Hibbett Sports Posts In-Line Q2 Earnings, But Lowers Full-Year Forecast

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Hibbett Sports, Inc.
HIBB
reported in-line earnings for the second quarter, but the company's sales missed analysts' estimates. The company also lowered its forecast for the full year. The Birmingham, Alabama-based company reported quarterly net income of $7 million, or $0.28 per share, compared to $8.4 million, or $0.32 per share, in the year-ago quarter. Its revenue rose 2.8 percent year-over-year to $199.3 million from $193.9 million. However, analysts were expecting earnings of $0.28 per share on revenue of $208.78 million. The average estimate among 9 Estimize users was for earnings of $0.31 per share and revenue of $204.45 million. Comparable store sales slipped 1.1 percent for the quarter. Its gross profit for the second quarter narrowed to 32.7 percent of net sales, from 33.2 percent in the year-ago quarter. During the quarter, the company opened sixteen new stores, expanded four high-performing stores and closed three underperforming stores. The company ended the quarter with $85.3 million of available cash and cash equivalents. During the second quarter, Hibbett repurchased 601,455 shares of common stock for $27.9 million. Jeff Rosenthal, President and Chief Executive Officer, said, "Comparable store sales were under expectations for the quarter, and we experienced especially slow sales in the last two weeks of July. As stated in the recent business update, we anticipated the impact from the shift in tax-free weekends for 10 states during this period, but we experienced softness in other states as well. Sales trends in early August have improved, and we feel confident that we have plans in place to continue this improvement going forward." Hibbett projects full-year earnings of $2.80 to $2.90 per share, versus analysts' estimates of $2.87 per share. The company had earlier expected earnings of $2.95 to $3.04 per share. The company now expects full-year comparable store sales to be flat or rise in the low single-digit range, versus prior forecast of comparable store sales growth in the low single-digit range. Hibbett shares fell 2.96 percent to close at $39.06 yesterday.
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Posted In: EarningsNewsGuidanceprofit
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