Hibbett, Inc. posted unfavorable results in the company’s latest earnings report.
The athletic apparel retailer generated $392.8 million in net sales in fiscal Q2 2023 — a 6.3% decline from $419.3 million for the same period last year. The lackluster sales were attributed to inflationary pressures and supply chain constraints due to increased freight costs.
- Comparable sales fell 9.2% during the quarter compared to Q2 2022.
- In Q2 2023, brick-and-mortar comparable sales declined 11.9% year-over-year.
- E-commerce sales — which made up 15% of total sales — increased 8.3% in fiscal Q2.
Hibbett, which projects better results in fiscal Q3 due to back-to-school sales, failed to meet Wall Street earnings estimates of $2.26 in Q2, with a profit of $1.86 per share.
The company reported a net income of $24.7 million during the quarter, down from a net income of $46.7 million in Q2 2022 — when shares earned $2.86 apiece.
Hibbett improved its inventory position during the second quarter in anticipation of back-to- school sales. The Alabama-based company reported an inventory of $366.2 million as of July 30, up 68.9% compared to Q2 2021 and a 66.5% increase from the first quarter of FY2023.
Hibbett — which operates 1,117 Hibbett and City Gear stores across 36 states — has raised its full-year outlook despite the underwhelming Q2. The company expects net sales to increase in “the low-single-digit range” compared to FY2022.