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Factors Likely to Influence Hibbett's (HIBB) Q2 Earnings

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Hibbett, Inc. (HIBB - Free Report) is scheduled to report second-quarter fiscal 2022 numbers on Aug 27, before the opening bell. The retailer of athletic-inspired fashion products is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal second-quarter earnings of $1.24 per share suggests a decrease of 58% from $2.95 reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $331.2 million, indicating a decline of 25% from the figure reported in the year-ago quarter.

The company’s bottom line surpassed the Zacks Consensus Estimate by 111% in the last reported quarter. Hibbett has a trailing four-quarter earnings surprise of 109%, on average.

Hibbett, Inc. Price and EPS Surprise

 

Key Factors to Note

Hibbett has been gaining from continued positive momentum, driven by enhanced omnichannel capabilities and robust demand, particularly in footwear, apparel and accessories. Customer acquisitions, improved store-level engagement, solid demand and additional stimulus payments also bode well. The demand for athleisure, loungewear, and performance products along with the recovery in Team Sports is expected to have contributed to fiscal second-quarter sales.

The company has been witnessing a solid online show on the back of 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, same-day delivery, and mobile app services. It has been on track with its efforts to expand its customer base by connecting with more customers through e-commerce and selective store expansion. On the store-front, management’s store-expansion initiatives are expected to have been upsides. Gains from the endeavors are expected to get reflected in the to-be-reported quarter’s results.

However, it has been witnessing higher SG&A expenses for quite some time now. Increased investments in the e-commerce space, as more consumers are now thronging its website, have been causing the deleverage in SG&A expenses.

On its last reported quarter’s earnings call, the company stated that SG&A expenses are expected to rise further in the remaining three quarters of fiscal 2022.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hibbett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hibbett has a Zacks Rank #1 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +6.14% and it sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +15.26% and it currently flaunts a Zacks Rank #1.

American Eagle Outfitters, Inc. (AEO - Free Report) currently has an Earnings ESP of +1.44% and a Zacks Rank #3.