Hibbett Sports tops sales and earnings expectations yet again
Birmingham, Alabama-based sportswear retailer Hibbett Sports, Inc. reported a 25% increase in net sales for the first quarter on Friday, leading to a convincing revenue and earnings beat for the second consecutive quarter.
For the first quarter ended May 4, 2019, Hibbett announced that it achieved net sales of $343.3 million, up from $274.7 million in the same period in the previous year. The total beat out Zacks Consensus Estimate cited by Nasdaq by 4.93%.
Much of this growth was thanks to a contribution of $59.4 million from City Gear, acquired by Hibbett at the end of 2018, but comparable-store sales also increased 5.1% in the quarter.
During the quarter e-commerce sales represented 8.3% of total revenues, while solid sales in footwear and sneaker-connected apparel and accessories were sufficiently strong to offset deceleration in licensed products and team sports gear.
Hibbett’s first quarter net income totaled $27.4 million, up from $21.5 million in Q1 2019. Earnings per diluted share were $1.48, compared with $1.12 in the prior-year period. Adjusted for non-recurring items, the company’s diluted EPS of $1.61 beat out the Zacks Consensus Estimate of $1.29.
“Our first quarter results reflect improved performance in both the store and e-commerce channels. We believe our improved web traffic and mobile app, along with continued traction in Buy Online, Pickup in Store, are translating to traffic in our stores and online,” said Hibbett President and CEO Jeff Rosenthal in a release. “Looking ahead, we are committed to the fundamentals of presenting a differentiated customer experience, building best in class teams and driving exceptional execution in all parts of the business.”
Hibbett opened three new retail locations in Q1 and closed 24 underperforming stores, bringing its total store count to 1,144 locations in 35 states at the end of the quarter.
The company intends to shutter around 95 Hibbett stores over the course of fiscal 2020 as part of an ongoing initiative to streamline its retail fleet.
In light of its strong first-quarter results, the company has updated its full fiscal year 2020 financial outlook. Comparable sales are now expected to increase between 0.5% and 2.0%, compared to a previous guidance that ranged from a decrease of 1.0% to an increase of 1.0%. Earnings per diluted share are now predicted to be between $1.70 and $1.85, up from a previous guidance of $1.50 to $1.70.
Since March, Hibbett has also been engaged in the search for a new CEO following the announcement of Rosenthal's departure from the company.
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