Shares of athletic fashion retailer Hibbett, Inc. (NASDAQ:HIBB) are sliding lower today after the company announced lower-than-expected first-quarter numbers.
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Revenue rose 7.4% year-over-year to $455.5 million but missed expectations by about $2.8 million. EPS at $2.74 too lagged estimates by about $0.26. During the quarter, comparable sales rose 4.1% year-over-year with brick & mortar comparable sales rising 4.7%.
The company’s gross margin contracted by 330 basis points to 33.7% owing to lower average product margin stemming from increased promotional activity. Amid a challenging macroeconomic backdrop and consumers’ tightening purse strings, Hibbett has scaled back its fiscal 2024 outlook.
For the year, comparable sales are expected to drop in the low single digit versus the earlier estimate of low single-digit growth. Total sales growth is anticipated between flat to a 2% rise (earlier expectation was for a rise in the mid-single digit).
Diluted EPS for the year is now anticipated between $7 and $7.75 as compared to earlier estimates in the range of $9.50 and $10.
Overall, the Street has a $71.33 consensus price target on HIBB alongside a Moderate Buy consensus rating.
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