Why Hibbett Shares Are Falling Today

·1 min read
  • Athletic-inspired fashion retailer Hibbett, Inc. (NASDAQ: HIBB) reported fourth-quarter FY23 sales growth of 19.6% year-on-year to $458.29 million, missing the consensus of $476.57 million.

  • Comparable sales increased 15.5% versus the prior year but increased by 39.6% versus 4Q20.

  • Brick and mortar comparable sales climbed 14.3%, while e-commerce sales increased 21.4% on a Y/Y basis.

  • Gross margin expanded 10 basis points Y/Y to 35.2%. The operating margin expanded from 6% to 11.1%, and operating income for the quarter jumped 119% to $50.7 million.

  • EPS of $2.91 missed the analyst consensus of $2.94.

  • Hibbett held $16.0 million in cash and equivalents as of Jan. 28, 2023.

  • Store count at the end of Q4 was 1,133 versus 1,096 last year.

  • Inventory at Q4 end was $420.8 million, a 90.2% increase over last year.

  • Outlook: Hibbett expects FY24 sales to break down as: Q1-26%, Q2-22%, Q3-24% and Q4-28%.

  • HIBB expects FY24 comparable sales to increase in the low-single-digit range. HIBB expects FY24 EPS of $9.50 - $10.00.

  • Net new store growth is expected to be in the range of 40 to 50 stores.

  • Price Action: HIBB shares are trading lower by 2.00% at $69.14 on the last check Friday.

  • Photo Via Wikimedia Commons

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This article Why Hibbett Shares Are Falling Today originally appeared on Benzinga.com


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