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Hibbett (HIBB) Q1 Earnings Miss Estimates, Sales Fall Y/Y
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Hibbett, Inc. (HIBB - Free Report) posted soft first-quarter fiscal 2025 results, wherein earnings and sales missed the Zacks Consensus Estimate and decreased year over year. Results were hurt by a tough athletic footwear and apparel retail market.
Shares of this Zacks Rank #3 (Hold) company have gained 15.8% in the past three months compared with the industry's 11.6% growth.
Quarterly Highlights
Hibbett's adjusted earnings of $2.67 per share dipped 2.6% from the $2.74 reported in the year-ago quarter. The figure missed the Zacks Consensus Estimate of earnings of $2.68 per share.
Net sales dipped 1.8% year over year to $447.2 million. The figure lagged the consensus estimate of $449 million.
Comparable sales declined 5.8% year over year compared with our estimate of a 3.1% drop. Brick-and-mortar comparable sales experienced a 5.8% decrease on a year-over-year basis whereas e-commerce sales demonstrated an increase of 5.8%. E-commerce represented 13.4% of the overall net sales for the 13 weeks ended May 4, 2024, lower than 13.7% witnessed in the 13 weeks ended Apr 29, 2023.
The gross profit rose 4.3% year over year to $160.2 million, which surpassed our estimate of $154.3 million. Meanwhile, the gross margin expanded 210 basis points (bps) to 35.8% on increased average product margin, which was roughly 195 bps. Other favorable gross margin drivers included freight and shipping costs of about 50 bps, logistics expenses of 15 bps and a 10-bps improvement in shrink. However, this was offset by deleveraged store occupancy costs of roughly 60 bps.
Operating income was $41.3 million, down 10% year over year. The metric came below our estimate of $42.2 million. Meanwhile, the operating margin contracted 90 bps to 9.2%.
Store operating, selling and administrative (expenses, as a percentage of sales, increased 260 bps to 23.7% due to the inflationary impacts on wages, benefits, and goods and services along with lower year-over-year sales volume.
Other Financials
As of May 4, Hibbett had $28.7 million in cash and cash equivalents and $7.5 million of outstanding debt on its $160 million unsecured line of credit. In the fiscal first quarter, the company paid a quarterly dividend of 25 cents per outstanding common share that resulted in a cash outlay of $2.9 million.
Store Update
In the fiscal first quarter, the company opened six stores while closing six. As of May 4, it had 1,169 stores across 36 states.
Abercrombie, a leading apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). ANF delivered an earnings surprise of 180.9% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s financial-year sales indicates growth of 1.7% from the year-ago reported figure.
American Eagle, a casual apparel retailer, currently carries a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 22% in the last reported quarter.
The consensus estimate for American Eagle’s current financial-year sales implies growth of 3.4% from the year-ago reported figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an earnings surprise of 32.1% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 15.8% from the year-ago reported figure.
Image: Bigstock
Hibbett (HIBB) Q1 Earnings Miss Estimates, Sales Fall Y/Y
Hibbett, Inc. (HIBB - Free Report) posted soft first-quarter fiscal 2025 results, wherein earnings and sales missed the Zacks Consensus Estimate and decreased year over year. Results were hurt by a tough athletic footwear and apparel retail market.
Shares of this Zacks Rank #3 (Hold) company have gained 15.8% in the past three months compared with the industry's 11.6% growth.
Quarterly Highlights
Hibbett's adjusted earnings of $2.67 per share dipped 2.6% from the $2.74 reported in the year-ago quarter. The figure missed the Zacks Consensus Estimate of earnings of $2.68 per share.
Hibbett, Inc. Price, Consensus and EPS Surprise
Hibbett, Inc. price-consensus-eps-surprise-chart | Hibbett, Inc. Quote
Net sales dipped 1.8% year over year to $447.2 million. The figure lagged the consensus estimate of $449 million.
Comparable sales declined 5.8% year over year compared with our estimate of a 3.1% drop. Brick-and-mortar comparable sales experienced a 5.8% decrease on a year-over-year basis whereas e-commerce sales demonstrated an increase of 5.8%. E-commerce represented 13.4% of the overall net sales for the 13 weeks ended May 4, 2024, lower than 13.7% witnessed in the 13 weeks ended Apr 29, 2023.
The gross profit rose 4.3% year over year to $160.2 million, which surpassed our estimate of $154.3 million. Meanwhile, the gross margin expanded 210 basis points (bps) to 35.8% on increased average product margin, which was roughly 195 bps. Other favorable gross margin drivers included freight and shipping costs of about 50 bps, logistics expenses of 15 bps and a 10-bps improvement in shrink. However, this was offset by deleveraged store occupancy costs of roughly 60 bps.
Operating income was $41.3 million, down 10% year over year. The metric came below our estimate of $42.2 million. Meanwhile, the operating margin contracted 90 bps to 9.2%.
Store operating, selling and administrative (expenses, as a percentage of sales, increased 260 bps to 23.7% due to the inflationary impacts on wages, benefits, and goods and services along with lower year-over-year sales volume.
Other Financials
As of May 4, Hibbett had $28.7 million in cash and cash equivalents and $7.5 million of outstanding debt on its $160 million unsecured line of credit. In the fiscal first quarter, the company paid a quarterly dividend of 25 cents per outstanding common share that resulted in a cash outlay of $2.9 million.
Store Update
In the fiscal first quarter, the company opened six stores while closing six. As of May 4, it had 1,169 stores across 36 states.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie (ANF - Free Report) , American Eagle (AEO - Free Report) and Deckers (DECK - Free Report) .
Abercrombie, a leading apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). ANF delivered an earnings surprise of 180.9% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s financial-year sales indicates growth of 1.7% from the year-ago reported figure.
American Eagle, a casual apparel retailer, currently carries a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 22% in the last reported quarter.
The consensus estimate for American Eagle’s current financial-year sales implies growth of 3.4% from the year-ago reported figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an earnings surprise of 32.1% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 15.8% from the year-ago reported figure.