- Athletic-inspired fashion retailer Hibbett Inc HIBB reported third-quarter FY22 sales growth of 13.5% year-on-year to $433.16 million, missing the consensus of $445.73 million.
- Comparable sales increased 9.9% versus the prior year.
- Brick and mortar comparable sales rose 7.9%, while e-commerce sales increased 22% on a Y/Y basis.
- The gross margin contracted 200 basis points Y/Y to 34.3%. The operating margin compressed from 8.8% to 7.9%, and operating income for the quarter rose 2.4% to $34.2 million.
- EPS of $1.94 missed the analyst consensus of $2.47.
- Hibbett held $25.1 million in cash and equivalents as of October 29, 2022.
- Store count at the end of Q3 was 1,126 versus 1,086 last year.
- Inventory at Q3 end was $404.8 million, a 56.4% increase over last year.
- CEO Mike Longo said, "We experienced strong demand for our popular lines of footwear, reflecting continued consumer loyalty to our key brands while our apparel sales for the quarter were pressured by a more competitive pricing environment. Additionally, margins were affected by continued high freight and fuel costs and wage inflation."
- "As we enter the fourth quarter and the busy holiday selling season, we believe we are well positioned to meet our objectives for Fiscal 2023. As a result, we are confirming our previous full-year guidance," Longo concluded.
- Outlook: Hibbett continues to expect FY23 sales to increase in the low-single-digit range in dollars.
- HIBB expects FY23 comparable sales to be flat to positive low-single digits.
- It reiterated the FY23 EPS forecast of $9.75 - $10.50 versus the consensus of $9.76.
- Price Action: HIBB shares are trading lower by 7.44% at $62.57 in premarket on the last check Tuesday.
- Photo Via Wikimedia Commons
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