Athletic-inspired fashion retailer Hibbett, Inc. HIBB reported first-quarter FY23 sales growth of 7.4% year-on-year to $455.50 million, missing the consensus of $460.40 million.
- EPS of $2.74 missed the analyst consensus of $3.04.
- Consumer confidence has weakened, which has impacted purchasing behavior, especially for discretionary products and services. These factors weighed on the quarter under review.
- Comparable sales increased by 4.1% versus the prior year.
- Brick and mortar comparable sales were up 4.7%, while e-commerce sales increased 0.6% on a year-over-year basis.
- The gross margin contracted 330 basis points Y/Y to 33.7%, dragged by lower average product margin due to higher promotional activity across footwear and apparel.
- Hibbett held $26.9 million in cash and equivalents as of April 29, 2023.
- Store count at the end of Q1 was 1,143 versus 1,105 last year.
- Inventory at Q1 end was $438.0 million, a 39.1% increase Y/Y.
- CEO Mike Longo said, "Notwithstanding our more cautious near-term consumer outlook, we believe Hibbett remains well positioned for the long-term to continue to grow and increase market share."
- Outlook: Hibbett lowered its FY24 outlook.
- The company expects sales to be flat or rise by up to ~2.0% in dollars. Earlier, the company expected sales to be up mid-single digits.
- Diluted EPS is expected to be $7.00 to $7.75, lower than prior guidance of $9.50 to $10.00. The analyst consensus is at $9.26.
Price Action: HIBB shares were down 9.4% at $40.01 at the last check on Friday.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in