Hibbett Sports (HIBB, $52.50) Q1 earnings missed Zacks Consensus Estimate

Hibbett Sports posted first quarter earnings that fell short of Zacks Consensus expectations. Revenue, however, topped estimates despite a year-over-year decline.

The sports apparel company’s adjusted earnings came in at $2.89 per share for the quarter, below Zacks Consensus Estimate of $3.29. The EPS is -42% lower than the year-ago quarter’s $5.00.

Net sales plunged -16.3% year over year to $424 million for the quarter, but exceeded Zacks Consensus Estimate of $406 million.

Comparable store sales (comps) decreased +18.9%, while in-store comps fell -22% .

E-commerce sales climbed +4.1% for the quarter under review. It  soared + 116.9% on a two-year basis.

The gross profit margin contracted 440 basis points (bps) to 37% due to high store occupancy, increasing average product costs, and higher freight and transportation costs. Operating margin contracted -970 bps to 12% for the quarter.

Hibbett updated its FY 2023 earnings toutlook to  $9.75-$10.50 per share, and its FY23 forecast to $9.75-10.50 a share.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.