Hibbett sales growth lifts despite online sales dive, lowers guidance

By

Benjamin Fitzgerald

Published
May 29, 2023

Hibbett announced on Friday revenues for the first quarter increased 7.4% to $455.5 million, on the back of solid physical store and comparable sales growth, offsetting a drop in online growth at the sporting retailer.

The Birmingham, Alabama-based company said comparable sales increased 4.1% for the quarter ending April 29. Brick-and-mortar comparable sales were up 4.7%, while e-commerce sales increased 0.6% on a year-over-year basis. E-commerce represented 13.7% of total net sales, compared to 14.6% in the prior-year period.

Net income for the three months was $35.9 million, or $2.74 per diluted share, compared with net income of $39.3 million, or $2.89 per diluted share last year.

“Hibbett posted solid sales results in a challenging environment, delivering a 4.1% comparable sales increase and a total sales increase of 7.4% versus last year. We maintain very good relationships with our valued brand partners that enables us to maintain our new store growth plan and provide the product assortment to meet consumer’s narrowed demand," ​​said Mike Longo, president and chief executive officer.

"We’re investing in our already best-in-class consumer experience while also taking costs out of the business, producing leverage on SG&A of 140 basis points versus last year. We believe our product array and outstanding customer service is a competitive advantage, resulting in market share gains.”

Looking ahead, Hibbett lowered its full-year 2024 outlook. The company now expects full-year EPS to range from $7.00 to $7.55, compared with prior guidance of $9.50 to $10.00. It expects sales to be flat to up 2%, versus prior guidance of up in mid-single digits.