- Athletic-inspired fashion retailer Hibbett Inc HIBB reported a second-quarter FY22 sales decline of 6.3% year-on-year to $392.81 million, missing the consensus of $395.12 million.
- Comparable sales decreased 9.2% versus the prior year but increased by 54.4% versus 2Q20.
- Brick and mortar comparable sales declined 11.9%, while e-commerce sales increased 8.3% on a Y/Y basis.
- The gross margin contracted 460 basis points Y/Y to 34.4%. The operating margin compressed from 14.7% to 8.4%, and operating income for the quarter fell 47% to $32.8 million.
- EPS of $1.86 missed the analyst consensus of $2.18.
- Hibbett held $28.4 million in cash and equivalents as of July 30, 2022.
- Store count at the end of Q2 was 1,117 versus 1,080 last year.
- Inventory at Q2 end was $366.2 million, a 68.9% increase over last year.
- CEO Mike Longo said, "Looking ahead, we believe we are well-positioned as we enter the second half of the year. Inventory was well positioned at the end of the second quarter resulting in favorable sales trends for the back-to-school shopping season, and we anticipate continued improvement from a supply chain standpoint."
- Outlook: Hibbett expects FY23 sales to increase in the low-single-digit range in dollars (prior view: relatively flat).
- HIBB expects FY23 comparable sales to be flat to positive low-single digits (previous view: negative low-single digits).
- It reiterated the FY23 EPS forecast of $9.75 - $10.50 versus the consensus of $9.66.
- Price Action: HIBB shares are trading higher by 5.79% at $60.68 on the last check Thursday.
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