Birmingham, Alabama - Hibbett Inc.'s stock (HIBB, -1.76%) surged 5% in premarket trading on Friday following the release of its second-quarter earnings report. The sporting goods retailer exceeded profit expectations and reaffirmed its full-year guidance.
Solid Financial Performance
Hibbett posted a net income of $10.9 million, or 85 cents per share, in comparison to $24.7 million, or $1.86 per share, in the same period last year. Despite experiencing a 4.6% decline in sales, down to $374.9 million, the company's performance outperformed the FactSet consensus of 73 cents per share on revenues of $376.0 million.
Adjusting to Market Challenges
While same-store sales dipped by 7.6%, slightly higher than the projected 7.3% decrease by FactSet, Hibbett managed to navigate through various challenges. CEO Mike Longo attributed their success to a strong start to the back-to-school season and customers' positive response to new product launches.
Longo recognized the impact of high inflation on consumer behavior, prompting them to cut back on discretionary spending. However, he mentioned that Hibbett has focused on offering products that cater to more selective interests, which helped maintain consistency in footwear sales, particularly with their premium brands. On the other hand, their apparel business struggled due to softer demand in a highly promotional environment.
Positive Outlook and Guidance
Despite ongoing headwinds, Hibbett remains optimistic about future growth. They reiterated their full-year guidance, anticipating flat to 2% growth in sales and an EPS range of $7.00 to $7.75.
Hibbett's stock has experienced a significant decline of 46% year-to-date. In contrast, the S&P 500 has seen a 14% increase.