UPDATE: Stifel Downgrades Hibbett Sports on Ramping Retail/Online Competition

In a report published Monday, Stifel analyst David Schick downgraded the rating on Hibbett Sports HIBB from Hold to Sell. In the report, Stifel noted, “We are downgrading HIBB from Hold to Sell. This is not about what HIBB has done and is doing for its customers, we appreciate the fact HIBB continues to serve its customers well. HIBB has been a simple growth story for years as the company has grown stores in small, less-competitive markets in the South, Southwest, Midwest, and Mid-Atlantic. We see the story changing. We expect increasing competition (both new stores in HIBB markets and overall online). We expect over the next few years this is more likely to pressure HIBB growth and operating margin and so therefore EPS and multiple. HIBB sales growth has averaged 11.3% in FY10-12, yet we see a 7.0% average in FY13-15.” Hibbett Sports closed on Friday at $56.79.