Sporting goods retailer Hibbett reported a 1.2% decline in comparable sales for the second quarter, while total sales decreased 0.6% to $337.7 million for the period ended July 31, 2023. This follows a 0.3% increase in comparable sales and a 3.2% increase in total sales in the first quarter. For the first half of the year, Hibbett’s comparable sales grew 0.4%, and total sales increased 1.9% to $718.4 million..
**Key Points:**.
– Comparable sales decreased 1.2% in the second quarter, driven by a decline in the footwear category..
– Total sales fell 0.6% to $337.7 million in the second quarter..
– For the first half of the year, comparable sales grew 0.4%, and total sales increased 1.9% to $718.4 million..
– Gross profit margin remained stable at 33.8% in the second quarter..
– Net income decreased 24.7% to $20.4 million in the second quarter, driven by a decline in sales and higher expenses..
– Hibbett ended the quarter with $128.9 million in cash and cash equivalents..
**Footwear Sales Decline:**.
Footwear sales declined in the second quarter, primarily due to lower demand for casual and athletic footwear. Hibbett attributed this decline to increased competition and a shift in consumer spending toward other categories..
**Apparel Sales Growth:**.
Apparel sales grew in the second quarter, driven by strength in the women’s and children’s categories. Hibbett cited increased demand for performance and athleisure apparel as contributing factors to the growth..
**Gross Margin Stable:**.
Gross profit margin remained stable at 33.8% in the second quarter, reflecting effective inventory management and cost controls..
**Expenses Rise:**.
Total operating expenses increased 2.9% in the second quarter, driven by higher labor, occupancy, and advertising costs. Hibbett noted that ongoing inflationary pressures contributed to the increase in expenses..
**Outlook:**.
For the full year, Hibbett expects comparable sales to remain flat to slightly negative, with total sales anticipated to be in the range of $1.45 billion to $1.47 billion. The company also expects gross profit margin to remain stable, while operating expenses are projected to increase slightly..
Overall, Hibbett’s second-quarter results were mixed, with comparable sales declining but overall sales increasing slightly. The company’s performance was impacted by the challenging retail environment, including increased competition and inflationary pressures. However, Hibbett’s focus on inventory management, cost controls, and the growth of its apparel business provides a foundation for future growth..
