Hibbett Slumps in Q1

Hibbett Sports, Inc. (NASDAQ: HIBB) reported weaker-than-expected results for its first quarter.

The company based in Birmingham, Alabama reported Friday that net sales for the 13-week period ended May 5, 2018 decreased 0.4% to $274.7 million compared with $275.7 million for the 13-week period ended April 29, 2017.

Comparable store sales decreased 0.3%. E-commerce sales represented 7.0% of total sales for the first quarter.

Gross margin was 35.2% of net sales for the past quarter, compared with 35.6% for the prior-year quarter. The decline was mainly due to increased sales of clearance merchandise and freight associated with e-commerce sales.

At the end of the first quarter of Fiscal 2019, aged inventory levels were significantly improved compared with the same period last year.

Store operating, selling and administrative expenses were 22.5% of net sales for the quarter just ended, compared with 21.2% of net sales for the prior-year quarter. The increase was mainly due to reinvestment of tax reform savings to benefit the Company’s team members, additional marketing initiatives to drive e-commerce sales and investments made to launch our new mobile app.

Net income was $21.5 million, compared with net income of $20.9 million for the prior-year quarter. Earnings per diluted share were $1.12, compared with earnings per diluted share of $0.97 for the prior-year quarter.

Jeff Rosenthal, President and Chief Executive Officer, stated, "Branded apparel was especially strong during the quarter with comparable store sales in the high single-digit range, while footwear and cleats were positive as well."

Shares were down $3.43, or 11.8%, to $25.52 Friday