Hibbett third quarter lifts on strong back-to-school season

By

Benjamin Fitzgerald

Published
Nov 30, 2022

Hibbett Inc. announced on Tuesday that net sales for the third quarter increased 13.5% to $433.2 million, with comparable sales up nearly 10%, including an e e-commerce surge of 22% during the three months.

The Birmingham, Alabama-based company said comparable sales increased 9.9% versus the prior year. Quarterly brick-and-mortar comparable sales were up 7.9% while e-commerce sales increased 22% on a year-over-year basis.

Net income for the three months ending October 29 grew to $25.6 million, compared to $25.2 million in the prior-year period.

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Likewise, net sales for the 39-weeks ended October 29 decreased 4.4% to $1.25 billion, compared with $1.31 billion. Year-to-date comparable sales decreased 7.4%. Brick-and-mortar comparable sales dove 10.2% and e-commerce sales increased 11.2%, said the sporting retail company.

"These results reflect a strong back-to-school season, which fell more in the third quarter this year than the second quarter as consumers waited closer to the start of school to make purchases," said Mike Longo, president and chief executive officer.

"We experienced strong demand for our popular lines of footwear, reflecting continued consumer loyalty to our key brands while our apparel sales for the quarter were pressured by a more competitive pricing environment. Additionally, margins were affected by continued high freight and fuel costs and wage inflation.”

Looking ahead, the owner of Hibbett and City Gear retail chains said it is reiterating its fiscal 2023 guidance announced in August.

Total net sales for the full year are expected to increase in the low-single digit range. This implies comparable sales are expected to be in the range of flat to positive low-single digits for the full year.

Full year brick-and-mortar comparable sales are expected to be in the flat to positive low-single digit range, while full year e-commerce revenue growth is anticipated to be in the positive high-single digit range.