Hibbett Inc (HIBB) Raises Full-Year Fiscal 2024 EPS Guidance Despite Sales Dip
Hibbett Inc (NASDAQ:HIBB) reports a slight decrease in Q3 net sales by 0.3% year-over-year, with a 2.7% drop in comparable sales.
Diluted EPS for Q3 rises to $2.05, up from $1.94 in the previous year, as the company tightens expense management.
E-commerce sales climb by 12.6%, now representing 17.0% of total net sales, showcasing a strategic shift towards digital channels.
Full-year Fiscal 2024 diluted EPS guidance is raised to $8.00 - $8.30, reflecting confidence in operational efficiency and market positioning.
On November 21, 2023, Hibbett Inc (NASDAQ:HIBB) released its 8-K filing, announcing third-quarter results for the period ended October 28, 2023. The company's President and CEO, Mike Longo, expressed satisfaction with the results, attributing them to strategic execution and a strong back-to-school season. Despite a challenging retail landscape, Hibbett Inc (NASDAQ:HIBB) believes it continues to gain market share.
Financial Performance Overview
Hibbett Inc (NASDAQ:HIBB) reported a marginal decline in net sales for the third quarter, totaling $431.9 million, compared to $433.2 million in the same period last year. The company experienced a 2.7% decrease in comparable sales, with brick-and-mortar sales falling by 5.4%. However, e-commerce sales provided a silver lining, increasing by 12.6% and accounting for a larger slice of the revenue pie at 17.0% of total net sales.
Gross margin saw a slight contraction to 33.9% of net sales, down from 34.3% in the prior year, primarily due to increased promotional activities and a lower average product margin. Store operating, selling, and administrative expenses improved, dropping to 23.0% of net sales, reflecting Hibbett Inc (NASDAQ:HIBB)'s focus on expense management and efficiency gains.
Net income for the quarter remained relatively stable at $25.5 million, translating to a diluted earnings per share (EPS) of $2.05, an increase from $1.94 per diluted share in the previous year. This improvement is attributed to the company's operational discipline and strategic expense reductions.
Balance Sheet and Cash Flow Highlights
As of October 28, 2023, Hibbett Inc (NASDAQ:HIBB) reported $29.6 million in cash and cash equivalents, with total debt standing at $96.9 million on its unsecured line of credit. Inventory levels were managed effectively, showing a 1.7% decrease compared to the prior year's third quarter.
The company continued its shareholder-friendly activities, repurchasing over 700,000 shares for $32.0 million and paying out a quarterly dividend of $0.25 per share, resulting in a cash outlay of $3.1 million.
Year-to-Date and Future Outlook
For the 39-week period ended October 28, 2023, Hibbett Inc (NASDAQ:HIBB) saw a 1.0% increase in net sales to $1.26 billion. However, comparable sales dipped by 1.9% year-over-year. The company has raised its full-year Fiscal 2024 diluted EPS guidance to a range of $8.00 to $8.30, signaling confidence in its operational efficiency and market position despite ongoing economic headwinds.
Hibbett Inc (NASDAQ:HIBB) remains committed to its strategic initiatives, including the Connected Partnership with Nike, which aims to enhance the customer experience across all retail channels. With a solid foundation and a clear focus on serving customers and delivering shareholder value, Hibbett Inc (NASDAQ:HIBB) is poised for a strong finish to Fiscal 2024.
Investors and interested parties can access further details and a replay of the earnings webcast on Hibbett Inc (NASDAQ:HIBB)'s investor relations website.
Explore the complete 8-K earnings release (here) from Hibbett Inc for further details.
This article first appeared on GuruFocus.
