Hibbett Sports Beats Q3 EPS Estimates, Stock Soars

Hibbett Sports, Inc. HIBB announced results Friday for the third quarter ended November 1, 2014. Sales came in at $218.3 million, below estimates of $222.49 and above the $208.0 million reported in the year-ago period.

Comparable store sales for the third quarter increased 0.6 percent.

Net income was $16.9 million compared with $17.3 million for the prior year period.

Earnings per diluted share was $0.67, above estimates of $0.62 and the $0.66 reported in the year-ago period.

Gross profit was 36.3 percent of net sales for the 13-week period ended November 1, 2014, compared with 36.8 percent for the 13-week period ended November 2, 2013. The decline was mainly due to markdowns related to slow selling and aged inventory. Gross profit was also affected by store occupancy costs, as these expenses increased as a percentage of net sales due to higher store openings and the deleveraging effect of lower comparable store sales.

Jeff Rosenthal, President and Chief Executive Officer, stated, “We were pleased with our performance during the back-to-school season, with an acceleration of comparable store sales in August against high single-digit comps in the prior year. This improvement was offset by weaker comps in October. However, we have seen an improved sales trend in early November with the onset of colder weather in many of our markets.”

The company raised its guidance for the 52 weeks ending January 31, 2015, to earnings per diluted share in the range of $2.72 to $2.77. This compares to previous guidance of earnings per diluted share in the range of $2.63 to $2.73. The Company also reaffirms an expected increase in comparable store sales in the low single-digit range.

Hibbett Sports traded at $49.00 in the pre-market session, up 6.68 percent.