Why Hibbett Shares Are Sliding Today - Hibbett (NASDAQ:HIBB)

Hibbett Inc HIBB reported a first-quarter FY22 revenue decline of 16.3% year-over-year to $424.1 million, missing the consensus of $427.66 million.
Comparable sales decreased 18.9% versus the prior year but increased by 22.9% in relation to the 1Q20.
Brick and mortar comparable sales declined 22.0%, while e-commerce sales increased 4.1%
The gross margin contracted 440 basis points Y/Y to 37%. The operating margin compressed from 21.7% to 12%, and operating income for the quarter fell 53.9% to $50.7 million.
EPS of $2.89 missed the analyst consensus of $3.08.
Hibbett held $23.2 million in cash and equivalents as of April 30, 2022.
Store count at the end of Q1 was 1,105 versus 1,071 last year.
Inventory at Q1 end was $314.9 million, a 72.6% increase over last year.
"As we've previously discussed, our customers spending habits were affected by lower discretionary income due to the absence of stimulus payments received in the first quarter of last year," said CEO Mike Longo.
Outlook: As announced earlier, Hibbett expects FY23 sales to be relatively flat in dollars, implying comparable sales in the negative low-single digits.
It sees FY23 EPS of $9.75 - $10.50 versus the consensus of $9.74.
HIBB said it expects to face several business and economic challenges in FY23.
Price Action: HIBB shares are trading lower by 7.80% at $47.12 in premarket on the last check Friday.