Analysts Comment On Hibbett Sports Following Sales Update

The following firms have published reports on Hibbett Sports HIBB following the release of both its second quarter results and revised full-year guidance.

Raymond James - Market Perform, NA
"While we are supportive of Hibbett's long-term growth prospects, we remain concerned that EBIT margin and EPS will be under pressure through FY15 due to significant expenses/investments needed for a new corporate office and distribution center. In addition, Hibbett's same-store sales trends began to weaken in March of 2013, and this softness has continued through 2Q14."

BMO Capital - Market Perform, $52
"While July's sales results did show slight improvement, giving optimism for the back-to-school season, the progress was not enough to offset the malaise through the early part of the summer. We lowered our 2Q14 EPS estimate to $0.30 from $0.41. "

Deutsche Bank - Hold, $45
"Our concern had been that margins appear to have peaked and this will now be the 3rd quarter in a row of lower margins which now stand at 12.7% on a LTM basis, down from a peak of 14.2%. The lower margins therefore lead to a lower than expected growth rate, which we now calculate at 12% -13% on the EPS line over the next five years. "