Hibbett clocks Q3 sales dip, lifts earnings guidance for full year on promising holiday period
U.S sporting goods retailer Hibbett said net sales for the third quarter decreased 0.3% to $431.9 million, weighed down by a drop in comparable sales across the firm’s brick-and-mortar locations.
For the 13-weeks ended October 28, comparable sales decreased 2.7%, with brick-and-mortar comparable sales declining 5.4%, partially offset by e-commerce sales, up 12.6% on a year-over-year basis.
Net income for the 13-weeks was $25.5 million, or $2.05 per diluted share, flat on the same period last year.
Meanwhile, net sales for the first nine months increased 1% to $1.26 billion, said the Alabama-based Hibbett.
“Our solid financial results for the third quarter of fiscal 2024 reflect our ability to consistently execute our strategy, and we believe we continue to gain market share in a challenging retail environment,” said Mike Longo, president and chief executive officer.
“Our sales were in line with our expectations, boosted by a strong back-to-school season during the first month of the quarter. We also benefited from a more normal seasonal schedule of new launch products throughout the quarter, with a positive response from our loyal customers to the latest trend-relevant brands and products.”
As a result of the nine-month uptick, Hibbett said it is raising its fiscal 2024 earnings guidance from $7.00 to $7.75 diluted earnings per share. The company now expects to report $8.00 to $8.30 diluted earnings per share for the year.
“As we enter the fourth quarter and our busy holiday selling season, we believe we are well positioned for a strong finish to fiscal 2024,” said Longo.
“We expect to benefit from additional new product launches that will continue to attract and retain customers and extend our market reach. With the previous supply chain issues behind us, we are confident in our ability to meet customer demand with a favorable inventory level. We believe fiscal 2024 will be another solid year for Hibbett as we remain focused on our primary objectives to serve our customers and deliver greater value for our shareholders.”
