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Hibbett (HIBB) Looks Bullish: Stock to Gain From Strategies
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Hibbett Sports Inc. (HIBB - Free Report) is putting up a good show driven by its sturdy growth initiatives, improvement in the footwear and apparel businesses, strong ecommerce sales and extensive store expansion. These endeavors have backed the company’s robust surprise trend and an excellent stock momentum in the recent months. Evidently, Hibbett’s shares surged 80.5% in the past three months, outperforming industry’s growth of 17.5%.
Let’s analyze the factors driving this Zacks Rank #1 (Strong Buy) stock’s performance.
Solid Surprise Trend & Outlook
Hibbett Sports has to its credit a positive surprise history as it has topped earnings estimates in the trailing three quarters. The company has recorded an average trailing fourth-quarter beat of 25.6%. Further, it reported positive sales surprise in the last reported quarter after two consecutive quarters of miss. The company is gaining from improvement in the footwear and apparel businesses as well as strong e-commerce sales.
Moreover, Hibbett remains well positioned to gain from growth of omni-channel capabilities, improved Rewards members, and small market strategy and inventory management initiatives.
Furthermore, Hibbett’s robust outlook for fiscal 2018 drives optimism. The company envisions earnings for fiscal 2018 in the range of $1.42-$1.50 per share. The Zacks Consensus Estimate for the fiscal is pegged at $1.50 per share, which is at the higher-end of the company’s guidance.
Growth Strategies Show Potential
Hibbett remains encouraged by the progress in internal initiatives amid challenging external environment. These initiatives include the launch of its new e-commerce site and the re-launch of its loyalty program. Notably, e-commerce has contributed 5% to net sales in fiscal third-quarter benefiting from the company’s early marketing plan and strong conversion from online traffic.
Additionally, its ongoing marketing initiatives boosted sales by improving traffic and increased loyalty members, besides enhancing site navigation strength and product assortments. Rewards jumped to 57% of net sales in the fiscal third-quarter compared with 47% last year. Further, revenues from Rewards members improved 24% over the years.
Looking ahead, the company expects its small market strategy along with growth of omni-channel capabilities to enrich customers' experience, consequently positioning Hibbett well for long-term growth.
Store Growth & Inventory Management
Hibbett looks focused with its store expansion and inventory management initiatives. The company reaps benefits from small market strategy owing to its enhanced presence across the country as well. Moreover, it targets expansion in markets where Hibbett is needed and which offer increased potential for future growth. Also, the company reiterated its target of growing to over 1,500 stores in undeserved markets.
Additionally, the company is stringently working on inventory management initiatives despite a challenging environment.
Final Thoughts
Hibbett’s robust earnings trend and outlook as well as growth strategies portrays that it is poised for more growth ahead. Furthermore, the company’s financial flexibility and ability to generate a strong operating cash flow has helped it to execute long-term strategies such as store expansion, enhancement of products and brand offerings as well as building operational infrastructure.
Do Retail-Miscellaneous Stocks Grab Your Attention? Check These
Five Below delivered an average positive earnings surprise of 15.5% in the trailing four quarters. It has a long-term earnings growth rate of 28.7%.
Tractor Supply pulled off an average positive earnings surprise of 1.6% in the trailing four quarters. In addition, it has a long-term earnings growth rate of 13.7%
Dick’s Sporting Goods delivered an average positive earnings surprise of 3.4% in the trailing four quarters. It has a long-term earnings growth rate of 6.2%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Hibbett (HIBB) Looks Bullish: Stock to Gain From Strategies
Hibbett Sports Inc. (HIBB - Free Report) is putting up a good show driven by its sturdy growth initiatives, improvement in the footwear and apparel businesses, strong ecommerce sales and extensive store expansion. These endeavors have backed the company’s robust surprise trend and an excellent stock momentum in the recent months. Evidently, Hibbett’s shares surged 80.5% in the past three months, outperforming industry’s growth of 17.5%.
Let’s analyze the factors driving this Zacks Rank #1 (Strong Buy) stock’s performance.
Solid Surprise Trend & Outlook
Hibbett Sports has to its credit a positive surprise history as it has topped earnings estimates in the trailing three quarters. The company has recorded an average trailing fourth-quarter beat of 25.6%. Further, it reported positive sales surprise in the last reported quarter after two consecutive quarters of miss. The company is gaining from improvement in the footwear and apparel businesses as well as strong e-commerce sales.
Moreover, Hibbett remains well positioned to gain from growth of omni-channel capabilities, improved Rewards members, and small market strategy and inventory management initiatives.
Furthermore, Hibbett’s robust outlook for fiscal 2018 drives optimism. The company envisions earnings for fiscal 2018 in the range of $1.42-$1.50 per share. The Zacks Consensus Estimate for the fiscal is pegged at $1.50 per share, which is at the higher-end of the company’s guidance.
Growth Strategies Show Potential
Hibbett remains encouraged by the progress in internal initiatives amid challenging external environment. These initiatives include the launch of its new e-commerce site and the re-launch of its loyalty program. Notably, e-commerce has contributed 5% to net sales in fiscal third-quarter benefiting from the company’s early marketing plan and strong conversion from online traffic.
Additionally, its ongoing marketing initiatives boosted sales by improving traffic and increased loyalty members, besides enhancing site navigation strength and product assortments. Rewards jumped to 57% of net sales in the fiscal third-quarter compared with 47% last year. Further, revenues from Rewards members improved 24% over the years.
Looking ahead, the company expects its small market strategy along with growth of omni-channel capabilities to enrich customers' experience, consequently positioning Hibbett well for long-term growth.
Store Growth & Inventory Management
Hibbett looks focused with its store expansion and inventory management initiatives. The company reaps benefits from small market strategy owing to its enhanced presence across the country as well. Moreover, it targets expansion in markets where Hibbett is needed and which offer increased potential for future growth. Also, the company reiterated its target of growing to over 1,500 stores in undeserved markets.
Additionally, the company is stringently working on inventory management initiatives despite a challenging environment.
Final Thoughts
Hibbett’s robust earnings trend and outlook as well as growth strategies portrays that it is poised for more growth ahead. Furthermore, the company’s financial flexibility and ability to generate a strong operating cash flow has helped it to execute long-term strategies such as store expansion, enhancement of products and brand offerings as well as building operational infrastructure.
Do Retail-Miscellaneous Stocks Grab Your Attention? Check These
Investors interested in this space may consider Five Below Inc. (FIVE - Free Report) , Tractor Supply Company (TSCO - Free Report) and Dick’s Sporting Goods Inc. (DKS - Free Report) . While Five Below flaunts a Zacks Rank #1, Tractor Supply and Dick’s Sporting carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Five Below delivered an average positive earnings surprise of 15.5% in the trailing four quarters. It has a long-term earnings growth rate of 28.7%.
Tractor Supply pulled off an average positive earnings surprise of 1.6% in the trailing four quarters. In addition, it has a long-term earnings growth rate of 13.7%
Dick’s Sporting Goods delivered an average positive earnings surprise of 3.4% in the trailing four quarters. It has a long-term earnings growth rate of 6.2%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>