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Hibbett (HIBB) Rises 52% in 3 Months on Solid Online Show

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Shares of Hibbett Sports, Inc. have not only outperformed the industry but also the Retail-Wholesale sector in the past three months. This Zacks Rank #3 (Hold) company gained 52.3% compared with the industry’s and the sector’s growth of 13.2% and 2.3%, respectively. Such bullish run on the bourses can be mainly attributable to improved traffic in stores and its website, stemming from rising customer demand.

The company has been witnessing strong momentum in online sales and customer acquisitions. Also, solid performance in apparel, accessories and footwear remain upsides. Alongside these, a shift in the timing of the back-to-school season led to comparable store sales (comps) growth of 21.2% and a year-over-year sales rise of 20.3% in third-quarter fiscal 2021.

Further, it is leveraging its omni-channel capabilities such as home delivery, buy online and pick-up in store, reserve online and pick-up in store, buy online ship to store facility, same-day delivery and mobile app services to fulfill online orders and serve customers. The company witnessed a strong online show amid the coronavirus pandemic, which contributed to top-line growth in third-quarter fiscal 2021.

Notably, online sales advanced 50.7% with year-over-year comps growth of 118.2% in the fiscal third quarter. Apart from these, Hibbett is progressing well with its loyalty program in order to enhance its omni-channel initiatives.

Management expects the top-line momentum to continue throughout the rest of fiscal 2021. For fourth-quarter fiscal 2021, it doesn’t foresee any material difference between GAAP and non-GAPP figures. The bottom line is expected to be $1-$1.1 per share, whose midpoint of $1.05 reflects a sharp improvement from 51 cents reported in the last-year quarter. Moreover, the company expects comps growth of high-single to low-double digits. Also, gross margin is anticipated to expand 380-400 basis points.

All said, we believe that a solid top line, driven by strength in core categories, along with a robust e-commerce business will help Hibbett sustain momentum. Moreover, a VGM Score of A and a long-term earnings growth rate of 17% reflects its inherent strength. Topping it, the Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $5.79 per share, reflecting an increase of 0.5% in the past 60 days.

 

 

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