, including ammo, was a factor but not the primary driver.
A UBS analyst also pushed on what bridges fiscal first-quarter comps strength to the rest of the year. Ford said that management’s initiatives alone get the business to the mid-point of its full-year comps outlook, while the wider range depends on the lower-income consumer and external events, such as the World Cup and America’s 250th anniversary.
Academy Sports Tone Stays Constructive but CautiousThe call left a measured impression. Lawrence repeatedly emphasized that Academy Sports is building momentum through new stores, loyalty, digital capabilities and category expansion, while also acknowledging a cautious consumer who is increasingly shopping around promotions.
Ford reinforced that posture by pointing to a strong balance sheet, a healthy free cash flow and continued capital returns, but he did not downplay the impacts of gas prices, freight and tariffs on the year’s shape.
Zacks Signals Point to Balanced SetupASO currently carries a Zacks Rank #4 (Sell), alongside a Value Score A, a Growth Score A, a Momentum Score C and a VGM Score A.
Under the Zacks framework, strong Style Scores are most favorable when paired with a Zacks Rank #1 (Strong Buy) or 2 (Buy), while 4 outweighs attractive style characteristics. The A grades on value, growth and VGM indicate favorable underlying style traits, but the current rank points to weaker near-term estimate revision momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.
The combination leaves a mixed signal after the quarter. The Style Scores suggest that ASO has appealing characteristics on several measures, but the Zacks Rank remains the more important screen and can change as earnings estimates are revised following the latest results.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) on Tuesday posted upbeat earnings for its first quarter ended May 2.
The sporting goods retailer reported first-quarter adjusted earnings per share (EPS) of 93 cents, beating Wall Street analyst expectations of 91 cents per share. Net sales rose to $1.442 billion, in line with analyst expectations.
"We were pleased with the continued improvement in our results in first quarter, with total sales up 6.7%, driven by increases in both traffic and average ticket," stated Steve Lawrence, CEO. "Based on our first quarter performance, we are raising the low end of our full-year guidance."
Academy raised its full-year GAAP EPS guidance from its previous $5.65–$6.15 range up to $5.95–$6.35. Analysts currently expect $6.05.
Academy Sports raised its fiscal 2026 adjusted EPS guidance to $6.40-$6.80 from $6.10-$6.60, compared with analysts' estimates of $6.30. The retailer also increased the low end of its full-year sales outlook to $6.230 billion-$6.355 billion from $6.175 billion-$6.355 billion, while Wall Street expects $6.333 billion in revenue.
Academy Sports shares rose 1% to trade at $50.88 on Wednesday.
These analysts made changes to their price targets on Academy Sports following earnings announcement.
Wells Fargo analyst Ike Boruchow maintained Academy Sports with an Equal-Weight rating and lowered the price target from $56 to $50. JP Morgan analyst Christopher Horvers maintained the stock with a Neutral and lowered the price target from $60 to $59. UBS analyst Michael Lasser maintained Academy Sports with a Neutral and cut the price target from $56 to $55. Considering buying ASO stock? Here’s what analysts think:
Photo via Shutterstock
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Academy Sports and Outdoors, Inc. (ASO - Free Report) reported $1.44 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 6.7%. EPS of $0.93 for the same period compares to $0.76 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of +0.16%. The company delivered an EPS surprise of +1.97%, with the consensus EPS estimate being $0.91.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Academy Sports and Outdoors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable Sales Growth: 2.9% compared to the 2.4% average estimate based on four analysts.Stores - EOP: 324 compared to the 325 average estimate based on three analysts.Net Sales- Merchandise Division Sales- Outdoors: $427.35 million compared to the $383.15 million average estimate based on two analysts. The reported number represents a change of +14.9% year over year.Net Sales- Merchandise Division Sales- Sports and recreation: $355.95 million versus $360.84 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3% change.Net Sales- Total Merchandise Sales: $1.43 billion versus $1.39 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change.Net Sales- Merchandise Division Sales- Footwear: $300.81 million compared to the $303.51 million average estimate based on two analysts. The reported number represents a change of +2.8% year over year.Net Sales- Merchandise Division Sales- Apparel: $348.35 million versus $343 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.View all Key Company Metrics for Academy Sports and Outdoors here>>>
Shares of Academy Sports and Outdoors have returned -1.5% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Company is offering premium gifts, outdoor essentials and unbeatable prices to celebrate dads all summer long
, /PRNewswire/ -- Academy Sports + Outdoors ("Academy" or the "Company") (Nasdaq: ASO) is celebrating Father's Day with the launch of its "Dadmas" campaign, a seasonal initiative that reimagines Father's Day. Inspired by the excitement and anticipation of Christmas morning, "Dadmas", Academy is the go-to destination for gifts, gear and experiences that bring families together through outdoor fun and summer traditions.
Academy's Father's Day assortment features gifts across a variety of outdoor, sports and lifestyle categories, including:
Magellan Outdoors fishing shirts and outdoor apparel Grills, smokers, and griddles for backyard entertaining YETI coolers, drinkware, and barware Golf equipment and accessories, including PGA TOUR products H2OX Fishing rods, reels, tackle, and outdoor gear Range finders and outdoor technology gifts Apparel and footwear from leading national brands Backyard games, drinkware, and summer gathering essentials As families prepare for a summer filled with backyard gatherings, fishing trips, cookouts and time outdoors, Academy is offering a broad assortment of Father's Day gifts at unbeatable value, making it easier for customers to celebrate every kind of dad.
"Father's Day is about more than gifts, it's about creating moments and memories families enjoy together," said Matt McCabe, Executive Vice President and Chief Merchandising Officer. "We're helping customers celebrate the father figures in their lives with products and experiences that inspire adventure, connection and fun, all while delivering the quality, assortment and value our customers expect."
In celebration of Father's Day, Academy also partnered with local organizations and special guests to host shopping experiences that brought together fathers, father figures and children, including an event featuring former professional quarterback Colt McCoy with 10 families, and a partnership with 3D Girls, Inc. for a Father-Daughter Field Day. Additional givebacks include a local event in Altoona, Pa., at one of Academy's newest stores, benefiting Big Brothers Big Sisters of Blair County with a focus on father-child connections, and an event with collegiate running back Justice Haynes and his father, Verron Haynes, who will help 10 families enjoy a memorable shopping experience.
To make Father's Day shopping more convenient, Academy customers can take advantage of multiple shopping and fulfillment options, including buy online, pick up in-store, same-day delivery and free shipping offers. Customers can also access additional savings and rewards through myAcademy Rewards and the Academy Credit Card program.
To shop for Academy's Father's Day gift assortment and explore the "Dadmas" campaign, visit Academy.com.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.
The company provided insights into its fiscal second-quarter performance, emphasizing that while its fundamental business drivers remain strong, the current environment has necessitated an adjustment in guidance.
Cuts Q2 Guidance During Macro PressuresThe company lowered its second-quarter guidance, reducing revenue expectations to $415 million–$420 million from $424 million–$428 million, still above the $371.9 million estimate.
Same-Shack sales growth guidance was trimmed to 2.5%–3% from 3%–5% for the quarter.
For full year, the company trimmed EBITDA guidance to $225 million–$235 million from $230 million–$245 million. Also, the company reduced net income outlook to $45 million–$55 million from $50 million–$60 million.
Shake Shack’s management cited uncertainties in the market for the guidance cut.
SHAK Technical Analysis: Bearish Trend With Easing DownsideCurrently, Shake Shack’s stock is significantly below its moving averages, with the price trading 18.7% below the 20-day simple moving average (SMA) of $68.63 and 34.3% below the 50-day SMA of $84.91. The moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing, although the overall trend remains bearish.
The stock has faced a steep decline of 56.45% over the past 12 months, indicating a challenging year for investors. The recent death cross in September 2025, where the 50-day SMA crossed below the 200-day SMA, further underscores the bearish sentiment surrounding the stock.
What Shake Shack (SHAK) Does, Where Revenue Comes FromShake Shack is a burger restaurant that serves a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine, and more. The company’s burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun.
The company generates the majority of its revenue from the U.S., and its focus on high-quality ingredients and customer experience has positioned it as a notable player in the fast-casual dining sector. The recent guidance update reflects the company’s adaptability in a competitive landscape, emphasizing its commitment to long-term shareholder value.
SHAK Earnings Preview: Estimates and Analyst Price TargetsShake Shack is slated to provide its next financial update on July 30, 2026 (estimated).
EPS Estimate: 40 cents (Down from 44 cents) Revenue Estimate: $422.21 million (Up from $356.47 million) Valuation: P/E of 63.5x (Indicates premium valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $113.39. Recent analyst moves include:
TD Cowen: Hold (Lowers target to $70 on May 27) Guggenheim: Buy (Lowers target to $100 on May 11) JP Morgan: Neutral (Lowers target to $85 on May 8) How Shake Shack (SHAK) Ranks On Value, Growth and MomentumBelow is the Benzinga Edge scorecard for Shake Shack, highlighting its strengths and weaknesses compared to the broader market:
Value Rank: 56.54 — Indicates a moderate valuation relative to peers. Growth Rank: 89.72 — Suggests strong growth potential. Momentum Rank: 2.45 — Stock is underperforming the broader market. The Verdict: Shake Shack’s Benzinga Edge signal reveals a growth-heavy profile with strong growth potential but weak momentum indicators. Investors may want to monitor the stock closely as it navigates through current market challenges.
SHAK Stock Price Activity: Shake Shack shares were down 10.85% at $55.46 at the time of publication on Tuesday, according to Benzinga Pro data.
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NEW YORK, June 02, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Shake Shack, Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Shake Shack and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 7, 2026, Shake Shack reported its financial results for the first quarter of 2026. Among other items, Shake Shack disclosed an operating loss of $2.6 million, compared to operating income of $2.8 million in the prior-year period, and a net loss of $0.3 million, compared to net income of $4.5 million in the prior-year period. The Company further disclosed adjusted EBITDA of $37.0 million, down 9.3% versus the prior-year period. In addition, Shake Shack disclosed that restaurant-level margins came in “slightly below” expectations due to higher other operating expenses. The Company reported that other operating expenses were 16.2% of Shack sales, up 60 basis points year-over-year, and that food and paper costs were 28.3% of Shack sales, up 50 basis points year-over-year, with beef costs up by low-teens percentages. Shake Shack also disclosed that general and administrative expenses were $53.6 million, or 14.6% of total revenue, 190 basis points higher than last year, and that pre-opening costs were $6.9 million. Shake Shack further provided fiscal year 2026 adjusted EBITDA guidance in the range of $230 million to $245 million and stated that its outlook factors in “a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds.”
On this news, Shake Shack’s stock price fell $27.28 per share, or 28.26%, to close at $69.24 per share on May 7, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Shake Shack stock drops 9-10% after the company slashes FY 2026 revenue, margin, and EBITDA guidance
, /PRNewswire/ -- Shake Shack Inc. (NYSE: SHAK) shares were trading down more than 10% today after the company cut its full-year 2026 outlook across every major non-licensing financial metric, citing macroeconomic uncertainty, competitive pressure, rising beef costs, and weather-related sales weakness. Shareholders who lost money on their Shake Shack investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
Shake Shack reduced second quarter revenue guidance from $424-$428M to $415-$420M, lowered same-shack sales growth from 3-5% to 2.5-3%, cut restaurant-level profit margin guidance from 24-24.5% to 22-23%, and trimmed company-operated openings from 16-19 down to "approximately 16." The Company further cut its full year profit margins from 23-23.5% down to 22-23% and adjusted EBITDA guidance from $230-$245M to $225-$235M, with net income similarly dropping its midpoint from $55M to $50M. The cuts came just 26 days after CEO Rob Lynch reiterated guidance on the Q1 2026 earnings call on May 7, 2026, stating the company was "reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets."
SHAK shares had previously declined considerably following its May earnings. From a pre-drop price of $96.52 on May 6, 2026, SHAK shares have now fallen more than 40% to the high-$50s. Levi & Korsinsky, LLP is investigating whether Shake Shack may have failed to adequately disclose known risks to investors prior to today's guidance reduction.
Shareholders who purchased SHAK and suffered a loss are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.
Frequently Asked Questions About the SHAK Investigation
Q: What is the SHAK securities investigation about? A: A securities investigation has been initiated concerning Shake Shack Inc. (NYSE: SHAK) regarding potentially materially false and misleading statements. Shares fell approximately 9-10% after the company cut its full-year 2026 guidance across multiple metrics, causing significant losses for shareholders.
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What is a lead plaintiff and why does it matter? A: If the investigation proceeds to legal action, a lead plaintiff is the investor the court appoints to represent the group of affected investors. Lead plaintiffs are typically investors with the largest documented losses. Contacting the firm during the investigation phase preserves that option.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Shake Shack stock drops 9-10% after the company slashes FY 2026 revenue, margin, and EBITDA guidance
, /PRNewswire/ -- Shake Shack Inc. (NYSE: SHAK) shares were trading down more than 10% today after the company cut its full-year 2026 outlook across every major non-licensing financial metric, citing macroeconomic uncertainty, competitive pressure, rising beef costs, and weather-related sales weakness. Shareholders who lost money on their Shake Shack investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
Shake Shack reduced second quarter revenue guidance from $424-$428M to $415-$420M, lowered same-shack sales growth from 3-5% to 2.5-3%, cut restaurant-level profit margin guidance from 24-24.5% to 22-23%, and trimmed company-operated openings from 16-19 down to "approximately 16." The Company further cut its full year profit margins from 23-23.5% down to 22-23% and adjusted EBITDA guidance from $230-$245M to $225-$235M, with net income similarly dropping its midpoint from $55M to $50M. The cuts came just 26 days after CEO Rob Lynch reiterated guidance on the Q1 2026 earnings call on May 7, 2026, stating the company was "reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets."
SHAK shares had previously declined considerably following its May earnings. From a pre-drop price of $96.52 on May 6, 2026, SHAK shares have now fallen more than 40% to the high-$50s. Levi & Korsinsky, LLP is investigating whether Shake Shack may have failed to adequately disclose known risks to investors prior to today's guidance reduction.
Shareholders who purchased SHAK and suffered a loss are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.
Frequently Asked Questions About the SHAK Investigation
Q: What is the SHAK securities investigation about? A: A securities investigation has been initiated concerning Shake Shack Inc. (NYSE: SHAK) regarding potentially materially false and misleading statements. Shares fell approximately 9-10% after the company cut its full-year 2026 guidance across multiple metrics, causing significant losses for shareholders.
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What is a lead plaintiff and why does it matter? A: If the investigation proceeds to legal action, a lead plaintiff is the investor the court appoints to represent the group of affected investors. Lead plaintiffs are typically investors with the largest documented losses. Contacting the firm during the investigation phase preserves that option.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
View original content to download multimedia:https://www.prnewswire.com/news-releases/shake-shack-investigation-initiated-levi--korsinsky-investigates-the-officers-and-directors-of-shake-shack-shak-302789296.html
Shake Shack slashed second quarter revenue guidance by up to $13 million and cut same-shack sales growth expectations nearly in half -- just 26 days after issuing such guidance and reaffirming key full-year metrics
, /PRNewswire/ -- Shake Shack (NYSE: SHAK) shareholders lost approximately 9-10% of their investment today after the company cut Q2 FY 2026 revenue guidance to $415—$420 million, down from $424—$428 million issued just 26 days earlier. Same-shack sales growth guidance dropped from 3—5% to 2.5—3%, and restaurant-level profit margin expectations fell from 24—24.5% to 22—23%. Shareholders who lost money on SHAK are encouraged to submit their information now. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
On May 7, 2026, CEO Rob Lynch told investors on Shake Shack's Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On the same call, management broadened adjusted EBITDA guidance to $230—$245 million. Today -- less than four weeks later -- several of those targets were reduced. Restaurant-level margins were cut by up to 150 basis points. Adjusted EBITDA guidance was lowered to $225—$235 million. While full-year same-Shak sales guidance remains intact, Q2's guidance was gutted with the floor becoming the celling as projections dropped from 3—5% to only 2.5-3%.
Management attributed the cuts to "macroeconomic uncertainty, competitive landscape, and related impacts," along with rising beef costs and weather-related sales weakness.
If you purchased Shake Shack shares and suffered a loss, click here to discuss your legal rights. You may also reach Joseph E. Levi, Esq. at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations and recoveries. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the SHAK Investigation
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock and suffered financial losses may be eligible. Eligibility is based on purchase history and documented losses -- not on whether you still hold the shares.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its FY 2026 revenue, margin, and EBITDA guidance -- particularly the May 7, 2026 reaffirmation of targets that were materially reduced 26 days later on June 2, 2026.
Q: How much did SHAK stock drop? A: Shares fell approximately 9-10% on June 2, 2026, after the company disclosed material reductions across revenue, margin, and EBITDA guidance. The stock had declined approximately 39% from its early-April peak.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Fast food chain Shake Shack Inc (NYSE:SHAK) is down 4% to trade at $54.73 this morning, after a downgrade to "overweight" from "equal weight" at Morgan Stanley. The firm also cut its price target to $76 from $115, just one day after Shake Shack slashed both its second quarter and full-year outlook.
Several other analysts also chimed in with price-target cuts, including Wells Fargo to $60 from $80. Ahead of today, analysts had been mostly optimistic toward the burger name, with 17 of the 21 in coverage sporting a "buy" or "strong buy" recommendation.
SHAK earlier traded as low as $53.90, a new three-year low. The shares have backpedaled 32% in 2026, thanks in large part to a 28.3% post-earnings bear gap on May 7.
Options traders have been bullish toward SHAK as well. The equity's 50-day call/put volume ratio of 2.44 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 94th annual percentile, meaning should this bullish sentiment begin to unwind, it could trigger more headwinds for the shares.
Options are looking affordable for Shake Shack stock, per its Schaeffer's Volatility Index (SVI) of 51% that ranks in the 27th annual percentile. Plus, SHAK's Schaeffer's Volatility Scorecard (SVS) comes in at 95 out of 100. This suggests the equity has consistently realized higher volatility than its options have priced in.
Key Takeaways SHAK lowered Q2 and FY26 guidance, sending shares down 8.4% and 1.8% after-hours.Shake Shack sees Q2 revenues of $415-$420M and same-Shack sales up 2.5%-3.0%, with margins at 22%-23%.SHAK held licensed openings at ~8 and licensing revenues at $13.5-$13.7M, signaling asset-light momentum. Shake Shack Inc. (SHAK - Free Report) has revised its financial outlook for both the second quarter and full-year fiscal 2026, citing a more challenging operating environment. With the company now more than two-thirds through the quarter, the updated guidance reflects current macroeconomic uncertainty, the competitive landscape and related impacts.
Following the news, shares of SHAK declined 8.4% during trading hours and an additional 1.8% during after-hours yesterday.
Q2 & FY26 Guidance ResetShake Shack lowered expectations across several key operating and financial metrics for both the second quarter and full-year fiscal 2026.
For the fiscal second quarter ending July 1, 2026, the company now expects revenues of $415-$420 million, down from its previous guidance of $424-$428 million. Same-Shack sales growth is projected at 2.5%-3.0%, compared with the prior outlook of 3%-5%, while restaurant-level profit margin is expected to be 22%-23%, down from 24.0%-24.5%. The company also revised its company-operated restaurant opening target to approximately 16 units from the previously anticipated range of 16-19 locations.
Notably, Shake Shack maintained its outlook for licensed restaurant openings at approximately eight units and left licensing revenue guidance unchanged at $13.5-$13.7 million, indicating continued momentum in its asset-light growth initiatives.
The softer second-quarter outlook has also led to downward revisions in full-year expectations. Shake Shack now forecasts restaurant-level profit margins of 22%-23%, compared with its previous projection of 23.0%-23.5%. Adjusted EBITDA is expected to be in the range of $225-$235 million, versus the earlier outlook of $230-$245 million, while net income guidance has been lowered to $45-$55 million from $50-$60 million previously.
SHAK's Share Price PerformanceShares of SHAK have declined 29.8% year to date compared with the Zacks Retail - Restaurants industry’s 3.5% dip.
Image Source: Zacks Investment Research
The company’s performance has been pressured by the weather-related disruptions, softer tourism trends in key urban markets and ongoing inflationary pressures, particularly in beef costs. Its licensed business continues to face headwinds from geopolitical instability in the Middle East, which has resulted in temporary store closures, reduced operating hours and weaker tourism-driven demand. Earnings estimates for fiscal 2026 have declined in the past 30 days, depicting analysts' concern regarding the stock growth potential.
The Zacks Consensus Estimate for Starbucks’ 2026 sales and EPS indicates growth of 2.9% and 12.7%, respectively, from the prior-year levels.
Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 63.4%, on average. FIVE stock has gained 17% year to date.
The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 11.5% and 20.2%, respectively, from the year-ago period’s levels.
Dillard's (DDS - Free Report) has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter negative earnings surprise of 0.3%, on average. DDS stock has declined 2.3% year to date.
The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales and EPS indicates growth of 9.3% and 11.1%, respectively, from the prior-year levels.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Shake Shack, Inc. ("Shake Shack" or the "Company") (NYSE: SHAK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Shake Shack and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 7, 2026, Shake Shack reported its financial results for the first quarter of 2026. Among other items, Shake Shack disclosed an operating loss of $2.6 million, compared to operating income of $2.8 million in the prior-year period, and a net loss of $0.3 million, compared to net income of $4.5 million in the prior-year period. The Company further disclosed adjusted EBITDA of $37.0 million, down 9.3% versus the prior-year period. In addition, Shake Shack disclosed that restaurant-level margins came in "slightly below" expectations due to higher other operating expenses. The Company reported that other operating expenses were 16.2% of Shack sales, up 60 basis points year-over-year, and that food and paper costs were 28.3% of Shack sales, up 50 basis points year-over-year, with beef costs up by low-teens percentages. Shake Shack also disclosed that general and administrative expenses were $53.6 million, or 14.6% of total revenue, 190 basis points higher than last year, and that pre-opening costs were $6.9 million. Shake Shack further provided fiscal year 2026 adjusted EBITDA guidance in the range of $230 million to $245 million and stated that its outlook factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds."
On this news, Shake Shack's stock price fell $27.28 per share, or 28.26%, to close at $69.24 per share on May 7, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
New York, New York--(Newsfile Corp. - June 4, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Shake Shack Inc. ("Shake Shack Inc.") (NYSE: SHAK) concerning potential violations of the federal securities laws.
Shake Shack shareholders lost approximately 9-10% of their investment today after the company cut Q2 FY 2026 revenue guidance to $415--$420 million, down from $424--$428 million issued just 26 days earlier. Same-shack sales growth guidance dropped from 3--5% to 2.5--3%, and restaurant-level profit margin expectations fell from 24--24.5% to 22--23%.
On May 7, 2026, CEO Rob Lynch told investors on Shake Shack's Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On the same call, management broadened adjusted EBITDA guidance to $230--$245 million. Today -- less than four weeks later -- several of those targets were reduced. Restaurant-level margins were cut by up to 150 basis points. Adjusted EBITDA guidance was lowered to $225--$235 million. While full-year same-Shak sales guidance remains intact, Q2's guidance was gutted with the floor becoming the celling as projections dropped from 3--5% to only 2.5-3%.
If you suffered a loss on your Shake Shack Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300240
NEW YORK--(BUSINESS WIRE)--Shake Shack (NYSE: SHAK) lost approximately 9-10% of its value today after the company cut FY 2026 restaurant-level profit margin guidance from 23-23.5% to 22-23% and trimmed quarterly guidance from 24-24.5% to only 22-23%. Shareholders who lost money on SHAK are encouraged to submit their information immediately. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.On May 7, 2026 -- just 26 days before today'.
Shake Shack (NYSE: SHAK) lost approximately 9-10% of its value today after the company cut FY 2026 restaurant-level profit margin guidance from 23-23.5% to 22-23% and trimmed quarterly guidance from 24-24.5% to only 22-23%. Shareholders who lost money on SHAK are encouraged to submit their information immediately. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
On May 7, 2026 -- just 26 days before today's cuts -- CEO Rob Lynch stated on the Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On that same call, Lynch broadened the adjusted EBITDA range to $230-$245M. The company cited macroeconomic uncertainty, competitive pressure, rising beef costs, and weather-related sales weakness as drivers of today's downgrade.
On the Q4 2025 earnings call on February 26, 2026, Lynch stated: "Our progress in operational excellence has unlocked a new level of confidence and capability... positions us to achieve additional cost savings and further expansion in 2026 and beyond." Levi & Korsinsky is investigating whether these statements adequately reflected conditions known to management at the time they were made.
If you purchased Shake Shack shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the SHAK Investigation
Q: Who is conducting the SHAK investigation? A: Levi & Korsinsky, LLP is investigating potential securities law violations on behalf of investors who purchased SHAK securities and suffered losses. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its Q2 and FY 2026 financial outlooks -- including revenue, margin, and EBITDA guidance provided or reiterated as recently as May 7, 2026, just 26 days before the company announced material downward revisions across all key metrics.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604980558/en/
Shake Shack’s Second Quarter guidance disappointed investors on May 7, 2026. By June 2, that guidance was revised further downward and investors were again disappointed. The stock lost more than 40% from its May 6 figures. June 05, 2026 09:00 ET | Source: Levi & Korsinsky, LLP
NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- Shake Shack (NYSE: SHAK) had previously declined considerably following its May earnings; from a pre-drop price of $96.52, the stock slid 27.28 (28.26%) on May 7, 2026. On June 2, 2026, shareholders saw another 9-10% of their investment wiped out after management slashed several major full-year 2026 financial targets and nearly ever second quarter target issued during its first quarter earnings just 26 days earlier. Shareholders who lost money on SHAK are encouraged to submit their information to Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
On May 7, 2026, CEO Rob Lynch told investors: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On that same call, management broadened adjusted EBITDA guidance to $230-$245 million and was “confident in [their] guidance for Q2 at 3% to 5% comp growth.” Twenty-six days later, on June 2, 2026, the Company cut Q2 revenue guidance from $424-$428 million to $415-$420 million, reduced same-shack sales growth to 2.5-3%, lowered restaurant-level profit margin guidance from 24-24.5% to 22-23%. The Company further trimmed full-year profit margins, adjusted EBITDA, and net income projections. Management attributed the cuts to “the current macroeconomic uncertainty, competitive landscape, and related impacts.”
The factors cited on June 2 did not emerge overnight. As early as the Q4 2025 call on February 26, 2026, Lynch described "a new level of confidence and capability" positioning the Company for "additional cost savings and further expansion in 2026 and beyond." On May 7, 2026, Lynch claimed management was “highly confident in our guide for Q2.”
If you purchased Shake Shack shares and suffered a loss, click here to discuss your rights with Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com
Frequently Asked Questions About the SHAK Investigation
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its Q2 and FY 2026 financial outlook -- including revenue, margins, same-shack sales growth, and EBITDA targets -- which were issued or reiterated as recently as May 7, 2026, and materially cut just 26 days later. When the second quarter guidance was revealed, the stock price declined sharply on May 7, 2026. When the guidance was revised downward on June 2, 2026, the stock price declined even further.
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I live outside the United States? A: U.S. securities fraud investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Shake Shack Inc. faces valuation pressure as fast-casual peers struggle amid fast-food value promotions and shifting consumer price sensitivity. SHAK's digital and loyalty initiatives, including the "$1-$3-$5" app deals, boosted app downloads by 35% and drove a 4.6% same-store sales increase, but margin risks remain. Management cut FY 2026 guidance: restaurant-level margin now 22–23%, adjusted EBITDA $225–235M, and EPS $1.11–1.36, reflecting SG&A deleverage and competitive headwinds.
New York, New York--(Newsfile Corp. - June 8, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Shake Shack Inc. ("Shake Shack Inc.") (NYSE: SHAK) concerning potential violations of the federal securities laws.
Shake Shack shareholders lost approximately 9-10% of their investment today after the company cut Q2 FY 2026 revenue guidance to $415--$420 million, down from $424--$428 million issued just 26 days earlier. Same-shack sales growth guidance dropped from 3--5% to 2.5--3%, and restaurant-level profit margin expectations fell from 24--24.5% to 22--23%.
On May 7, 2026, CEO Rob Lynch told investors on Shake Shack's Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On the same call, management broadened adjusted EBITDA guidance to $230--$245 million. Today -- less than four weeks later -- several of those targets were reduced. Restaurant-level margins were cut by up to 150 basis points. Adjusted EBITDA guidance was lowered to $225--$235 million. While full-year same-Shak sales guidance remains intact, Q2's guidance was gutted with the floor becoming the celling as projections dropped from 3--5% to only 2.5-3%.
If you suffered a loss on your Shake Shack Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300484
Source: Levi & Korsinsky, LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Shake Shack Inc. ("Shake Shack" or "the Company") (NYSE: SHAK) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Shake Shack released its Q1 2026 financial results on May 7, 2026. The Company reported an operating loss after reporting a profit in the prior-year period. The Company also reported restaurant-level margins "slightly below" expectations. The Company then provided guidance for the full year that factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds." Based on this news, shares of Shake Shack fell by more than 28.2% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
Shake Shack projected 3% to 5% same store sales growth in the second quarter on May 7, 2026. Twenty-six days later, those projections were gutted to 2.5% to 3%.
, /PRNewswire/ -- Shake Shack (NYSE: SHAK) investors lost approximately 9-10% of their holdings today after the company slashed its FY 2026 adjusted EBITDA guidance to $225-$235 million -- down from the $230-$245 million range it had presented to investors just 26 days earlier on May 7, 2026. Shareholders who suffered losses on their Shake Shack investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
On May 7, 2026, CEO Rob Lynch told investors on the Q1 2026 earnings call: "We are broadening our 2026 adjusted EBITDA guidance to a range of $230 million to $245 million." On the same call, management reiterated guidance for restaurant-level margins at 23-23.5%. On June 2, 2026, the company revised full-year restaurant-level profit margins to 22-23% and cut EBITDA guidance to $225 million to $235 million. The stock fell approximately 9-10% in a single session.
The May 7 earnings call also issued second quarter revenue guidance of $424-$428 million. Today's revision lowered that figure to $415-$420 million -- a reduction of up to $13 million. Same-shack sales growth guidance dropped from 3-5% to 2.5-3% for the quarter.
Shareholders who lost money on SHAK are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the SHAK Investigation
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its Q2 and FY 2026 financial outlook, including EBITDA, revenue, restaurant-level margins, and same-shack sales growth guidance. When revised figures were disclosed on June 2, 2026, the stock price declined sharply.
Q: How much did SHAK stock drop? A: Shares fell approximately 9-10% on June 2, 2026, after the company disclosed material downward revisions to multiple Q2 and FY 2026 guidance metrics. Investors who purchased shares at previously guided levels may be entitled to recovery.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
On June 2, Shake Shack issued a business update reflecting ongoing macroeconomic challenges and competitive pressures. The company provided insights into its fiscal second-quarter performance, emphasizing that while its fundamental business drivers remain strong, the current environment has necessitated an adjustment in guidance.
Malcolm Ethridge, managing partner at Capital Area Planning Group, named Morgan Stanley (NYSE:MS) as his final trade.
On May 8, Citigroup analyst Keith Horowitz maintained Morgan Stanley at Neutral and raised the price target from $170 to $194.
Don't forget to check out our premarket coverage here
Jim Lebenthal, partner at Cerity Partners, picked AbbVie Inc. (NYSE:ABBV).
According to recent news, AbbVie, on May 29, announced European Commission authorization of an expanded label for VENCLYXTO® (venetoclax) to include additional combinations in previously untreated chronic lymphocytic leukemia.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, recommended Cboe Global Markets, Inc. (NASDAQ:CBOE).
Price Action:
Shake Shack shares gained 1.6% to close at $53.78 on Tuesday. Morgan Stanley shares fell 0.9% to settle at $210.25 during the session. AbbVie shares rose 1.1% to settle at $225.42 on Tuesday. Cboe Global Markets gained 3.7% on Tuesday. Photo via Shutterstock
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The restaurant industry is currently facing a tug of war between value-seeking diners and those craving premium experiences. Choosing between BJ's Restaurants (BJRI +7.04%) and Shake Shack (SHAK +7.07%) requires weighing scale against high-octane growth.
BJ's Restaurants operates as a traditional casual dining chain with large locations and extensive menus. Shake Shack thrives in the fast-casual space, focusing on premium burgers and a leaner footprint. While both companies have reached similar revenue levels, their paths to profitability and market valuations diverge significantly for investors.
The case for BJ's RestaurantsBJ's Restaurants operates a national chain of over 200 locations that blend a brewery experience with family-friendly dining. The company focuses on a massive menu featuring deep-dish pizza and its own proprietary craft beers. This strategy aims to capture high guest traffic by appealing to a wide variety of tastes and dining occasions.
The company operates within the competitive landscape of retail stocks, focusing on a high-volume dining model. In its 2025 fiscal year (FY), revenue reached $1.4 billion, which represented a growth rate of 3.1% compared to the prior year. Net income for the period was $48.8 million, showing a significant increase from the $16.7 million reported in 2024.
As of its December 2025 balance sheet, the debt-to-equity ratio was 1.3x. This ratio represents total debt divided by shareholder equity, showing how much a company relies on borrowing to fund its operations. The current ratio was 0.1x, which measures a company's ability to cover short-term liabilities with liquid assets. Free cash flow for the year reached $40.9 million, representing cash left over after paying for operations and equipment.
The case for Shake ShackShake Shack has evolved from a single hot dog cart into a global brand with over 600 locations worldwide. The business model utilizes a mix of company-operated Shacks and a high-margin licensing program. You should note that licensee concentration is high, as one partner operates 30% of all international licensed Shacks, which adds a layer of risk to the business.
Financial performance in FY 2025 showed strong momentum as revenue reached $1.4 billion. This marked a substantial revenue growth rate of 15.4% over the previous fiscal year. Net income for the year was $45.7 million, resulting in a net margin of 3.2%.
According to the December 2025 balance sheet, the company maintained a debt-to-equity ratio of 1.7x. The current ratio reached 1.8x, suggesting a healthy cushion of short-term assets relative to upcoming bills. Free cash flow for the fiscal year was $56.5 million, which is the cash generated after accounting for all capital expenditures.
Risk profile comparisonBJ's Restaurants faces intense competition from local operators and large national chains like Darden Restaurants. The company is also subject to complex regulation regarding its ability to manufacture and sell alcoholic beverages. Volatility in commodity prices for meats and grains remains a constant threat to its operating margin, as inflation can drive up raw material costs.
Shake Shack deals with significant supply chain risks, relying on a single distributor for nearly 95% of its domestic food distribution. Any disruption from this partner could lead to severe shortages at its locations. The company also competes against giants like McDonald's, making rising labor costs a headwind for the business.
Valuation comparisonBJ's Restaurants currently trades at a significant discount to Shake Shack when comparing both Forward P/E and P/S ratio metrics based on future earnings estimates.
MetricBJ's RestaurantsShake ShackSector BenchmarkForward P/E21.7x46.7x29.5xP/S ratio0.7x1.5xn/aSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Having eaten at both BJ's Restaurants and Shake Shack, I prefer the food and prices at the latter. When it comes to which company to invest in, however, that’s a more complicated decision.
BJ's is not exhibiting the kind of outsized growth seen with Shake Shack. The restaurant chain delivered a 3% year-over-year sales increase in 2025, and that was also the case in the first quarter.
Contrast that with Shake Shack’s 15% growth rate in 2025, with a 14% year-over-year jump up in sales in its fiscal first quarter ended April 1. Shake Shack plans to open over 60 new locations in 2026, and so, the company forecasted a year-over-year sales increase of at least 22%.
However, opening restaurants is costly, and the price for beef has risen, putting pressure on Shake Shack’s margins. It exited fiscal Q1 with a net loss of $0.3 million versus net income of $4.5 million in 2025.
BJ's is a well-run operation with net income of $9 million in Q1 on sales of $358 million. Its stock hit a 52-week high exceeding $48 on June 10 while Shake Shack shares fell to a low of $51.60 on June 8 as it reduced its FY 2026 guidance due to macroeconomic headwinds.
Despite the price increase, BJ’s stock boasts the better valuation. Factoring this in along with solid financials makes BJ's Restaurants the better stock to buy in 2026.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Shake Shack Inc. ("Shake Shack" or "the Company") (NYSE: SHAK) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Shake Shack released its Q1 2026 financial results on May 7, 2026. The Company reported an operating loss after reporting a profit in the prior-year period. The Company also reported restaurant-level margins "slightly below" expectations. The Company then provided guidance for the full year that factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds." Based on this news, shares of Shake Shack fell by more than 28.2% on the same day.
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NEW YORK--(BUSINESS WIRE)--Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) today announced the election of retail industry veteran Christiane Pendarvis to its Board of Directors, effective July 2. Ms. Pendarvis is a seasoned executive with more than 25 years of experience driving growth across direct-to-consumer and omnichannel businesses. She has held leadership roles at both high-growth retail brands and Fortune 500 concepts with a focus on general management and retail merchan.
Advent International L.P. trimmed its holdings in CCC Intelligent Solutions Holdings Inc. (NYSE: CCCS) by 44.5% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 37,342,526 shares of the company's stock after selling 30,000,000 shares during the quarter. CCC Intelligent
Two big apartment owners, AvalonBay Communities and Equity Residential, are nearing a deal to combine in a bid to create a multifamily real-estate giant, according to people familiar with the matter.
CHICAGO & ARLINGTON, Va.--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) and AvalonBay Communities, Inc. (NYSE: AVB) today announced a definitive agreement to combine in an all-stock merger of equals creating one of the country's leading real estate companies with the differentiated scale, capabilities, and balance sheet strength to expand margins, accelerate growth, and redefine leadership in rental housing. The new company will have a pro forma equity market capitalization of approximately $.
NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating the merger of Equity Residential (NYSE: EQR) and AvalonBay Communities, Inc. Upon closing of the proposed transaction, Equity Residential shareholders will own approximately 48.8% of the combined company.Halper Sadeh encourages Equity Residential shareholders to click here to learn more about their rights and options or contact Daniel Sadeh or Zachary Halper free of charge at (212) 763-0060 or sadeh@halper.
Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Equity Residential (NYSE: EQR) related to its merger with AvalonBay Communities, Inc. Upon closing of the proposed transaction, Equity Residential shareholders will own approximately 48.8% of the combined company. Is it a fair deal?
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Key Takeaways AVB and EQR plan an all-stock merger of equals, forming a 180,000 apartment REIT platform.AVB holders get 2.793 EQR shares; post-close ownership ~51.2% AVB / 48.8% EQR.Projected $175M gross synergies ($125M net); dual A3/A- ratings and $2.81 annualized dividend at start. AvalonBay Communities (AVB - Free Report) and Equity Residential (EQR - Free Report) are trying to reshape the U.S. apartment REIT market with an all-stock merger of equals that would create one of the country’s largest multifamily real estate platforms with more than 180,000 rental apartments.
For investors, the point is not just that two large landlords are joining forces. The companies believe a wider portfolio, a strong balance sheet and lower costs can support better earnings growth over time.
A Bigger Apartment PlatformThe combined company would have an estimated equity market value of about $52 billion and an enterprise value of about $69 billion. That larger footprint could help the company spread technology, centralized services and operating systems across more communities. In real estate, scale can be useful when it lowers property-level costs, improves decision-making and gives management more data on rents, demand and resident behavior.
Deal Terms and Leadership DetailsThe deal terms are straightforward. AvalonBay shareholders would receive 2.793 Equity Residential shares for each AvalonBay share they own. After closing, AvalonBay investors would own about 51.2% of the combined company, while Equity Residential investors would own about 48.8%. The transaction has been approved by both boards and is expected to close in the second half of 2026, if approvals and other usual conditions are met.
Benjamin Schall, AvalonBay’s president and CEO, is expected to lead the combined company. Steve Sterrett, Equity Residential’s current lead independent trustee, would serve as chairman. The company will have dual headquarters in Arlington, VA, and Chicago, and will receive a new name at closing.
Cost Savings Could Support EarningsOne clear benefit is the expected synergy opportunity. The companies project $175 million of gross annual synergies and $125 million of annual net operating synergies after expected real estate tax reassessments. These savings are expected to come from corporate costs, property management expenses and improved net operating income across the portfolio.
That matters because apartment REITs are often valued on cash flow and funds from operations. If the company can reduce costs while keeping occupancy and rents healthy, more of each dollar of revenue can flow through to shareholders. The companies also expect the merger to be accretive to both shareholder groups, based on 2026 guidance at a full run-rate level.
A Stronger Development EngineThe deal also gives the new company a larger development platform. Together, the companies have about $4.4 billion under construction, representing roughly 10,800 apartments across 32 communities. About half of those projects include an affordable or mixed-income component. The combined company also has a development rights pipeline of about $4.2 billion and around 9,800 homes.
For investors, this could be important because development can create value when new properties are built at attractive returns.
Capital Strength and Dividend ContinuityAnother benefit is financial flexibility. AvalonBay and Equity Residential said the combined company would benefit from the dual A3/A- credit ratings, strong cash flow and better access to capital markets. They also pointed to about $2 billion of annual cash flow and self-funding capacity, which could be used for development, acquisitions and other growth opportunities.
The combined company expects to start with an annualized dividend of $2.81 per share. Both companies also plan to keep paying regular quarterly dividends until the transaction closes. That detail will matter for income-focused investors who own apartment REITs for steady cash flow.
The Investor TakeawayThis deal is a bet that scale still counts in rental housing. If the new company reaches its savings targets, keeps development returns attractive and avoids major integration problems, shareholders could benefit from a stronger apartment REIT with wider investment options. The main risk is execution. The companies still need approvals, and the expected benefits depend on a smooth integration.
Currently, AvalonBay and Equity Residential carry a Zacks Rank #3 (Hold) each. In the past three months, shares of AVB and EQR have outperformed the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
Image Source: Zacks Investment Research
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
The biggest ever merger of real estate investment trusts — the combination of Equity Residential and AvalonBay, announced Thursday — has investors and analysts alike left with dropped jaws.
The all-stock merger will have a market capitalization of about $52 billion and a total enterprise value of approximately $69 billion, according to a release. It will create one of the largest real estate companies in the U.S., with more than 180,000 rental apartments.
"This combination creates a new and fundamentally stronger company with differentiated capabilities that will drive structurally superior cash flow generation, earnings and dividend growth, and value for shareholders," said Benjamin Schall, CEO of AvalonBay.
Schall will become CEO of the newly formed company, and Equity Residential CEO Mark Parrell will retire when the transaction closes.
Allan Swaringen, president and CEO of JLL Income Property Trust, called the tie-up "unbelievable."
"That they would merge is really incredible," he said.
JLL Income Property Trust is part of LaSalle Investment Management, which manages about $90 billion of real estate investments globally for institutional clients and high-net-worth individuals.
Swaringen noted that the stocks of both companies are trading at below their net asset values, a situation that makes them both ripe to be bought and privatized.
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"I think this might be a defense against privatization. By putting themselves together, they're almost too big to get bought," Swaringen said.
He also noted the high cost of building technology, which residential tenants now demand – from online leasing to credit checking to delivering bandwidth and Wi-Fi. Consolidating could reduce those costs.
"Strategically, the rationale is straightforward: scale, liquidity, balance sheet efficiency and overhead synergies," said David Auerbach, chief investment officer at Hoya Capital Real Estate.
Auerbach said he thinks this could be the first of more megadeals in the space.
"We have WAY too many Apartment REITs out there, and it's a sector ripe for consolidation," he wrote in emailed comments to CNBC.
Auerbach noted that the deal comes after a challenging stretch for apartment landlords, who have been dealing with sluggish rent growth due to the post-Covid construction boom that delivered a massive wave of new supply.
Neither Auerbach nor Swaringen said they expect to see any effect on rents. While the combined company's market share might be growing in certain markets, they are still going to have to compete with the rest of the field. The apartment market is highly diversified, building to building, giving consumers a lot of options.
Regulatory and political scrutiny may arise, given the sheer size of the deal and the current drumbeat on housing affordability. But even after merging, the combined company will have a small market share.
"While there are no antitrust regulatory approvals needed, there is the political PR battle for which we think management well articulated [that] the combined company is < 3% market share and heavily invests in expanding housing," wrote Alexander Goldfarb, senior analyst with Piper Sandler. "Ultimately, we believe the combined company needs to improve earnings growth beyond the one-time synergies to show bigger is actually more profitable."
Correction: JLL Income Property Trust is part of LaSalle Investment Management, which manages about $90 billion of real estate investments globally. A previous version of this story mischaracterized the investment vehicle.
