Hibbett (NASDAQ:HIBB) saw its stock shrink in price early Tuesday, after it missed top and bottom line estimates for its latest quarter. The company said it was hit by higher expenses that cut into its profit margins, although the company did reaffirm its full-year forecast.
Net sales for the quarter increased 13.5% to $433.2 million compared with $381.7 million for the prior-year quarter. Comparable sales increased 9.9% versus the prior year and increased by 51.7% compared to the 13-weeks ended November 2, 2019 (“Fiscal 2020”), the most relevant comparable period prior to the COVID-19 pandemic.
Brick and mortar comparable sales were up 7.9% while e-commerce sales increased 22.0% on a year-over-year basis. In relation to the 13-weeks ended November 2, 2019, brick and mortar comparable sales increased 42.5% and e-commerce sales grew 124.7%.
CEO Mike Longo said, “Our third-quarter performance was highlighted by solid top-line growth, with comparable sales up nearly 10% over the prior year period including an impressive e-commerce increase of 22.0%. These results reflect a strong back-to-school season, which fell more in the third quarter this year than the second quarter as consumers waited closer to the start of school to make purchases.”
Net income for the 13 weeks ended October 29, 2022, was $25.6 million, or $1.94 per diluted share, compared with net income of $25.2 million, or $1.68 per diluted share, for the 13-weeks ended October 30, 2021.
HIBB shares dropped $6.11, or 9%, to $61.49.