Academy Sports & Outdoors, Inc.

Previous wording

Any forward-looking statement made by us in this Quarterly Report speaks only as of the date of this Quarterly Report and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments or other strategic transactions we may make. We undertake 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.

Current wording

Any forward-looking statement made by us in this Quarterly Report speaks only as of the date of this Quarterly Report and is expressly qualified in its entirety by the cautionary statements included in this Quarterly Report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments or other strategic transactions we may make. We undertake 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.

Previous wording

•risks associated with our reliance on internationally manufactured merchandise which exposes us to various international risks, including additional tariffs;

Current wording

•risks associated with our reliance on internationally manufactured merchandise which exposes us to various international risks, including additional tariffs or changes to existing tariffs;

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited financial statements and related notes included elsewhere in this Quarterly Report for the thirteen weeks ended May 2, 2026 and our audited financial statements for the fiscal year ended January 31, 2026 and the section entitled “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in the Annual Report.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited financial statements and related notes included elsewhere in this Quarterly Report for the thirteen and twenty-six weeks ended August 1, 2026 and our audited financial statements for the fiscal year ended January 31, 2026 and the section entitled “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in the Annual Report.

Previous wording

We operate on a retail fiscal calendar pursuant to which our fiscal year consists of 52 or 53 weeks, ending on the Saturday closest to January 31 (which such Saturday may occur on a date following January 31) each year. References to any year, quarter, or month mean our fiscal year, fiscal quarter, and fiscal month, respectively, unless the context requires otherwise. References to the “current quarter,” “2026 first quarter,” or similar reference refers to the thirteen week period ended May 2, 2026, and any reference to the “prior year quarter,” “2025 first quarter” or similar reference refers to the thirteen week period ended May 3, 2025. Unless otherwise specified, all comparisons regarding the current period of 2026 are made to the corresponding period of 2025.

Current wording

We operate on a retail fiscal calendar pursuant to which our fiscal year consists of 52 or 53 weeks, ending on the Saturday closest to January 31 (which such Saturday may occur on a date following January 31) each year. References to any year, quarter, or month mean our fiscal year, fiscal quarter, and fiscal month, respectively, unless the context requires otherwise. References to the “current quarter,” “2026 second quarter,” or similar reference refers to the thirteen week period ended August 1, 2026, and any reference to the “prior year quarter,” “2025 second quarter” or similar reference refers to the thirteen week period ended August 2, 2025. Unless otherwise specified, all comparisons regarding the current period of 2026 are made to the corresponding period of 2025.

Previous wording

We are a leading full-line sporting goods and outdoor recreation retailer in the United States. Our mission is to provide “Fun for All”, and we fulfill this mission with a localized merchandising strategy and value proposition that deeply connect with a broad range of consumers. Our product assortment focuses on key categories of outdoor, sports and recreation, apparel, and footwear (representing 30%, 25%, 24%, and 21% of our 2026 first quarter net sales, respectively) through both leading national brands and a portfolio of private label brands, which go well beyond traditional sporting goods and apparel offerings.

Current wording

We are a leading full-line sporting goods and outdoor recreation retailer in the United States. Our mission is to provide “Fun for All”, and we fulfill this mission with a localized merchandising strategy and value proposition that deeply connect with a broad range of consumers. Our product assortment focuses on key categories of outdoor, apparel, sports and recreation, and footwear (representing 29%, 28%, 24%, and 19% of our 2026 second quarter net sales, respectively) through both leading national brands and a portfolio of private label brands, which go well beyond traditional sporting goods and apparel offerings.

Previous wording

As of May 2, 2026, we operated 324 stores that range in size from approximately 40,000 to 130,000 gross square feet, with an average size of approximately 70,000 gross square feet, throughout 21 contiguous states located primarily in the southern United States. Our stores are supported by approximately 22,000 team members, three distribution centers, and our e-commerce platform, which includes our website at www.academy.com and our mobile app. Additionally, we are deepening our customer relationships, further integrating our e-commerce platform with our stores and driving operating efficiencies by developing our omnichannel capabilities such as our mobile app, optimizing the website experience and upgrading our fulfillment capabilities.

Current wording

As of August 1, 2026, we operated 327 stores that range in size from approximately 40,000 to 130,000 gross square feet, with an average size of approximately 70,000 gross square feet, throughout 21 contiguous states located primarily in the southern United States. Our stores are supported by approximately 22,000 team members, three distribution centers, and our e-commerce platform, which includes our website at www.academy.com and our mobile app. Additionally, we are deepening our customer relationships, further integrating our e-commerce platform with our stores and driving operating efficiencies by developing our omnichannel capabilities such as our mobile app, optimizing the website experience and upgrading our fulfillment capabilities.

Previous wording

We continue to monitor global macroeconomic trends and uncertainties such as inflation, existing and potential tariffs, and other shifting trade policies, which have impacted consumer spending and could adversely affect our ability to grow sales and merchandise margin. The impact of the evolving macroeconomic environment on our financial results is uncertain. We have worked diligently to mitigate the impact of tariffs on our business. We are closely monitoring the evolving environment with respect to tariffs and other trade policy developments and will continue to adjust plans as needed, including, but not limited to, inventory purchase quantities and timing, strategic pricing and promotional adjustments to maintain value for our customers, diversifying sourcing to shift country of origin, and vendor negotiations.

Current wording

We continue to monitor global macroeconomic trends and uncertainties such as inflation, existing and potential tariffs, and other shifting trade policies, which have impacted consumer spending and could adversely affect our ability to grow sales and merchandise margin. The impact of the evolving macroeconomic environment on our financial results is uncertain. We are closely monitoring the evolving environment with respect to tariffs and other trade policy developments and will continue to adjust plans as needed, including, but not limited to, appropriate sourcing diversification, strategic pricing and promotional adjustments to maintain value for our customers, and other operational decisions to manage the impact of tariffs on our business.

Previous wording

Comparable Sales. Comparable sales include stores open after thirteen full fiscal months as well as all e-commerce sales. There may be variations in the way in which some of our competitors and other retailers calculate comparable sales. As a result, data in this Quarterly Report regarding our comparable sales may not be comparable to similar data made available by other retailers. Stores which have been closed for an extended period of time are removed from the calculation. E-commerce sales include omni-channel sales fulfilled by our stores. For example, all buy-online-pickup-in-store (“BOPIS”) transactions are allocated to e-commerce sales for the purpose of comparable sales, despite the fact that our customers pick-up these purchases from a specific store.

Current wording

Comparable Sales. Comparable sales include stores open after thirteen full fiscal months, all e-commerce sales, and credit card revenue. There may be variations in the way in which some of our competitors and other retailers calculate comparable sales. As a result, data in this Quarterly Report regarding our comparable sales may not be comparable to similar data made available by other retailers. Stores which have been closed for an extended period of time are removed from the calculation. E-commerce sales include omnichannel sales fulfilled by our stores. For example, all buy-online-pick up-in-store (“BOPIS”) transactions are allocated to e-commerce sales for the purpose of comparable sales, despite the fact that our customers pick up these purchases from a specific store.

Previous wording

We are implementing enhancements to the online shopping experience, including a redesigned homepage, expanded BOPIS functionality, enhanced shipping notifications, and ongoing improvements in product discovery and site experience. Our e-commerce platform supports store operations by driving customer demand, providing real-time product discovery and inventory visibility, and enabling store-fulfilled transactions such as BOPIS, ship-to-store, and ship-from-store. During the 2026 first quarter, stores facilitated approximately 95% of our total sales, including ship-from-store, BOPIS and in-store retail sales. We expect to continue investing in the expansion and enhancement of our omnichannel capabilities, including our mobile application, website experience optimization, fulfillment improvements, and emerging digital commerce capabilities such as artificial intelligence-enabled shopping experiences and social and marketplace commerce integrations. These initiatives are intended to support long-term growth and improve customer experience, and will require ongoing investment.

Current wording

We are implementing enhancements to the online shopping experience, including a redesigned homepage, expanded BOPIS functionality, enhanced shipping notifications, and ongoing improvements in product discovery and site experience. Our e-commerce platform supports store operations by driving customer demand, providing real-time product discovery and inventory visibility, and enabling store-fulfilled transactions such as BOPIS, ship-to-store, and ship-from-store. During the 2026 year-to-date second quarter, stores facilitated approximately 95% of our total sales, including ship-from-store, BOPIS and in-store retail sales. We expect to continue investing in the expansion and enhancement of our omnichannel capabilities, including our mobile application, website experience optimization, fulfillment improvements, and emerging digital commerce capabilities such as artificial intelligence-enabled shopping experiences and social and marketplace commerce integrations. These initiatives are intended to support long-term growth and improve customer experience, and will require ongoing investment.

Previous wording

We expect that new stores will be a key driver of growth in our net sales and gross margin in the future as we execute our new store opening growth plans. Our growth strategy encompasses both deepening our presence in legacy and existing markets as well as entering new markets, leveraging enhanced brand awareness and operational efficiencies. Our new store model favors off-mall locations within power centers or stand-alone buildings. We utilize comprehensive demographic and trade data to guide our real estate site selection. During the 2026 first quarter, we opened two new stores. Our strategic real estate approach, including the 65 stores opened since fiscal year 2021, has positioned us effectively for continued expansion.

Current wording

We expect that new stores will be a key driver of growth in our net sales and gross margin in the future as we execute our new store opening growth plans. Our growth strategy encompasses both deepening our presence in legacy and existing markets as well as entering new markets, leveraging enhanced brand awareness and operational efficiencies. Our new store model favors off-mall locations within power centers or stand-alone buildings. We utilize comprehensive demographic and trade data to guide our real estate site selection. During the 2026 second quarter, we opened three new stores. Our strategic real estate approach, including the 68 stores opened since fiscal year 2021, has positioned us effectively for continued expansion.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative (“SG&A”) expenses include store and corporate administrative payroll and payroll benefits, store and corporate headquarters occupancy costs, advertising, credit card processing, information technology, pre-opening costs and other store and administrative expenses. These expenses are both variable and fixed in nature. SG&A expenses as a percentage of sales decreased from 28.8% in the 2025 first quarter to 28.1% in the 2026 first quarter. This decrease was a result of increased sales and ongoing expense discipline across the organization in addition to lapping the Jordan Brand launch in the 2025 first quarter. We track and measure operating expenses as a percentage of net sales in order to evaluate our performance against profitability targets. Management of SG&A expenses depends on our ability to balance operating costs, such as store and corporate headcount, information technology infrastructure and marketing and advertising expenses, while efficiently and effectively servicing our customers.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative (“SG&A”) expenses include store and corporate administrative payroll and payroll benefits, store and corporate headquarters occupancy costs, advertising, credit card processing, information technology, pre-opening costs and other store and administrative expenses. These expenses are both variable and fixed in nature. SG&A expenses as a percentage of sales decreased from 26.9% in the 2025 year-to-date second quarter to 26.7% in the 2026 year-to-date second quarter. This decrease was a result of increased sales and ongoing expense discipline across the organization. We track and measure operating expenses as a percentage of net sales in order to evaluate our performance against profitability targets. Management of SG&A expenses depends on our ability to balance operating costs, such as store and corporate headcount, information technology infrastructure and marketing and advertising expenses, while efficiently and effectively servicing our customers.

Previous wording

Interest Expense. Interest expense includes regular interest payable related to our Term Loan, Notes and ABL Facility (see Note 4 to the accompanying financial statements) and the amortization of our deferred loan costs and original issuance discounts associated with the acquisition of the debt.

Current wording

Interest Expense. Interest expense includes regular interest payable related to our Notes, ABL Facility, and Term Loan (see Note 4 to the accompanying financial statements) and the amortization of our deferred loan costs and original issuance discounts associated with the acquisition of the debt. During the second quarter of 2026, Academy, Ltd. issued $500 million aggregate principal amount of its 5.875% Senior Secured Notes due 2031 (the “Notes”). We used the proceeds from the Notes to redeem the 2020 Notes and voluntarily prepay the Term Loan in full (see Note 4). This pay down resulted in decreased interest expense in year-to-date 2026 as compared to the prior year period, and we anticipate it will result in decreased interest expense compared to 2025 throughout the remainder of 2026.

Previous wording

Income Tax Expense. ASO, Inc. is treated as a U.S. corporation for U.S. federal, state, and local income tax purposes and accordingly, a provision for income taxes has been recorded for the anticipated tax consequences of our reported results of operations for federal, state and local income taxes. Recent fluctuations in income tax expense have been primarily as a result of changes in income before income taxes and the effect of cross border tax laws.

Current wording

Income Tax Expense. ASO, Inc. is treated as a U.S. corporation for U.S. federal, state, and local income tax purposes and accordingly, a provision for income taxes has been recorded for the anticipated tax consequences of our reported results of operations for federal, state and local income taxes. Recent fluctuations in income tax expense have been primarily as a result of the purchase of transferable tax credits, the effect of cross-border tax laws, and changes in income before income taxes.

Previous wording

Net Sales. Net sales increased $90.6 million, or 6.7%, in the 2026 first quarter compared to the prior year first quarter, which was driven by increased sales of 11.7% in the outdoor merchandise division, 6.2% in the sports and recreation merchandise division, 4.7% in the apparel merchandise division and 2.8% in the footwear merchandise division.

Current wording

Net Sales. Net sales increased $47.4 million, or 3.0%, in the 2026 second quarter compared to the prior year second quarter, which was driven by increased sales of 6.3% in the sports and recreation merchandise division and 4.4% in the outdoor merchandise division, partially offset by decreased sales of 1.0% in the footwear merchandise division while the apparel merchandise division remained relatively constant.

Previous wording

We opened 21 new stores since the end of the 2025 first quarter, two of which opened during the 2026 first quarter. During the 2026 first quarter, these 21 stores generated $54.5 million of net sales, including e-commerce. Since re-launching our new store program in 2022, we have opened 65 new stores, 44 of which have been open for at least twelve months. Over the last twelve months, those 44 stores have averaged approximately $13 million in net sales per store, including e-commerce. We believe that performance of new stores in year one is partially affected by the season in which the new store opens and the brand awareness in the region the new store opens.

Current wording

We opened 21 new stores since the end of the 2025 second quarter, three of which opened during the 2026 second quarter. During the 2026 second quarter, these 21 stores generated $61.5 million of net sales, including e-commerce. Since re-launching our new store program in 2022, we have opened 68 new stores, 47 of which have been open for at least twelve months. Over the last twelve months, those 47 stores have averaged approximately $13 million in net sales per store, including e-commerce. We believe that performance of new stores in year one is partially affected by the season in which the new store opens and the brand awareness in the region the new store opens.

Previous wording

E-commerce net sales represented 11.0% of merchandise sales for the 2026 first quarter compared to 10.0% for the prior year first quarter. E-commerce net sales increased 17.4% in the 2026 first quarter over the prior year first quarter.

Current wording

E-commerce net sales represented 12.1% of merchandise sales for the 2026 second quarter compared to 10.9% for the prior year second quarter. E-commerce net sales increased 14.1% in the 2026 second quarter over the prior year second quarter.

Previous wording

Gross Margin. Gross margin increased $20.5 million, or 4.5%, to $479.3 million in the 2026 first quarter from $458.9 million in the 2025 first quarter. As a percentage of net sales, gross margin decreased 80 basis points from 34.0% in the 2025 first quarter to 33.2% in the 2026 first quarter. The decrease of 80 basis points in gross margin was primarily attributable to 110 basis points of unfavorability as a result of tariffs, partially offset by 20 basis points of favorability related to shrink and 10 basis points of favorability related to freight and e-commerce shipping.

Current wording

Gross Margin. Gross margin increased $89.2 million, or 15.5%, to $665.9 million in the 2026 second quarter from $576.7 million in the 2025 second quarter. As a percentage of net sales, gross margin increased 440 basis points from 36.0% in the 2025 second quarter to 40.4% in the 2026 second quarter. The increase of 440 basis points in gross margin was primarily attributable to 510 basis points of favorability from the one-time benefit of IEEPA tariff refunds and 20 basis points of favorability related to shrink, partially offset by 90 basis points of unfavorability in merchandise margin, inclusive of 70 basis points of reinvestment of tariff refunds into strategic pricing.

Previous wording

Income Tax Expense. Income tax expense decreased $0.8 million to $16.2 million for the 2026 first quarter as compared to $16.9 million in the 2025 first quarter, resulting primarily from fluctuations in share-based compensation deductions. ASO, Inc.’s effective tax rate was 23.5% in the first quarter of 2026 compared to 26.9% in the first quarter of 2025. The decrease in the effective tax rate compared to the prior year quarter is primarily due to fluctuations in share-based compensation deductions.

Current wording

Income Tax Expense. Income tax expense increased $1.1 million to $40.5 million for the 2026 second quarter as compared to $39.4 million in the 2025 second quarter, resulting primarily from an increase in pre-tax income. ASO, Inc.’s effective tax rate was 22.7% in the second quarter of 2026 compared to 23.9% in the second quarter of 2025. The decrease in the effective tax rate compared to the prior year quarter is primarily due to the purchase of transferable tax credits and the effect of cross-border tax laws.

Previous wording

Comparable sales increased 2.9% driven by higher comparable sales across all merchandise divisions, except the footwear merchandise division which remained relatively constant. The increase in comparable sales was a result of a 4.5% increase in average ticket, partially offset by a decrease in comparable transactions of 1.5%.

Current wording

Comparable sales increased 1.1% driven by higher comparable sales in the outdoor and sports and recreation merchandise divisions, partially offset by lower comparable sales in the footwear and apparel merchandise divisions. The increase in comparable sales was a result of a 4.7% increase in average ticket, partially offset by a decrease in comparable transactions of 3.6%.

Previous wording

Selling, General and Administrative Expenses. SG&A expenses increased $15.1 million, or 3.9%, to $404.7 million in the 2026 first quarter as compared to $389.6 million in the 2025 first quarter, primarily as a result of our increased strategic investments of $19.0 million in new stores and technology, partially offset by $7.5 million due to lapping the Jordan Brand launch in the 2025 first quarter.

Current wording

Selling, General and Administrative Expenses. SG&A expenses increased $30.3 million, or 3.8%, to $824.2 million for the year-to-date 2026 as compared to $794.0 million for the year-to-date 2025, primarily as a result of our increased strategic investments of $40.0 million in new stores and technology, partially offset by $7.5 million due to lapping the Jordan Brand launch in the 2025 first quarter.

Previous wording

Our principal liquidity requirements are for working capital, capital expenditures and cash used to pay our debt obligations and related interest expense. We also use cash to pay dividends and to repurchase common stock. We fund these liquidity requirements through cash and cash equivalents, cash generated from operating activities, issuances of debt (such as the Notes) and borrowings under our ABL Facility. On May 2, 2026, our cash and cash equivalents totaled $337.8 million. We believe our cash and cash equivalents, as well as our availability under the ABL Facility, will be sufficient to fund our cash requirements for the next 12 months and the longer term foreseeable future.

Current wording

Our principal liquidity requirements are for working capital, capital expenditures and cash used to pay our debt obligations and related interest expense. We also use cash to pay dividends and to repurchase common stock. We fund these liquidity requirements through cash and cash equivalents, cash generated from operating activities, issuances of debt (such as the Notes) and borrowings under our ABL Facility. On August 1, 2026, our cash and cash equivalents totaled $298.2 million. We believe our cash and cash equivalents, as well as our availability under the ABL Facility, will be sufficient to fund our cash requirements for the next 12 months and the longer term foreseeable future.

Previous wording

•Notes - 6.00% fixed rate senior secured notes with $400 million in principal outstanding and full principal maturing November 15, 2027;

Current wording

•Notes - 5.875% fixed rate senior secured notes (the “Notes”) with $500 million in principal outstanding and full principal maturing May 15, 2031; and

Previous wording

On May 14, 2026, Academy, Ltd., a wholly-owned subsidiary of the Company entered into an amendment to the ABL Facility which, among other things, extended the maturity of the ABL Facility to May 14, 2031, and Academy, Ltd., as issuer, issued $500 million in aggregate principal amount of senior secured notes, all of which remains outstanding and matures on May 15, 2031. The Company used the net proceeds from the senior secured notes to fully redeem the Notes, repay the Term Loan in full, pay related fees and expenses, and for general corporate purposes.

Current wording

On May 14, 2026, Academy, Ltd., a wholly-owned subsidiary of the Company, entered into an amendment to the ABL Facility which, among other things, extended the maturity of the ABL Facility to May 14, 2031, and Academy, Ltd., as issuer, issued $500 million in aggregate principal amount of senior secured notes, all of which remains outstanding and matures on May 15, 2031. The Company used the net proceeds from the Notes to fully redeem the 2020 Notes, prepay the Term Loan in full, pay related fees and expenses, and for general corporate purposes.

Previous wording

See Notes 4 and 12 to the accompanying financial statements for further disclosure regarding our debt agreements. The following table summarizes our debt obligations by fiscal year as of May 2, 2026 (amounts in thousands):

Current wording

See Note 4 to the accompanying financial statements for further disclosure regarding our debt agreements. The following table summarizes our debt obligations by fiscal year as of August 1, 2026 (amounts in thousands):

Previous wording

On December 4, 2024, the Company's Board of Directors approved a new share repurchase program under which the Company is authorized to purchase up to $700 million of its outstanding shares during the three-year period ending December 4, 2027 (the “2024 Share Repurchase Program”), and which replaced the previously approved share repurchase program. Under the 2024 Share Repurchase Program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, accelerated share repurchase programs, privately negotiated transactions and/or Rule 10b5-1 or other non-discretionary trading plans, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the 2024 Share Repurchase Program will be determined by the Company in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The 2024 Share Repurchase Program does not obligate the Company to acquire any particular number of common shares, and the program may be suspended, extended, modified or discontinued at any time. As of May 2, 2026, the Company had $338.2 million remaining for share repurchases under the 2024 Share Repurchase Program. See Note 2 to the consolidated financial statements.

Current wording

On December 4, 2024, the Company's Board of Directors approved a new share repurchase program under which the Company is authorized to purchase up to $700 million of its outstanding shares during the three-year period ending December 4, 2027 (the “2024 Share Repurchase Program”), and which replaced the previously approved share repurchase program. Under the 2024 Share Repurchase Program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, accelerated share repurchase programs, privately negotiated transactions and/or Rule 10b5-1 or other non-discretionary trading plans, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the 2024 Share Repurchase Program will be determined by the Company in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The 2024 Share Repurchase Program does not obligate the Company to acquire any particular number of common shares, and the program may be suspended, extended, modified or discontinued at any time. As of August 1, 2026, the Company had $256.1 million remaining for share repurchases under the 2024 Share Repurchase Program. See Note 2 to the consolidated financial statements.

Previous wording

The following table summarizes our share repurchases for the 2026 first quarter (dollar amounts in thousands, except per share amounts):

Current wording

The following table summarizes our share repurchases through the 2026 second quarter (dollar amounts in thousands, except per share amounts):

Previous wording

The following table summarizes our quarterly dividend payments for the 2026 first quarter (amounts in thousands, except per share amounts):

Current wording

The following table summarizes our quarterly dividend payments for the 2026 second quarter (amounts in thousands, except per share amounts):

Previous wording

The following table summarizes our capital expenditures for the thirteen weeks ended May 2, 2026 and May 3, 2025 (amounts in thousands):

Current wording

The following table summarizes our capital expenditures for the twenty-six weeks ended August 1, 2026 and August 2, 2025 (amounts in thousands):

Previous wording

Cash Flows for the Thirteen Weeks Ended May 2, 2026 and May 3, 2025

Current wording

Cash Flows for the Twenty-Six Weeks Ended August 1, 2026 and August 2, 2025

Previous wording

Cash provided by operating activities in the 2026 first quarter increased $3.1 million, compared to 2025 first quarter. This increase is attributable to:

Current wording

Cash provided by operating activities in year-to-date 2026 increased $113.0 million, compared to year-to-date 2025. This increase is attributable to:

Previous wording

•$6.6 million increase in net income; and

Current wording

•$19.1 million increase in net income;

Previous wording

•$2.4 million net increase in cash flows provided by operating assets and liabilities; offset by

Current wording

•$68.6 million net increase in cash flows provided by operating assets and liabilities; and

Previous wording

•$46.7 million increase in cash flows from working capital due to the pull-forward of inventory purchases in the prior year period at pre-tariff rates; and

Current wording

•$62.7 million increase in cash flows from working capital due to the pull-forward of inventory purchases in the prior year period at pre-tariff rates; and

Previous wording

•$46.7 million decrease in prepaid expenses and other current assets largely driven by litigation settlements received in the prior year period and timing of construction reimbursement payments received;

Current wording

•$34.3 million decrease in prepaid expenses and other current assets largely driven by litigation settlements received in the prior year period and timing of construction reimbursement payments received.

Previous wording

Investing Activities. Cash used in investing activities decreased $12.0 million in the 2026 first quarter compared to the 2025 first quarter. This decrease is primarily due to decreased capital expenditures for new stores as well as corporate, e-commerce, and information technology programs in the 2026 first quarter compared to the 2025 first quarter.

Current wording

Investing Activities. Cash used in investing activities increased $3.6 million in year-to-date 2026 compared to the year-to-date 2025. This increase is primarily due to increased capital expenditures for new stores as well as corporate, e-commerce, and information technology programs, partially offset by a decrease in capital expenditures for existing stores and distribution centers in year-to-date 2026 compared to the year-to-date 2025.