Hibbetts reiterates FY outlook despite drop in Q2 sales, profit

Hibbetts has reaffirmed its full-year outlook despite a 4.6 percent drop in revenue in the second quarter of the year.

The US sportswear retailer generated net sales of 374.9 million dollars in the three months to July 29, down from 392.8 million dollars the prior year. Comparable sales fell 7.3 percent.

That came as the company’s net profit more than halved to 10.9 million dollars from 24.7 million dollars.

CEO Mike Longo said the company was “pleased” with its Q2 performance despite a “challenging retail environment”.

He said Q2 sales were supported by “a strong start” to the back-to-school season and positive customer response to new product launches.

He continued: “In today’s inflationary environment, consumers have pulled back on discretionary spending. In response, we have continued to focus on offering the products that meet our customers’ more selective interests.

“Due to these efforts, our footwear sales, especially with our popular premium brands, have remained more consistent while our apparel business continues to reflect softer demand amid a heavy promotional environment.”

Looking ahead, the company warned the retail business climate remains “challenging” as consumer demand continues to be hit by inflation and higher interest rates.

Despite that, Hibbetts has reiterated its FY24 outlook. It expects revenue to be flat or up 2 percent, and diluted earnings per share (EPS) to be between 7.00 dollars and 7.75 dollars.

“Although we still face considerable headwinds, we believe we are well positioned for continued growth when market conditions improve,” Longo said.