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Today's Research Reports on Stocks to Watch: Foot Locker and Hibbett Sports

NEW YORK, NY / ACCESSWIRE / August 27, 2018 / Athletic apparel stocks Foot Locker and Hibbett Sports both saw big losses in Friday's session after reporting second quarter results.

RDI Initiates Coverage on:

Foot Locker, Inc.
https://www.rdinvesting.com/report/?ticker=FL

Hibbett Sports, Inc.
https://www.rdinvesting.com/report/?ticker=HIBB

Foot Locker, Inc. shares were down 9.17% at the close on Friday with trading volume around six times higher than usual. The sports apparel and shoe retailer went lower after reporting second quarter results that revealed a modest growth of 0.5% for comparable store sales. This was lower than the street's expectation of 0.7% growth in comparable store sales. Earnings per share for the quarter was 75 cents, coming in higher than the 70 cents expected. It was also higher than the 62 cents in the year ago period. Revenues of $1.78 billion also beat estimates by $18 million and was higher than the $1.70 billion in the period last year. CEO Richard A. Johnson stated during the earnings call, "Overall, the second quarter was in line with our expectations as we posted a positive comp gain and grew earnings per share by 21%. This performance reflects the work we are doing on several fronts so that we are well positioned to succeed in a rapidly evolving environment. Our customers are moving fast. Our industry is adapting to get closer and faster to market, and we are changing our business to not only keep up with the change but to come out ahead of it."

Access RDI's Foot Locker, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=FL

Hibbett Sports, Inc. shares were down 30.19% on Friday on roughly 6.8 million shares traded. Average trading volume for the athletic specialty stores company is around 727,000 shares. It was a surprise miss in the company's second quarter financial results that sent shares tumbling. Losses for the company's fiscal second quarter of 2019 came in at 6 cents while analysts had been waiting for earnings per share of 7 cents. It was still an improvement over the loss of 15 cents a share seen in the same period a year ago. A net loss of $1.22 million was also better than the $3.18 billion in the year ago quarter. Revenue at $211.12 million was an improvement next to the $187.96 million a year ago but was also behind the $215.39 million expected by analysts. The company also lowered its guidance for fiscal 2019 leaving it hard for traders to feel confident. The company now expects full year EPS to range between $1.57 to 1.75 as compared to the previous expectation of EPS range of $1.65-1.95. CEO Jeffry O. Rosenthal said optimistically during the earnings call, "We continue to make investments for the long-term success of the business, and we are starting to see benefits from these investments in our operations. Although we experienced softness in our licensed, equipment and accessory business in the quarter, we've seen significant movement in branded apparel and footwear. We are very encouraged by the acceleration of our e-commerce business. Additionally, our gross margin rate continues to show significant improvement with cleaner inventory and much more full-priced selling. Looking forward, we expect continued improvement in our assortments as we approach the holiday season and to benefit from our omni-channel initiatives with the rollout, a Buy Online, Pick up in Store and Reserve in Store. This upcoming quarter, we will see enhancements in our omni-channel capabilities."

Access RDI's Hibbett Sports, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=HIBB

Our Actionable Research on Foot Locker, Inc. (NYSE: FL) and Hibbett Sports, Inc. (NASDAQ: HIBB) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com