Hibbett Sports, Inc. (NASDAQ:HIBB) shares went into the stratosphere Friday on the release of first-quarter results.
A news release said net sales for the 13-week period ended May 4, 2019 increased 25.0% to $343.3 million, including $59.4 million for City Gear, compared with $274.7 million for the 13-week period ended May 5, 2018. Comparable store sales increased 5.1%.
Comparable store sales will not include sales from City Gear until the fourth quarter of Fiscal 2020. E-commerce sales represented 8.3% of total sales for the first quarter. Strength in footwear and sneaker-connected apparel and accessories continued to offset softer sales in licensed products and team sports.
Gross margin was 34.5% of net sales for the quarter, compared with 35.2% for the prior-year quarter. The 70-basis-point decrease was mainly due to increased freight costs from strong e-commerce sales and a $1.0 million expense incurred to amortize an inventory step-up value related to the City Gear acquisition.
Excluding non-recurring expenses, non-GAAP gross margin was 34.8% of net sales for the quarter.
Net income was $27.4 million, compared with net income of $21.5 million in the prior-year quarter. Excluding non-recurring costs, non-GAAP net income was $29.8 million.
Jeff Rosenthal, President and Chief Executive Officer, stated, "Our first quarter results reflect improved performance in both the store and e-commerce channels. We believe our improved web traffic and mobile app, along with continued traction in Buy Online, Pickup in Store, are translating to traffic in our stores and online."
Shares jumped $4.25, or 21.4%, to $24.07
