Hibbett Sports Q2 Profit Down, Yet Tops Estimates; Backs FY Outlook - Update

(RTTNews) - Sporting goods retailer Hibbett Sports, Inc. (HIBB) Friday reported a decline in second-quarter profit, amid nearly flat comparable stores sales as well as store occupancy and logistics costs. Net sales, however, grew about 4 percent. Earnings per share topped analysts' estimates, while revenues missed view. The company also backed its outlook for the full year.

For the second quarter ended August 2, the company's net income declined to $8.38 million or $0.32 per share from $10.54 million or $0.40 per share a year earlier.

On average, 19 analysts polled by Thomson-Reuters expected earnings of $0.31. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 4.1 percent to $193.92 million from $186.24 million in the preceding year, but came below analysts' estimate of $201.05 million. Comparable store sales edged up 0.1 percent.

Store operating, selling and administrative expenses advanced to $46.63 million from $43.64 million a year ago. The company noted that these expenses were in line with its original expectations, but were higher as a percentage of net sales mainly due to lower-than-anticipated comparable store sales.

Depreciation and amortization were $4.06 million, up from $3.32 million.

Gross profit was 33.2 percent of net sales, compared with 34.3 percent in the prior year, partially due to markdowns related to slow selling and aged inventory, as well as store occupancy and logistics costs.

During the period, the firm opened 16 new stores. At the end of the quarter, its store count was 950, compared to 892 stores last year.

For the fiscal year, the company still expects annual earnings of $2.63 to $2.73 per share and a low, single-digit increase in comparable store sales. Analysts are looking for earnings of $2.68 per share for the fiscal.

HIBB closed Thursday's regular trading at $46.83 on the Nasdaq.