Hibbett Sports Profit Tops Estimates; Lifts Full-Year Earning View

(RTTNews) - Sporting goods retailer Hibbett Sports, Inc. (HIBB) Friday reported a decline in the third-quarter profit, reflecting higher store occupancy costs amid increased store openings and deleveraging effect of lower comparable store sales. Earnings per share, however, increased slightly and topped the Street estimates. The company also lifted its earnings outlook for fiscal 2015.

Net sales grew 5.0 percent from last year, but missed analysts' view.

For the third quarter ended November 1, 2014, the company's net income declined to $16.89 million from $17.25 million in the previous year. Meanwhile, earnings per share edged up to $0.67 from $0.66 per share a year earlier.

On average, 19 analysts polled by Thomson-Reuters expected the company to earn $0.62 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 5.0 percent to $218.32 million from $207.97 million last year, but came in below analysts' estimate of $222.49 million. Comparable-store-sales were up 0.6 percent.

Store operating, selling and administrative expenses advanced to $48.2 million from $45.5 million a year ago. The company noted that the expenses were higher as a percentage of net sales mainly due to the deleveraging effect of lower comparable store sales.

Depreciation and amortization expenses totaled $4.14 million, higher than $3.55 million a year earlier.

For the fiscal year ending January 31, 2015, the company expects earnings per share to be in the range of $2.72 to $2.77, up from the prior outlook of $2.63 to $2.73 per share. Analysts now expect earnings of $2.69 per share for the year.

The firm also reaffirmed its guidance for increase in comparable-store-sales in the low single-digit range.

HIBB closed Thursday's regular trading at $45.93, up 3.03 percent.