Hibbett Sports beats sales estimates but falls short on earnings
Birmingham, Alabama-based sports and footwear retailer Hibbett Sports, Inc. announced a mixed bag of fourth-quarter financial results on Friday, as sales came in over Wall Street estimates but profits disappointed.
For the fourth quarter ended February 1, 2020, the company announced net sales of $313.0 million, up 2.3% from $306.0 million in the same period in the previous year, while comparable sales rose 4.0%.
Growth was driven by a 37% increase in e-commerce sales, which accounted for 14.2% of the company’s total revenue. The footwear and connected apparel categories also experienced strong growth in the quarter.
Quarterly net income totaled $6.0 million, or $0.34 per diluted share, falling from $6.6 million, or $0.36 per share, in the prior-year period. Adjusted earnings per share were $0.51.
FactSet analysts cited by MarketWatch had expected Hibbett to post adjusted earnings per share of $0.62 on revenues of $304 million.
Over the course of Q4, Hibbett opened four stores and closed 23, finishing the quarter with a network of 1,081 retail locations in 35 U.S. states.
For the full fiscal year 2020, the company’s net sales increased 17.4% to $1.2 billion, compared to $1.0 billion in fiscal 2019, while comparable store sales rose 5.3%.
Net income for the 12-month period came to $27.3 million, or $1.52 per diluted share, slipping from $28.4 million, or $1.51 per diluted share, in the previous year.
“The Coronavirus has injected a measure of uncertainty in the market. Like all retailers, we are monitoring the situation and taking the necessary steps to safeguard our customers, our employees, and our stockholders,” explained Hibbett president and CEO Mike Longo in a release.
“Currently, we do not anticipate any material disruption to our supply chain during the first quarter. We have experienced a slowdown in demand this week. However, we believe we have ample liquidity and financial flexibility to navigate this period of uncertainty, while positioning Hibbett for future success," he added.
Contrary to a number of U.S.-based retailers, Hibbett Sports is yet to announce temporary store closures in response to the pandemic. However, in light of the uncertainty related to the ongoing health crisis, the company did not provide financial outlook for fiscal 2021.
The retailer hopes to be able to report full-year guidance in May, when it reports its first-quarter results.
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