Hibbett, Inc. is scheduled to report third-quarter fiscal 2022 numbers on Dec 3, before the opening bell. The retailer of athletic-inspired fashion products is likely to have witnessed revenue growth in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal third-quarter earnings of $1.45 per share suggests flat earnings compared with the year-ago quarter's reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $356.2 million, indicating growth of 7.5% from the figure reported in the year-ago quarter.

The company's bottom line surpassed the Zacks Consensus Estimate by 130.7% in the last reported quarter. Hibbett has a trailing four-quarter earnings surprise of 124.6%, on average.

Hibbett, Inc. Price and EPS Surprise

 

Hibbett, Inc. price-eps-surprise | Hibbett, Inc. Quote

Key Factors to Note

Hibbett has been gaining from continued positive momentum, driven by an enhanced assortment of highly coveted merchandise and improved omni-channel capabilities. Increased focus on stores and online as well as strong vendor relationships has been contributing to growth in Hibbett and City Gear brands. Sturdy demand in lifestyle and performance products is expected to have aided fiscal third-quarter sales.

On the last reported quarter's earnings call, management noted that Hibbett has been benefiting from customer acquisitions, led by pent-up customer demand, government stimulus payments, continued online momentum, strong vendor relationships, gains from store refresh program and improved supply chain.

The company has been witnessing a solid online show on the back of 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, same-day delivery, and mobile app services.

HIBB has been on track to expand its customer base by connecting with more customers through e-commerce and selective store expansion. On the store-front, management's store-expansion initiatives are expected to have been upsides. Gains from these endeavors are expected to get reflected in the to-be-reported quarter's results.

However, HIBB has been witnessing higher SG&A expenses for quite some time now. Increased store costs as stores were operating at regular hours with full staffs, and investments to attract customers and improve back-office processes have been causing the deleverage in SG&A expenses.

On its last reported quarter's earnings call, the company expected SG&A expenses, as a percentage of sales, to increase in the second half of fiscal 2022 from the first half. This indicated continued SG&A expense deleverage for the fiscal third quarter.

Hibbett is expected to have witnessed supply-chain disruptions in the fiscal third quarter, leading to higher freight expenses. On its last reported quarter's earnings call, the company predicted elevated shipping costs and deleverage from store occupancy costs. As a result, management anticipates a lower gross margin in the second half of fiscal 2022 than the first half, which indicates a soft gross margin for the third quarter.

What the Zacks Model Unveils

Our proven model doesn't conclusively predict an earnings beat for Hibbett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Hibbett has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With Favorable Combination

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

The Kroger Co. (KR Quick QuoteKR - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for KR's quarterly revenues is pegged at $31.2 billion, which suggests growth of 4.8% from the prior-year quarter.

You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kroger's quarterly earnings moved up by a penny in the last 30 days to 66 cents per share, suggesting a 7% decline from the year-ago reported number. However, KR has delivered an earnings beat of 18%, on average, in the trailing four quarters.

Costco Wholesale (COST Quick QuoteCOST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #3. COST is anticipated to register top and bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings moved up 2.8% in the last 30 days to $2.59 per share, suggesting growth of 13.1% from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.6 billion, indicating an improvement of 14.8% from that reported in the prior-year quarter. COST has delivered an earnings beat of 7.7%, on average, in the trailing four quarters.

Ulta Beauty (ULTA Quick QuoteULTA - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank #3. ULTA is likely to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.9 billion, which suggests growth of 22.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Ulta Beauty's quarterly earnings has moved up by a penny in the last 30 days at $2.47 per share, suggesting growth of 50.6% from the year-ago quarter. ULTA has delivered an earnings beat of 63.9%, on average, in the trailing four quarters.