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Hibbett Sports Inc. posted third-quarter fiscal 2021 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Further, both top and bottom lines improved year over year. Results gained from improved traffic in stores and the website owing to pent-up customer demand. Moreover, management envisions solid momentum to continue through the rest of fiscal 2021.
Q3 Highlights
Hibbett’s adjusted earnings came in at $1.45 per share, surging more than four-folds from 32 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of 41 cents.
Net sales increased 20.3% year over year to $331.4 million in the quarter under review. The uptick can be attributed to improved traffic in stores. Also, retained momentum in online sales and new customer acquisitions contributed to quarterly growth. E-commerce sales accounted for 13.2% of total sales in the fiscal third quarter. Moreover, digital sales surged 50.7%.
Comparable store sales (comps) increased 21.2% in the quarter, driven by a rise in new customers, a shift in the timing of the back-to-school season and solid performance in apparel, accessories and footwear.
Adjusted gross profit increased 41.4% to $126.3 million in the reported quarter. Moreover, adjusted gross margin expanded 570 basis points (bps) to 38.1%.
Adjusted operating income was $32.7 million, reflecting a significant improvement from $6.9 million in the prior-year quarter. Moreover, adjusted operating margin rose 740 bps to 9.9% in the quarter under review. Meanwhile, adjusted store operating, selling and administrative (SG&A) expenses contracted 120 bps to 26%, as a percentage of sales, driven by higher sales.
Hibbett Sports, Inc. Price, Consensus and EPS Surprise
Hibbett ended the quarter with $177.7 million in cash and cash equivalents and $75 million available under its credit facilities. Total stockholders’ investment, as of Oct 31, was $373.2 million.
Further, Hibbett did not repurchase any shares and has $143.3 million remaining under its authorization for share repurchase through Jan 29, 2022. Capital expenditures came in at $8.3 million during the reported quarter.
Store Update
In third-quarter fiscal 2021, the company did not open any store but rebranded two Hibbett stores to City Gear. However, it shut five underperforming outlets. Hence, it ended the quarter with 1,074 stores across 35 states.
Looking Ahead
Driven by pent-up customer demand, gains from new customers, rising online sales, robust vendor relationships and strength in athletic footwear, apparel and accessories both in-store and online, management has issued GAAP guidance for fourth-quarter fiscal 2021. Also, it doesn’t foresee any material difference between GAAP and non-GAPP figures.
The company expects comps growth of high-single to low-double digits. Moreover, gross margin is anticipated to expand nearly 380-400 basis points, while SG&A expenses are likely to leverage roughly 40-60 bps. The bottom line is expected to be $1-$1.1 per share.
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Target Corporation (TGT - Free Report) has an expected long-term earnings growth rate of 7.2% and a Zacks Rank #2.
The Kroger Co. (KR - Free Report) has an impressive long-term earnings growth rate of 6.2% and a Zacks Rank #2.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Hibbett's (HIBB) Q3 Earnings Beat Estimates, Sales Rise Y/Y
Hibbett Sports Inc. posted third-quarter fiscal 2021 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Further, both top and bottom lines improved year over year. Results gained from improved traffic in stores and the website owing to pent-up customer demand. Moreover, management envisions solid momentum to continue through the rest of fiscal 2021.
Q3 Highlights
Hibbett’s adjusted earnings came in at $1.45 per share, surging more than four-folds from 32 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of 41 cents.
Net sales increased 20.3% year over year to $331.4 million in the quarter under review. The uptick can be attributed to improved traffic in stores. Also, retained momentum in online sales and new customer acquisitions contributed to quarterly growth. E-commerce sales accounted for 13.2% of total sales in the fiscal third quarter. Moreover, digital sales surged 50.7%.
Comparable store sales (comps) increased 21.2% in the quarter, driven by a rise in new customers, a shift in the timing of the back-to-school season and solid performance in apparel, accessories and footwear.
Adjusted gross profit increased 41.4% to $126.3 million in the reported quarter. Moreover, adjusted gross margin expanded 570 basis points (bps) to 38.1%.
Adjusted operating income was $32.7 million, reflecting a significant improvement from $6.9 million in the prior-year quarter. Moreover, adjusted operating margin rose 740 bps to 9.9% in the quarter under review. Meanwhile, adjusted store operating, selling and administrative (SG&A) expenses contracted 120 bps to 26%, as a percentage of sales, driven by higher sales.
Hibbett Sports, Inc. Price, Consensus and EPS Surprise
Hibbett Sports, Inc. price-consensus-eps-surprise-chart | Hibbett Sports, Inc. Quote
Other Financials
Hibbett ended the quarter with $177.7 million in cash and cash equivalents and $75 million available under its credit facilities. Total stockholders’ investment, as of Oct 31, was $373.2 million.
Further, Hibbett did not repurchase any shares and has $143.3 million remaining under its authorization for share repurchase through Jan 29, 2022. Capital expenditures came in at $8.3 million during the reported quarter.
Store Update
In third-quarter fiscal 2021, the company did not open any store but rebranded two Hibbett stores to City Gear. However, it shut five underperforming outlets. Hence, it ended the quarter with 1,074 stores across 35 states.
Looking Ahead
Driven by pent-up customer demand, gains from new customers, rising online sales, robust vendor relationships and strength in athletic footwear, apparel and accessories both in-store and online, management has issued GAAP guidance for fourth-quarter fiscal 2021. Also, it doesn’t foresee any material difference between GAAP and non-GAPP figures.
The company expects comps growth of high-single to low-double digits. Moreover, gross margin is anticipated to expand nearly 380-400 basis points, while SG&A expenses are likely to leverage roughly 40-60 bps. The bottom line is expected to be $1-$1.1 per share.
Price Performance
In the past six months, this Zacks Rank #1 (Strong Buy) stock has soared 63.7%, outperforming the industry’s 1.8% growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks to Watch in the Retail Space
The TJX Companies (TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #2.
Target Corporation (TGT - Free Report) has an expected long-term earnings growth rate of 7.2% and a Zacks Rank #2.
The Kroger Co. (KR - Free Report) has an impressive long-term earnings growth rate of 6.2% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>