Hibbett Sports reports Q3 earnings, net sales fall below expectations
U.S.- based athletic fashion retailer Hibbett Sports Inc. (HIBB) reported Tuesday fiscal third-quarter earnings and sales that missed expectations, although same-store sales beat, and cut its full-year profit outlook.
According to ’MarketWatch’, the athletic-inspired fashion retailer's stock was still inactive in premarket traded. Net income fell to 1.5 million dollars, or 8 cents a share, from 7.6 million dollars, or 37 cents a share, in the same period a year ago.
Excluding non-recurring items, such as costs related to the acquisition of City Gear, adjusted earnings per share came to 14 cents, below the FactSet consensus of 16 cents. Net sales fell to 216.9 million dollars from 237.8 million dollars, short of the FactSet consensus of 217.4 million dollars, while same-store sales grew 0.1 percent to beat expectations of a 0.2 percent decline. Gross margin was 33.3 percent of net sales for the 39-week period ended November 3, 2018, compared with 32.6 percent for the 39-week period ended October 28, 2017.
Accordingly, the company cut its adjusted EPS guidance range for fiscal 2019 to 1.55 dollars to 1.65 dollars (previously 1.57 to 1.75 dollars). On the upside, the retailer increased its same-store sales outlook to flat to up 1.0 percent from down 1.0 percent to up 1.0 percent.
"We continue to see good momentum in our branded apparel business, which helped offset softness in our licensed, equipment, and accessories business in the quarter," Jeff Rosenthal, president and CEO, stated in a financial release.
Looking ahead, the retailer relies on footwear and e-commerce businesses’ potential. “Footwear comparable sales were relatively flat, although we see potential upside in the fourth quarter as the depth of our premium products continues to improve. Our e-commerce business continues to exceed expectations, and we expect continued traction as we benefit from enhancements to our mobile app and our new Buy Online, Pick up in Store and Reserve Online capabilities,” read the official update.
For the quarter, Hibbett opened seven new stores, expanded or relocated one store and closed 24 underperforming stores, bringing the store base to 1,042 in 35 states as of November 3, 2018.
The stock has lost 12 percent year to date, while the S&P 500 SPX, is little changed, highlights ‘MarketWatch’.
Net sales for the 39-week period ended November 3, 2018, increased 0.2 percent to $702.7 million