Hibbett, Inc. HIBB shares are trading higher after the company reported Q3 sales of $431.92 million, beating the analyst consensus of $416.02 million. Net sales decreased 0.3% Y/Y.
Comparable sales decreased 2.7% Y/Y; brick-and-mortar comparable sales declined 5.4%; e-commerce sales increased 12.6% Y/Y.
Hibbett’s Q3 EPS of $2.05 beat the street view of $1.17.
Gross margin was 33.9% compared with 34.3% in the year-ago period. The approximate 40 basis point decline was driven primarily by a lower average product margin, approximately 130 basis points lower than the prior-year period. This decline was mainly due to higher promotional activity across both footwear and apparel.
In the quarter under review, the company opened ten net new stores, bringing the store base to 1,158 in 36 states.
As of October 28, 2023, the company had $29.6 million of cash and equivalents in the consolidated balance sheet and $96.9 million of debt outstanding on its $160.0 million unsecured line of credit.
Fiscal 2024 Outlook: “As we enter the fourth quarter and our busy holiday selling season, we believe we are well positioned for a strong finish to Fiscal 2024,” said Mike Longo, President and Chief Executive Officer.
Hibbett continues to see FY24 total sales to be flat to up ~2.0%.
The company raised the EPS outlook from $7.00-$7.75 to $8.00-$8.30 (estimate: $7.27).
“We expect to benefit from additional new product launches that will continue to attract and retain customers and extend our market reach,” Longo added.
Price Action: HIBB shares are trading higher by 16.56% to $62.50 premarket on the last check Tuesday.
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