Hibbett sales slip in second quarter
Sports apparel and footwear retailer Hibbett, Inc. announced net sales of $419.3 million for the second quarter on Friday, down 5.1% from $441.6 million in the prior-year period, when the company was one of the few in its sector that chose not to implement temporary store closures.
For the second quarter ended July 31, 2021, Hibbett’s brick-and-mortar comparable sales fell 3.8%, while e-commerce sales declined 20.4%. E-commerce accounted for 13.1% of total net sales, compared to 15.7% in the same period in the previous year. Overall, the retailer’s comparable sales decreased 6.4% compared to the prior-year period.
As highlighted by Hibbett president and CEO Mike Longo, the company’s revenue in the second quarter of the previous year was boosted by pent-up consumer demand and stimulus money, with the retailer keeping its stores open as many of its competitors temporarily shut their doors in response to the Covid-19 pandemic.
Compared to the same period two years ago, when revenues totaled $252.4 million, the company’s latest Q2 sales represented a 66.1% increase. Comparable sales rose 72.8%, with brick-and-mortar comps jumping 64.5% and e-commerce sales surging 153.3%.
“We believe our significant revenue growth and profitability over the previous two years ago demonstrates that our strategy of delivering a compelling assortment of highly coveted merchandise coupled with superior customer service and a best-in-class omni-channel platform will continue to drive strong top and bottom line performance,” explained Longo in a release.
Net income for the second quarter ended July 2021 was $46.7 million, or $2.86 per diluted share, compared with a net income of $40.4 million, or $2.38 per share, last year.
Year to date, Hibbett’s sales were $926.1 million, up 30.2% compared with $711.4 million at the same time last year, while comparable sales rose 30.3%. This reflected a 39.9% rise in brick-and-mortar comparable sales and an 11.4% decrease in e-commerce sales.
Net income for the six-month period was $131.5 million, or $7.90 per diluted share, up from $25.1 million, or $1.50 per diluted share, in the first half of the previous year.
In light of its performance in the second quarter, Hibbett has raised its financial outlook for the full fiscal year. The company now expects its comparable sales to be in the positive mid-teens versus the previous year, while diluted earnings per share are predicted to be in the range of $11.00 to $11.50.
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