Hibbett, Inc. (HIBB Quick QuoteHIBB - Free Report) has exhibited a decent run on the bourses in the past year, thanks to pent-up demand, enhanced assortment of highly coveted merchandise and improved omni-channel capabilities. Shares of this Rank #3 (Hold) stock have surged 58.3% against the industry and Retail-Wholesale sector’s 7.2% and 6.9% decline, respectively.

An uptrend in the Zacks Consensus Estimate also echoes the same sentiment. The consensus estimate for the current and next financial year has increased about 3.7% and 2.5%, respectively, in the past 30 days. Its long-term earnings growth rate of 25.1% also indicates optimism.

Let’s Delve Deeper

Hibbett has been witnessing better customer retention, continued strength in the online channel, availability of on-demand products and government stimulus payments. Strength in apparel, footwear, and team sports along with the solid back-to-school season across all categories and genders also bode well.

A robust assortment of merchandise and expanded omnichannel capabilities led to substantial traffic, higher average ticket, and a greater number of items purchased per transaction. Investments in stores and the online business as well as strong vendor relationships contributed to growth in Hibbett and City Gear brands in the last reported quarter.

Driven by these factors, HIBB delivered impressive third-quarter fiscal 2022 results, wherein the bottom and top lines improved year over year. This marked the company's sixth straight quarter of earnings beat.

For third-quarter fiscal 2022, net sales rose 15.2% year over year and advanced 38.6% from third-quarter fiscal 2020. Comparable store sales (comps) increased 13% and in-store comps grew 11.6% for the third quarter of fiscal 2021, driven by double-digit growth in both stores and online. Comps skyrocketed 37.4% and in-store comps advanced 31.6% on a two-year basis.

The company has been gaining from solid online show and expansion of the loyalty program. It remains focused on increasing the customer base by connecting with more customers through e-commerce and selective store expansion. Further, HIBB is leveraging 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 facility, same-day delivery, and mobile app services to fulfill online orders and serve customers. E-commerce sales grew 22.3% year over year and surged 84.2% on a two-year basis. It accounted for 14% of total sales, reflecting an improvement from 13.2% in the year-ago period.

HIBB is also on track with store expansion and inventory-management initiatives. The company has a target of expanding to more than 1,500 stores in underserved markets. In third-quarter fiscal 2022, it opened seven stores and shut one underperforming outlet, bringing the total store count to 1,086.

Management raised its view for fiscal 2022. The company noted that it doesn’t foresee any material difference between GAAP and non-GAAP figures. It now expects comps growth in high teens for fiscal 2022, up from the earlier mentioned mid-teens growth.

For fourth-quarter fiscal 2022, comps are likely to grow in high-single digits, with gross margin envisioned to decline year over year. Hibbett reiterated its view of positive GAAP and non-GAAP gross margin for fiscal 2022. SG&A expenses, as a percentage of sales, are projected to decline year over year for the fourth quarter and fiscal 2022. Adjusted earnings are envisioned to be $11.70-$11.90 per share, reflecting an improvement from the previously mentioned $11-$11.50. The company also projects the bottom line within $1.85-$2.05 for the fiscal fourth quarter.

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Yet, Hibbett continues to reel under industry-wide higher freight and transportation costs. It expects to witness supply chain disruptions in the coming days, which in turn may result in higher freight expenses. The company also predicts elevated shipping costs and deleverage from store occupancy cost. Management expects the supply chain to remain challenged in first-quarter fiscal 2023.

Here’s How Other Stocks Fared

We have highlighted three better-ranked stocks in the Retail - Wholesale sector, namely Capri Holdings (CPRI Quick QuoteCPRI - Free Report) , Boot Barn Holdings (BOOT Quick QuoteBOOT - Free Report) and Tractor Supply Company (TSCO Quick QuoteTSCO - Free Report) .

Capri Holdings, which operates membership warehouses, presently flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 1024.9%, on average. Shares of CPRI have rallied 59.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Capri Holdings’ sales and EPS for the current financial year suggests respective growth of 12.6% and 1.2% from the year-ago period’s reported figures. CPRI has an expected EPS growth rate of 56.4% for three-five years.

Boot Barn Holdings — the lifestyle retailer of western and work-related footwear, apparel, and accessories — currently holds a Zacks Rank #2 (Buy). Shares of BOOT have skyrocketed 193.9% over a year.

The Zacks Consensus Estimate for Boot Barn Holdings’ sales and earnings per share (EPS) for the current financial year suggests growth of 54.4% and 183.3%, respectively, from the year-ago reported figures. BOOT has a trailing four-quarter earnings surprise of 35.3%, on average.

Tractor Supply, a rural lifestyle retailer in the United States, currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 22.8%, on average. Shares of TSCO have surged 72.7% over a year.

The Zacks Consensus Estimate for Tractor Supply’s sales and EPS for the current financial year suggests growth of 19% and 23.9%, respectively, from the year-ago reported numbers. TSCO has an expected EPS growth rate of 9.6% for three-five years.