Yahoo Finance Hibbett Sports Tops 1st-Quarter Earnings and Revenue Projections
Sporting shoes retailer Hibbett Sports Inc. (NASDAQ:HIBB) released its fiscal first-quarter earnings on May 26 before the market opened. The company's earnings and revenue surpassed expectations, but were down from the same quarter last year.
Snapshot of the quarter
The company's net loss for the quarter was $15.3 million, or 92 cents per share, down from net income of $27.9 million, or $1.50 per share, for the year-ago quarter. The company's adjusted earnings per share stood at 31 cents, which was more than the analyst consensus estimate of 19 cents. Revenue of $269.8 million was down 21.4% year-over-year but surpassed analyst predictions of $211 million.
Comparable store sales for the quarter ended May 2, 2020 plunged by 19.5%. E-commerce sales jumped a mammoth 110.5% and made up 22.3% of the total net sales of the quarter. SG&A expenses climbed to 33.1% of sales compared to 21.6% of sales in the year-ago quarter due to coronavirus-related costs.
Digital traffic climbed more than 80%, while conversion was up 26% during the quarter. The company stated that over 40% of the online sales in the latter half of the quarter were to new customers.
CEO Mike Longo had the following to say:
"We reinforced our best-in-class digital platform with extra product, marketing, and an emphasis on fulfilment from the distribution centers and the stores, including curbside pick-up. As a result, we gained many first-time customers. Through the hard work of our Hibbett Sports and City Gear stores, the dedication of our distribution center employees and the seven day a week work from our people in the Store Support Center, we accomplished a result that we believe sets us apart from the majority of retail."
Inventory position
At the end of the quarter, the company had inventory of $242 million, which reflected a decline of 2.6% from the first quarter of the previous year. This reflected efforts to manage strong e-commerce demand.
Store details
During the quarter, the Alabama-based sporting goods retailer launched three stores and rebranded two Hibbett stores to City Gear stores. Additionally, the company shut down as many as eight stores, which included underperforming stores and stores meant for rebranding. As of May 2, 2020, the company had a total of 1,078 stores in 35 states.
Outlook
Hibbett Sports did not provide fiscal 2021 outlook, citing the global uncertainty caused by the coronavirus pandemic.
Disclosure: I do not hold any positions in the stocks mentioned.
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This article first appeared on GuruFocus.
