Hibbett Sports Cuts FY17 Earnings View Below Estimates On Weak Q2 Results

(RTTNews) - Hibbett Sports, Inc. (HIBB) on Friday lowered its fiscal 2018 forecast, citing weak results in the second quarter.

In pre-market activity, shares were losing 4.4 percent to $11.

For the year, earnings per share are now expected in the range of $1.25 to $1.35, compared with previous guidance of $2.35 to $2.55.

On average, 15 analysts polled by Thomson Reuters expect earnings of $1.74 per share. Analysts' estimates typically exclude special items.

Comparable store sales are now expected in the negative mid to high single-digit range, which compares with previous guidance in the range of negative 1% to positive 1%.

Further, the company projects a reduction in gross margin rate of 250 to 285 basis points, compared with previous guidance of a reduction in gross margin rate of 55 to 75 basis points.

The company sees continued soft sales for the remainder of the year due to a challenging retail environment, and gross margin pressure due to the promotional environment in the industry.

For the second quarter, net loss was $3.2 million, compared with net income of $6.5 million last year. Loss per share was $0.15, compared with earnings of $0.29 per share a year ago.

Net sales decreased 9.2% to $188.0 million from $206.9 million in 2016. Comparable store sales decreased 11.7%.

Analysts expected a loss of $0.20 per share on sales of $190.16 million for the quarter.

Jeff Rosenthal, President and Chief Executive Officer, stated, "We experienced a very difficult retail environment in the quarter, with a significant decline in transactions and resulting pressure on gross margin. ...Looking forward, we expect the external environment to remain challenging.."