Why Hibbert Sports Is Getting Crushed
Hibbert Sports shares were crushed after it released disappointing quarterly results before the markets opened on Friday.
Hibbert Sports Inc. (NASDAQ: HIBB) released its most recent quarterly results before the markets opened on Friday. The company said that it had a net loss of $0.06 per share and $211.1 million in revenue, compared with consensus estimates that called that for $0.07 in earnings per share on revenue of $215.4 million for the second quarter. The same period of last year reportedly had a net loss of $0.15 per share and $187.96 million in revenue.
During the most recent quarter, comparable sales increased 4.1%. E-commerce sales represented 8.0% of total sales for the second quarter.
Hibbett opened six new stores; expanded, relocated or remodeled three stores; and closed 15 underperforming stores, bringing its store base to 1,059.
Looking ahead to the 2019 fiscal year, the company expects to see EPS in the range of $1.57 to $1.75 and comparable sales of −1% to 1%. This is down from the previous guidance of EPS of $1.65 to $1.95 and comparable sales of −1% to 2%. Consensus estimates call for $1.84 in EPS and $960.77 million in revenue for the year.
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Jeff Rosenthal, president and CEO, commented:
We continue to make investments for the long-term success of the business, and we are starting to see the benefits from these investments in our operations. Although we experienced continued softness in our licensed, equipment, and accessories business in the quarter, we see good momentum in branded apparel and footwear, and are very encouraged by the acceleration of our e-Commerce business. Additionally, our gross margin rate continues to show significant improvement with cleaner inventory and more full-priced selling. Looking forward, we expect continued improvement in our assortments as we approach the holiday season, and we expect further benefit from our omni-channel initiatives with the rollout of Buy Online, Pick up in Store and Reserve in Store.
Shares of Hibbert were last seen down about 25% at $21.95, with a consensus analyst price target of $25.36 and a 52-week range of $11.05 to $29.60.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
