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Hibbett (HIBB) Looks Well-Poised on Robust Growth Strategies
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Hibbett Inc. (HIBB - Free Report) is benefiting from its smooth execution of strategies, which are helping it win market share. A robust customer service, a best-in-class omnichannel shopping experience, sturdy vendor relationships, in-store placement and underserved markets are other positives. Its footwear category has been a key driver, mainly for premium brands.
These efforts are evident from its third-quarter fiscal 2024 results, wherein sales and earnings surpassed the Zacks Consensus Estimate, and the latter increased year over year. Sales were aided by a strong back-to-school season that occurred in the first month of the reported quarter. Results in the footwear category were driven by strength in basketball, lifestyle and running silhouettes.
In the fiscal third quarter, Hibbett gained from a regular schedule of product launches, which had a positive response from the company’s brand-loyal customers. Further, the establishment of a partnership with Nike was a significant development in the fiscal third quarter, involving the connection between Hibbett and Nike’s loyalty programs to offer exclusive experiences. The company is also focused on improved expense management and disciplined inventory controls.
Gains from these positive trends have been well-reflected in its share price. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 54% in the past six months, outpacing the industry’s growth of 28.5%. The stock also fared better than the Retail-Wholesale sector and the S&P 500’s rise of 7.9% and 4.5%, respectively, in the same period.
Image Source: Zacks Investment Research
Factors Aiding Growth
Hibbett is encouraged by the progress it is making on the e-commerce front and the expansion of its loyalty program. HIBB remains focused on increasing its customer base by connecting with more customers through e-commerce and selective store expansion. Further, 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 facility, same-day delivery, and mobile app services to fulfill online orders and serve customers.
E-commerce sales rose 12.6% year over year in third-quarter fiscal 2024 and the metric surged 174.4% on a three-year stack, driven by better inventory, robust traffic across the website and app, as well as improved digital customer experience. E-commerce accounted for 17% of overall sales in the 13 weeks ended Oct 28, 2023, up from 15% in the 13 weeks ended Oct 29, 2022.
For fiscal 2024, Hibbett expects e-commerce sales to be flat to up in the low-single digits. The company is progressing well with its loyalty program, as loyalty sales improved in the single digits during the reported quarter. This was buoyed by higher members shopping on continued engagement from the existing members and average ticket growth on increased average unit retail.
HIBB has been making improvements to the loyalty program, evident from its partnership with Nike’s loyalty program. This will further distinguish the company’s retail experience, as customers can sign up to be a Connected member either in store or online.
Management is optimistic about the business trends, consistent with its expectations. It remains committed to additional product launches during the holidays, which is likely to aid sales. Hibbett expects net sales of flat to a 2% rise for fiscal 2023. The company raised its earnings per share guidance as well. Earnings are anticipated to be $8-$8.30 per share compared with the earlier mentioned $7-$7.75. Markedly, HIBB is on track to achieve a year-over-year mid-teen inventory decrease at the end of the fiscal year.
Abercrombie, a specialty retailer of premium, high-quality casual apparel for men, women and kids, currently sports a Zacks Rank #1. ANF has a trailing four-quarter earnings surprise of 713%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales indicates growth of 15.1% from the year-ago reported number. The consensus estimate for earnings suggests significant growth from the year-ago quarter.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 11.7% and 21.9%, respectively, from the year-ago reported numbers. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It currently carries a Zacks Rank #2. AEO has a trailing four-quarter average earnings surprise of 23%.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales and earnings indicates growth of 5% and 43.3%, respectively, from the previous year’s reported figures.
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Hibbett (HIBB) Looks Well-Poised on Robust Growth Strategies
Hibbett Inc. (HIBB - Free Report) is benefiting from its smooth execution of strategies, which are helping it win market share. A robust customer service, a best-in-class omnichannel shopping experience, sturdy vendor relationships, in-store placement and underserved markets are other positives. Its footwear category has been a key driver, mainly for premium brands.
These efforts are evident from its third-quarter fiscal 2024 results, wherein sales and earnings surpassed the Zacks Consensus Estimate, and the latter increased year over year. Sales were aided by a strong back-to-school season that occurred in the first month of the reported quarter. Results in the footwear category were driven by strength in basketball, lifestyle and running silhouettes.
In the fiscal third quarter, Hibbett gained from a regular schedule of product launches, which had a positive response from the company’s brand-loyal customers. Further, the establishment of a partnership with Nike was a significant development in the fiscal third quarter, involving the connection between Hibbett and Nike’s loyalty programs to offer exclusive experiences. The company is also focused on improved expense management and disciplined inventory controls.
Gains from these positive trends have been well-reflected in its share price. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 54% in the past six months, outpacing the industry’s growth of 28.5%. The stock also fared better than the Retail-Wholesale sector and the S&P 500’s rise of 7.9% and 4.5%, respectively, in the same period.
Image Source: Zacks Investment Research
Factors Aiding Growth
Hibbett is encouraged by the progress it is making on the e-commerce front and the expansion of its loyalty program. HIBB remains focused on increasing its customer base by connecting with more customers through e-commerce and selective store expansion. Further, 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 facility, same-day delivery, and mobile app services to fulfill online orders and serve customers.
E-commerce sales rose 12.6% year over year in third-quarter fiscal 2024 and the metric surged 174.4% on a three-year stack, driven by better inventory, robust traffic across the website and app, as well as improved digital customer experience. E-commerce accounted for 17% of overall sales in the 13 weeks ended Oct 28, 2023, up from 15% in the 13 weeks ended Oct 29, 2022.
For fiscal 2024, Hibbett expects e-commerce sales to be flat to up in the low-single digits. The company is progressing well with its loyalty program, as loyalty sales improved in the single digits during the reported quarter. This was buoyed by higher members shopping on continued engagement from the existing members and average ticket growth on increased average unit retail.
HIBB has been making improvements to the loyalty program, evident from its partnership with Nike’s loyalty program. This will further distinguish the company’s retail experience, as customers can sign up to be a Connected member either in store or online.
Management is optimistic about the business trends, consistent with its expectations. It remains committed to additional product launches during the holidays, which is likely to aid sales. Hibbett expects net sales of flat to a 2% rise for fiscal 2023. The company raised its earnings per share guidance as well. Earnings are anticipated to be $8-$8.30 per share compared with the earlier mentioned $7-$7.75. Markedly, HIBB is on track to achieve a year-over-year mid-teen inventory decrease at the end of the fiscal year.
Other Key Picks
Some other top-ranked stocks are Abercrombie & Fitch (ANF - Free Report) , Deckers Outdoor (DECK - Free Report) and American Eagle Outfitters (AEO - Free Report) .
Abercrombie, a specialty retailer of premium, high-quality casual apparel for men, women and kids, currently sports a Zacks Rank #1. ANF has a trailing four-quarter earnings surprise of 713%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales indicates growth of 15.1% from the year-ago reported number. The consensus estimate for earnings suggests significant growth from the year-ago quarter.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 11.7% and 21.9%, respectively, from the year-ago reported numbers. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It currently carries a Zacks Rank #2. AEO has a trailing four-quarter average earnings surprise of 23%.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales and earnings indicates growth of 5% and 43.3%, respectively, from the previous year’s reported figures.