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Hibbett (HIBB) Issues Q4 Business Update & FY23 Guidance
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Hibbett, Inc. (HIBB - Free Report) provided insights into its fourth-quarter fiscal 2022 results along with the fiscal 2023 guidance. The company’s top line in the fourth quarter of fiscal 2022 has been adversely impacted by the ongoing supply-chain disruptions, cost inflation and the resurgence of COVID-19 cases, which led to lower traffic and transaction counts in the latter half of the fiscal fourth quarter. However, its enhanced omnichannel capabilities, improved merchandise assortment, distribution facilities and store support center are likely to have provided some cushion.
For fourth-quarter fiscal 2022, net sales rose 1.7% year over year to $383.3 million. Net sales advanced 22.5% on a two-year basis. Despite solid sales during the holiday season; supply-chain issues, particularly in the footwear category, and a rise in Omicron cases hurt traffic and transactions in the latter half of the fiscal fourth quarter.
Comparable sales (comps) fell 1%, which compares unfavorably with its prior view of high single-digit growth. However, comps advanced 20.7% on a two-year basis. Store comps declined 1.6% year over year and increased 15.9% on a two-year basis. However, online comps grew 1.8%, accounting for 17.1% of total sales. On a two-year basis, online comps rose 48.1%.
The company expects the gross margin to decline year over year in the fiscal fourth quarter, which has been unchanged. This is mainly due to shifting launch schedules, higher promotions, elevated freight costs and a rise in store occupancy costs stemming from dismal comp sales.
On the flip side, store SG&A expenses, as a percentage of sales, are estimated to decrease year over year, driven by efficient wage management and reduced impairment charges, which somewhat offset higher advertising costs, transaction fees and back-office infrastructure expenses. Consequently, the bottom line is expected to be $1.18-$1.25, down from the earlier stated $1.85-$2.05. It also compares unfavorably with the prior-year quarter’s reported figure of $1.40.
Driven by the above-mentioned factors, as well as continued economic challenges, including ongoing supply-chain disruption, a lack of stimulus and unemployment benefits, and cost inflation; management issued a drab fiscal 2023 view. For fiscal 2023, the company expects sales to remain flat year over year with a low-single-digit comps decline. It also revealed plans to open 30-40 stores in fiscal 2023.
The gross margin is likely to contract 130-160 bps year over year for fiscal 2023 due to a higher mix of e-commerce sales, increased promotion and inflation. However, the gross margin is anticipated to remain above the pre-pandemic levels. The operating margin is estimated to be in the low double-digits.
For fiscal 2023, SG&A, as a percentage of sales, is envisioned to expand 70-100 bps year over year, owing to wage inflation, higher fixed cost, flat sales view and back-office infrastructure investments in fiscal 2022. The SG&A rate is expected to be lower than pre-pandemic levels. The bottom line is anticipated to be $9.75-$10.25. Management also noted that it doesn’t foresee any material differences between GAAP and Non-GAAP figures.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have plunged 50% in the past three months compared with the industry’s decline of 31%.
Boot Barn Holdings, the leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently flaunts a Zacks Rank #1(Strong Buy). In the last reported quarter, the company posted adjusted earnings of $2.23 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period. BOOT has an expected EPS growth rate of 20% for three-five years.
Wolverine World Wide is one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. It currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial-year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.
DICK'S Sporting Goods, a sporting goods retailer, presently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 104.2%, on average.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial-year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.
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Hibbett (HIBB) Issues Q4 Business Update & FY23 Guidance
Hibbett, Inc. (HIBB - Free Report) provided insights into its fourth-quarter fiscal 2022 results along with the fiscal 2023 guidance. The company’s top line in the fourth quarter of fiscal 2022 has been adversely impacted by the ongoing supply-chain disruptions, cost inflation and the resurgence of COVID-19 cases, which led to lower traffic and transaction counts in the latter half of the fiscal fourth quarter. However, its enhanced omnichannel capabilities, improved merchandise assortment, distribution facilities and store support center are likely to have provided some cushion.
For fourth-quarter fiscal 2022, net sales rose 1.7% year over year to $383.3 million. Net sales advanced 22.5% on a two-year basis. Despite solid sales during the holiday season; supply-chain issues, particularly in the footwear category, and a rise in Omicron cases hurt traffic and transactions in the latter half of the fiscal fourth quarter.
Comparable sales (comps) fell 1%, which compares unfavorably with its prior view of high single-digit growth. However, comps advanced 20.7% on a two-year basis. Store comps declined 1.6% year over year and increased 15.9% on a two-year basis. However, online comps grew 1.8%, accounting for 17.1% of total sales. On a two-year basis, online comps rose 48.1%.
The company expects the gross margin to decline year over year in the fiscal fourth quarter, which has been unchanged. This is mainly due to shifting launch schedules, higher promotions, elevated freight costs and a rise in store occupancy costs stemming from dismal comp sales.
On the flip side, store SG&A expenses, as a percentage of sales, are estimated to decrease year over year, driven by efficient wage management and reduced impairment charges, which somewhat offset higher advertising costs, transaction fees and back-office infrastructure expenses. Consequently, the bottom line is expected to be $1.18-$1.25, down from the earlier stated $1.85-$2.05. It also compares unfavorably with the prior-year quarter’s reported figure of $1.40.
Driven by the above-mentioned factors, as well as continued economic challenges, including ongoing supply-chain disruption, a lack of stimulus and unemployment benefits, and cost inflation; management issued a drab fiscal 2023 view. For fiscal 2023, the company expects sales to remain flat year over year with a low-single-digit comps decline. It also revealed plans to open 30-40 stores in fiscal 2023.
The gross margin is likely to contract 130-160 bps year over year for fiscal 2023 due to a higher mix of e-commerce sales, increased promotion and inflation. However, the gross margin is anticipated to remain above the pre-pandemic levels. The operating margin is estimated to be in the low double-digits.
For fiscal 2023, SG&A, as a percentage of sales, is envisioned to expand 70-100 bps year over year, owing to wage inflation, higher fixed cost, flat sales view and back-office infrastructure investments in fiscal 2022. The SG&A rate is expected to be lower than pre-pandemic levels. The bottom line is anticipated to be $9.75-$10.25. Management also noted that it doesn’t foresee any material differences between GAAP and Non-GAAP figures.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have plunged 50% in the past three months compared with the industry’s decline of 31%.
Stocks to Consider
Here are three better-ranked stocks — DICK'S Sporting Goods (DKS - Free Report) , Boot Barn Holdings (BOOT - Free Report) and Wolverine World Wide (WWW - Free Report) .
Boot Barn Holdings, the leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently flaunts a Zacks Rank #1(Strong Buy). In the last reported quarter, the company posted adjusted earnings of $2.23 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period. BOOT has an expected EPS growth rate of 20% for three-five years.
Wolverine World Wide is one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. It currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial-year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.
DICK'S Sporting Goods, a sporting goods retailer, presently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 104.2%, on average.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial-year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.