Hibbett Sports, Inc. (Nasdaq: HIBB) early Friday posted [Mar 10, 2017 | 6:37am] mixed fourth quarter earnings results and offered an in-line outlook for the current year, as sales at established stores decline and margins fall.
Written by StockNews.com
The Birmingham, AL-based regional sporting goods retailer reported Q4 earnings per share (EPS) of $0.54, which was in-line with the Wall Street consensus estimate of $0.54.
Revenues rose just 0.5% from last year to $246.9 million, however, missing analysts’ view for $254.45 million.
On another sour note, HIBB said that comparable store sales (“comps”) in the latest period fell 2.2%, hurt by weaker apparel and equipment revenues, but bolstered by strong footwear sales. Comps are considered a key indicator of a retailer’s health, since they only measure the year-over-year sales performance of stores open at least 12 months.
The company’s margins also declined in the fourth quarter, with profits hitting 33.0% of net sales, down from 34.8% in the year-ago period.
Looking ahead, Hibbett forecast full-year fiscal 2018 EPS ranging from $2.65 to $2.85, which straddles analysts’ view of $2.74. It also sees comps rising in the low-single digit range.
The company commented on its lackluster results via press release:
“Results did not meet our expectations for the quarter, although we were pleased with continued strength in our footwear business. The decline in comparable store sales was driven mainly by softer sales in apparel and equipment. Licensed products accounted for much of the weakness in apparel, while equipment was negatively impacted by weakness in team sports, fitness and accessories.”
Although the latest period wasn’t great, HIBB remains optimistic for the future:
“Looking forward, we are excited about the progress we are making on our major initiatives, and expect them to have a favorable impact on revenue growth in Fiscal 2018 and beyond. Our store-to-home capability is scheduled to begin rollout in the first quarter of this year, which will enable us to use our entire chain to locate an item and send it directly to the customer’s home. We are also on track to launch our e-commerce site in the back half of Fiscal 2018, which will be fully integrated with our stores, and will include an enriched customer loyalty program. Once implemented, we believe these initiatives will provide an outstanding customer experience, and will position us well to drive long-term growth and shareholder value.”
