Hibbett reports another strong quarter; raises guidance

Marianne Wilson
Marianne Wilson profile picture
Hibbett storefront
Hibbett operates stores under its namesake and City Gear banners.

Hibbett, parent company of Hibbett Sports and City Gear, maintained its momentum in the third quarter as its expanded fashion focus continued to resonate with customers.

The athletic-inspired  apparel retailer, which changed its corporate name from Hibbett Sports to Hibbett in June,  reported net income of $25.2 million, or $1.68 a share, for the quarter ended Oct. 30, compared with $25.3 million, or $1.47 a share, in the year-ago period.  Analysts had forecast earnings per share of $1.62.

Total net sales rose 15.2% to $381.7 million from $331.4 million a year ago. Analysts had expected sales of $360 million. E-commerce represented 14.0% of total sales.

Comparable sales rose 13% compared to a year ago. On a two-year basis, comparable sales increased 37.4% versus the 13-week period ended November 2, 2019. Brick and mortar comp sales increased 31.6% and e-commerce sales grew 84.2% during this two-year period.

The company said its increased market share, improved customer engagement and availability of in-demand product were the primary drivers of its sales growth.

"Our focused strategy of providing a compelling assortment of highly coveted merchandise coupled with superior customer service and a best-in-class omnichannel platform led to increased traffic, a higher average ticket, and a greater number of items purchased per transaction,” said Mike Longo, Hibbett, which operates 1,086 stores in 35 states.Despite ongoing challenges in the supply chain, our inventory position improved significantly during the third quarter. We are very well-positioned for the holiday selling season.”

[Read More: Hibbett Sports expands footprint of its two banners]

The company raised its guidance and said it now expects earnings per share of $1.85 to $2.05 for the fourth quarter. It expects earnings per share for fiscal 2022 of $11.70 to $11.90, compared with a FactSet consensus of $11.41. Same-store sales are expected to rise in the high single-digit for the fourth quarter and to be up in positive high teens for the year.