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Here's Why Hibbett (HIBB) is Marching Ahead of the Industry
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Hibbett Sports, Inc. (HIBB - Free Report) has been putting up robust show on improved traffic in stores and the website owing to pent-up customer demand. Driven by this, the company reported impressive third-quarter fiscal 2021 results, wherein the top and bottom lines improved year over year. Encouragingly, management issued a favorable guidance for the fourth quarter of fiscal 2021.
Additionally, shares of this Zacks Rank #1 (Strong Buy) company have rallied 30.5% in the past three months, outperforming the industry and the Retail-Wholesale sector’s growth of 2.2% and 1.7%, respectively.
That said, let’s delve into the factors that make Hibbett a promising bet.
Factors Narrating Hibbett’s Growth Story
Hibbett has been benefiting from robust performance on the e-commerce front and expansion of its loyalty program. It is leveraging its omni-channel capabilities, such as home delivery, buy online and pick-up in store, reserve online and pick-up in store, buy online ship to store and same-day delivery facilities, along with mobile app services to fulfill online orders and serve customers. The company witnessed a strong online show amid the coronavirus pandemic, which contributed to top-line growth in third-quarter fiscal 2021. Notably, online sales advanced 50.7% year over year in the fiscal third quarter. The growth is attributed to customers’ increased adoption of the online mode of shopping.
This resulted in new customer acquisitions, which along with a shift in the timing of the back-to-school season and a solid performance in apparel, accessories and footwear led to comparable store sales growth of 21.2% in the fiscal third quarter. Further, healthy demand in stores and website contributed to third-quarter fiscal 2021 results, wherein both top and bottom lines improved year over year. Going ahead, management expects the top-line momentum to continue for the rest of fiscal 2021.
Keeping in these lines, the company issued favorable GAAP guidance for fourth-quarter fiscal 2021. It expects comps growth in high-single to low-double digits. Apart from these, the bottom line is projected to be $1-$1.1 per share, whose midpoint of $1.05 indicatesa sharp improvement from 51 cents reported in the last-year quarter. Also, gross margin is anticipated to expand nearly 380-400 basis points. It doesn’t foresee any material difference between GAAP and non-GAAP figures.
Bottom Line
All said, we believe that a solid top line, driven by strength in core categories, along with a robust e-commerce business will help the company keep its stellar show on. In fact, a VGM Score of A and a long-term earnings growth rate of 17% reflects its inherent strength.
The TJX Companies (TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #2 (Buy).
Target Corporation (TGT - Free Report) has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Here's Why Hibbett (HIBB) is Marching Ahead of the Industry
Hibbett Sports, Inc. (HIBB - Free Report) has been putting up robust show on improved traffic in stores and the website owing to pent-up customer demand. Driven by this, the company reported impressive third-quarter fiscal 2021 results, wherein the top and bottom lines improved year over year. Encouragingly, management issued a favorable guidance for the fourth quarter of fiscal 2021.
Additionally, shares of this Zacks Rank #1 (Strong Buy) company have rallied 30.5% in the past three months, outperforming the industry and the Retail-Wholesale sector’s growth of 2.2% and 1.7%, respectively.
That said, let’s delve into the factors that make Hibbett a promising bet.
Factors Narrating Hibbett’s Growth Story
Hibbett has been benefiting from robust performance on the e-commerce front and expansion of its loyalty program. It is leveraging its omni-channel capabilities, such as home delivery, buy online and pick-up in store, reserve online and pick-up in store, buy online ship to store and same-day delivery facilities, along with mobile app services to fulfill online orders and serve customers. The company witnessed a strong online show amid the coronavirus pandemic, which contributed to top-line growth in third-quarter fiscal 2021. Notably, online sales advanced 50.7% year over year in the fiscal third quarter. The growth is attributed to customers’ increased adoption of the online mode of shopping.
This resulted in new customer acquisitions, which along with a shift in the timing of the back-to-school season and a solid performance in apparel, accessories and footwear led to comparable store sales growth of 21.2% in the fiscal third quarter. Further, healthy demand in stores and website contributed to third-quarter fiscal 2021 results, wherein both top and bottom lines improved year over year. Going ahead, management expects the top-line momentum to continue for the rest of fiscal 2021.
Keeping in these lines, the company issued favorable GAAP guidance for fourth-quarter fiscal 2021. It expects comps growth in high-single to low-double digits. Apart from these, the bottom line is projected to be $1-$1.1 per share, whose midpoint of $1.05 indicatesa sharp improvement from 51 cents reported in the last-year quarter. Also, gross margin is anticipated to expand nearly 380-400 basis points. It doesn’t foresee any material difference between GAAP and non-GAAP figures.
Bottom Line
All said, we believe that a solid top line, driven by strength in core categories, along with a robust e-commerce business will help the company keep its stellar show on. In fact, a VGM Score of A and a long-term earnings growth rate of 17% reflects its inherent strength.
3 More Stocks to Watch in the Retail Space
DICK’S Sporting Goods, Inc. (DKS - Free Report) has a long-term earnings growth rate of 5.6% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies (TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #2 (Buy).
Target Corporation (TGT - Free Report) has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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