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Athletic-inspired fashion retailer Hibbert Sports reported much stronger earnings Friday. EPS jumped 44% and revenue rose 25%. $HIBB was uo 20% premarket. In contrast leading athletic retailer Foot Looker $FL was off 20% after also reporting.

Hibbert Sports

Hibbett Sports, Inc. NASDAQ: HIBB· Reported Earnings Before Open Friday

$1.61 Beat $1.29 EPS And $343.3M Beat $327 Million forecast in revenue

Earnings

Hibbett Sports earnings per share jumped 44% to $1.61 a share as revenue climbed 25% to $343.3 million. Top- and bottom-line growth accelerated for a second straight quarter.

Same-store sales leapt 5.1%. Analysts had seen earnings per share of $1.29, with revenue at $327 million. Same-store sales had been expected to rise 1.2%.

During the previous fourth-quarter, the company posted a 32% plunge in earnings due to higher costs and expenses.Net sales increased by 14.7% as comparable store sales inched up 3.8%. E-commerce sales represented 10.6% of total sales for the fourth quarter.

Hibbett Sports, Inc. NASDAQ: HIBB

Market Reaction Pre Market $23.68 +3.86 (+19.48%)

Highlights

For the quarter, Hibbett opened three new stores, rebranded two Hibbett stores to City Gear stores, expanded one high-performing store, and closed 24 underperforming stores bringing the store base to 1,144 in 35 states as of May 4, 2019.

  • Net sales soared by 25% to $343.4 million as comparable store sales increased by 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 & accessories continued to offset softer sales in licensed products and team sports.

Hibbett Sports Q1 2020 Comp Sales Trend

Outlook

Hibbett Sports now sees full-year EPS of $2-$2.15 vs. its prior range of $1.80-$2.  Comparable store sales growth are now anticipated to be in the range of 0.5% to 2% compared to the previous forecast range of down 1% to up 1%.

Capital expenditures are still projected to be about $18 million to $22 million and share repurchase is still predicted to be in the range of $10 million to $15 million.

The company said its traffic in stores and online was translated from the improved web traffic and mobile app, along with continued traction in Buy Online, Pickup in Store.

Hibbett is moving forward with its plan to close most unproductive stores. This included closing about 95 Hibbett stores in fiscal 2020, which is expected to result in non-recurring impairment and store closure charges in the range of $0.15 to $0.15 per share in fiscal 2020.

About Hibbert

Hibbett, headquartered in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with more than 1,100 stores under the Hibbett Sports and City Gear banners, primarily located in small and mid-sized communities. Founded in 1945, Hibbett has a rich history of convenient locations, personalized customer service and access to coveted footwear, apparel and equipment from top brands like Nike, Jordan, Adidas, and Under Armour.

Consumers can browse styles, find new releases, shop looks and make purchases online or in their nearest store by visiting www.hibbett.com or www.citygear.com.

Source: Hibbett

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