Hibbett Sports, Inc. on Thursday announced a decline in its second-quarter sales, as same-store sales fell by a mid-single-digit percentage compared to the prior year period.
The athletic-inspired fashion and footwear retailer, which operates approximately 1,114 stores in 34 states, reported net sales of $269.9 million for the quarter ended July 30, 2023, a decrease of 3.7% from $280.7 million reported during the same quarter of the previous year.
The company attributed the sales decline to a decrease in comparable store sales, which fell by a mid-single-digit percentage, and a reduction in the number of stores in operation. Hibbett closed 33 stores during the quarter and 69 stores over the past year.
Despite the Q2 sales decline, Hibbett’s first-half sales increased slightly, rising 2.1% to $596.3 million, compared to $583.6 million reported during the same period of the previous year.
The company’s gross profit for the second quarter decreased 12.7% to $90.8 million, compared to $103.7 million reported during the same quarter of the previous year. The decline in gross profit was primarily due to a decrease in merchandise margins, which was partially offset by an increase in net sales.
Hibbett’s net income for the second quarter decreased 36.5% to $22.1 million, compared to $34.9 million reported during the same quarter of the previous year. The company’s diluted earnings per share decreased 34.6% to $1.23, compared to $1.88 reported during the same quarter of the previous year.
Looking ahead, Hibbett said it expects third-quarter sales to be relatively flat compared to the prior year period. The company also expects to close an additional 25 to 30 stores during the second half of the year.
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