Hibbett H1 sales, earnings dive on lacklustre second-quarter performance

Hibbett H1 sales, earnings dive on lacklustre second-quarter performance

Hibbett Inc. announced on Thursday revenues for the second quarter declined by single digits, as comparable store sales plunged, sending first-half revenues and profits down for the six months ending July 30. 

Half-year net incomewas halved to $64.1 million, or$4.77per diluted share, compared with$131.5 million, or$7.90per diluted share last year. – City Gear

The Birmingham, Alabama-based company said net sales for the 26-weeks period decreased 11.8% to $816.9 million compared with $926.1 million. Comparable sales decreased 14.5% versus the same period last year, but increased by 36.2% compared to 2019. Brick and mortar comparable sales declined 17.4% and e-commerce sales increased 6.2% compared to the 26-week period last year.

Net income was halved to $64.1 million, or $4.77 per diluted share, compared with $131.5 million, or $7.90 per diluted share last year.

For the second quarter, ​net sales decreased 6.3% to $392.8 million compared with $419.3 million for the 13-weeks period last year. Comparable sales decreased 9.2% versus the prior year but increased by 54.4% compared to the 13-weeks ended August 3, 2019. Brick and mortar comparable sales declined 11.9% while e-commerce sales increased 8.3% on a year-over-year basis, said the athletic fashion retailer.

Net income fell to $24.7 million, or $1.86 per diluted share, compared with net income of $46.7 million, or $2.86 per diluted share.

“Our team delivered a solid second quarter performance. We were able to achieve this result by improving our inventory position while providing a compelling selection of in-demand product, delivering superior in-store customer service and leveraging our best-in-class omni-channel platform,” ​said Mike Longo, president and chief executive officer.

“We were pleased with the resiliency of our consumer and the strong loyalty for our key brands. We believe some of our back-to-school sales shifted into the third quarter as consumers delayed shopping until closer to school start dates. As expected, margins were affected by continued high freight costs and the deleveraging of store and other fixed costs.”

Looking ahead, Hibbett said it expects fiscal 2023 total net sales to increase in the low-single digit range in dollars compared to its fiscal 2022 results. 


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