Hibbett fourth-quarter sales uptick salvages full-year

By

Benjamin Fitzgerald

Published
Mar 6, 2023

U.S. sporting retail group Hibbett announced net sales for the fourth quarter ended January 28 increased 19% to $458.3 million, helping the firm log a small uptick in annual sales for fiscal 2023, overcoming environmental headwinds.

The Birmingham, Alabama-based company said sales for the full-year inched forward 1% to ​$1.71 billion compared with $1.69 billion, for the 52-week period, with comparable sales decreasing 2.2%. Brick-and-mortar comparable sales fell 4.9% and e-commerce sales increased 14% for the twelve months.

Annual net income fell to $128.1 million, or $9.62 per diluted share, from $174.3 million, or $11.19 per diluted share in the prior-year period.

However, fourth-quarter income grew to $38.4 million, or $2.91 per diluted share, compared to $17.7 million, or $1.25 per diluted share last year, signalling a return to growth for the owner of Hibbett and City Gear stores.

“Hibbett delivered a solid performance for the fourth quarter of fiscal 2023, highlighted by strong top line growth," said ​Mike Longo, president and chief executive officer. "Comparable sales improved 15.5% over the fourth quarter last year, marking a positive finish to fiscal 2023.

"Our sales for the fourth quarter and full year reflect continued high demand for our popular footwear brands as consumers continued to pay premium prices for the latest product launches. We were especially pleased with the strong performance in our e-commerce business, which continues to account for a greater percentage of our overall sales than the prior year. Our premium omni-channel platform offers an efficient shopping and delivery experience for our customers, and we remain excited about the opportunities for continued expansion," Longo added.

Looking ahead, total net sales for fiscal 2024 are anticipated to be up mid-single digits, citing 
several headwinds including inflation, higher interest rates and a more promotional retail environment."

"We anticipate consumers will be more cautious in their discretionary spending and while we still feel our unique assortment of high demand footwear will drive traffic and sales, margins are expected to be negatively impacted," added Longo.

"We will continue our store expansion efforts and believe there are significant opportunities to expand our coverage in more underserved areas in both existing and new markets. We look forward to the opportunities to continue building our Hibbett and City Gear brands and deliver greater value to our customers and shareholders in the future.”