Hibbett Sports Inc. (NASDAQ: HIBB) took hefty losses Tuesday morning, after the company reported weaker-than-expected results for its third quarter and lowered its FY19 adjusted EPS guidance.
The Birmingham, Ala.-based chain announced that comparable sales for the 13-week period ended November 3, 2018 increased 0.1%. E-commerce sales increased 62.2%, and represented 8.8% of total net sales for the third quarter.
Total net sales decreased $20.9 million (8.8%) to $216.9 million compared with $237.8 million for the 13-week period ended October 28, 2017.
The year-over-year decrease in net sales included a decrease of approximately $17.3 million due to the week shift resulting from the 53rd week last year, and a decrease of $2.4 million due to the sale of the Company’s Team Division in December 2017.
Gross margin was 32.5% of net sales for the quarter compared with 32.0% for the prior-year quarter. The increase was mainly due to fewer clearance markdowns. Logistics and store occupancy expenses declined 3.3% for the third quarter, but increased as a percentage of net sales due to the week shift.
Net income for the quarter was $1.5 million compared with net income of $7.6 million for the prior-year quarter.
Earnings per diluted share amounted to $0.08, compared with $0.37 for the prior-year quarter.
Said CEO Jeff Rosenthal, "We continue to see good momentum in our branded apparel business, which helped offset softness in our licensed, equipment, and accessories business in the quarter. Footwear comparable sales were relatively flat, although we see potential upside in the fourth quarter as the depth of our premium products continues to improve."
HIBB shares shambled lower $1.17, or 6.5%, to $16.79
