What's going on in the sporting goods market? Hibbett Sports, Inc. (HIBB - Free Report) recently lowered fiscal 2014 earnings and same store sales guidance.
This Zacks Rank #5 (Strong Sell) is only expected to grow earnings by 1.3% in fiscal 2014 as the retail environment remains challenging.
Hibbett Sports operates sporting goods stores predominantly in the South, Southwest, Mid-Atlantic and Midwest regions of the U.S. Its stores average about 5,000-square-feet and are located in strip malls and enclosed malls in small to mid-sized markets.
Comparable Store Sales Soft
On Aug 23, Hibbett reported second quarter results and did beat the Zacks Consensus by 2 cents. Earnings were 40 cents compared to the Consensus of 38 cents.
But comparable same store sales rose just 0.3% year over year. The company blamed the soft sales on a "challenging economic environment."
Fiscal 2014 Guidance Cut
Despite being encouraged by a strong start to the third quarter, and beating the Consensus Estimate for the second quarter, Hibbett still lowered its full year earnings guidance to the range of $2.65 to $2.77 from previous guidance of $2.85 to $3.05.
Full year comparable store sales are now expected to be in the low single-digit range which is down from the low to mid single-digit range it had been forecasting.
The analysts didn't wait around for more news. They cut fiscal 2014 to $2.76 from $2.91 but they also aren't optimistic on fiscal 2015 either. They slashed fiscal 2015 to $3.16 from $3.35.
Shares plunged on news of the cut to full year guidance.
It doesn't look like things will improve in the near term. Even the company said there were "on-going uncertainties" in this economic environment.
If you must own a company in that sector, Big 5 Sporting Goods Corp. (BGFV - Free Report) which is based out west is expected to grow earnings by 79% this year. It's a Zacks Rank #3 (Hold).
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