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Factors to Decide the Fate of Hibbett (HIBB) in Q2 Earnings
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Hibbett, Inc. is likely to witness a year-over-year decline in the top and bottom lines when it reports second-quarter fiscal 2023 earnings on Aug 25. The Zacks Consensus Estimate for revenues is pegged at $399.4 million, suggesting a decline of 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at $2.31 per share, indicating a decline of 19.2% from the figure reported in the prior-year period.
Hibbett, which engages in the retail of athletic-inspired fashion products, has a trailing four-quarter earnings surprise of 31.6%, on average. HIBB’s earnings missed the Zacks Consensus Estimate by 12.2% in the last reported quarter.
Hibbett’s second-quarter fiscal 2023 results are expected to reflect the adverse impacts of the ongoing supply-chain disruption, lack of stimulus and unemployment benefits, inflation, and higher wages. Adverse changes in customers' spending habits, stemming from lower discretionary income due to the absence of stimulus payments, have been weighing on the company’s top line.
On the last reported quarter’s earnings call, management anticipated comps to decline in the low teens in the first half of fiscal 2023, indicating continued soft performance in the fiscal second quarter. The company expected supply-chain disruptions to continue in the fiscal second quarter, leading to higher freight expenses. It also predicted elevated shipping costs and deleverage from store occupancy costs.
Elevated store occupancy, rising average product costs, and higher freight and transportation costs, have been hurting the company’s gross margin. Continued impacts from these factors are likely to have marred the gross margin in the fiscal second quarter. Higher store operating, selling and administrative (SG&A) expenses, as a percentage of sales, due to lower sales and rising costs associated with advertising, professional services and increased supplies to support a larger store base and higher e-commerce volume are expected to have weighed on the operating margin in the to-be-reported quarter.
However, Hibbett has been benefiting from increased investments in customer acquisition and retentions, store growth, improved store productivity, and better omni-channel capabilities. Also, strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is also likely to have gained from the progress on the e-commerce front and the expansion of the loyalty program.
The company remains focused on increasing the customer base by connecting with more customers through e-commerce and selective store expansion. Further, it has been leveraging its omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hibbett this time. 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, which is not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Hibbett currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s earnings has moved up 0.4% to $4.86 per share in the past seven days. The consensus estimate indicates 6.6% growth from $4.56 reported in the year-ago quarter. ULTA delivered an earnings beat of 49.8%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved down by a penny in the past seven days to $2.91 per share. The consensus estimate suggests 8.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $9.4 billion, which suggests growth of 8.4% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Advance Auto Parts (AAP - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its second-quarter 2022 earnings has moved south by 0.5% to $3.75 per share in the past 30 days. However, the consensus mark suggests 10.3% growth from the year-ago quarter’s reported number.
Advance Auto Parts’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.75 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. AAP delivered an earnings beat of 9.2%, on average, in the trailing four quarters.
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Factors to Decide the Fate of Hibbett (HIBB) in Q2 Earnings
Hibbett, Inc. is likely to witness a year-over-year decline in the top and bottom lines when it reports second-quarter fiscal 2023 earnings on Aug 25. The Zacks Consensus Estimate for revenues is pegged at $399.4 million, suggesting a decline of 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at $2.31 per share, indicating a decline of 19.2% from the figure reported in the prior-year period.
Hibbett, which engages in the retail of athletic-inspired fashion products, has a trailing four-quarter earnings surprise of 31.6%, on average. HIBB’s earnings missed the Zacks Consensus Estimate by 12.2% in the last reported quarter.
Hibbett, Inc. Price and EPS Surprise
Hibbett, Inc. price-eps-surprise | Hibbett, Inc. Quote
Key Factors to Consider
Hibbett’s second-quarter fiscal 2023 results are expected to reflect the adverse impacts of the ongoing supply-chain disruption, lack of stimulus and unemployment benefits, inflation, and higher wages. Adverse changes in customers' spending habits, stemming from lower discretionary income due to the absence of stimulus payments, have been weighing on the company’s top line.
On the last reported quarter’s earnings call, management anticipated comps to decline in the low teens in the first half of fiscal 2023, indicating continued soft performance in the fiscal second quarter. The company expected supply-chain disruptions to continue in the fiscal second quarter, leading to higher freight expenses. It also predicted elevated shipping costs and deleverage from store occupancy costs.
Elevated store occupancy, rising average product costs, and higher freight and transportation costs, have been hurting the company’s gross margin. Continued impacts from these factors are likely to have marred the gross margin in the fiscal second quarter. Higher store operating, selling and administrative (SG&A) expenses, as a percentage of sales, due to lower sales and rising costs associated with advertising, professional services and increased supplies to support a larger store base and higher e-commerce volume are expected to have weighed on the operating margin in the to-be-reported quarter.
However, Hibbett has been benefiting from increased investments in customer acquisition and retentions, store growth, improved store productivity, and better omni-channel capabilities. Also, strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is also likely to have gained from the progress on the e-commerce front and the expansion of the loyalty program.
The company remains focused on increasing the customer base by connecting with more customers through e-commerce and selective store expansion. Further, it has been leveraging its omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hibbett this time. 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, which is not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Hibbett currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ulta Beauty’s earnings has moved up 0.4% to $4.86 per share in the past seven days. The consensus estimate indicates 6.6% growth from $4.56 reported in the year-ago quarter. ULTA delivered an earnings beat of 49.8%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved down by a penny in the past seven days to $2.91 per share. The consensus estimate suggests 8.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $9.4 billion, which suggests growth of 8.4% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Advance Auto Parts (AAP - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its second-quarter 2022 earnings has moved south by 0.5% to $3.75 per share in the past 30 days. However, the consensus mark suggests 10.3% growth from the year-ago quarter’s reported number.
Advance Auto Parts’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.75 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. AAP delivered an earnings beat of 9.2%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.