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Will Soft Demand Continue to Mar Hibbett's (HIBB) Q4 Earnings?
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Hibbett, Inc. (HIBB - Free Report) is likely to witness year-over-year growth in its top line when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for revenues is pegged at $476.2 million, indicating growth of 3.9% from the prior-year quarter’s reported figure.
For the fiscal fourth quarter, the consensus estimate for earnings has moved up by a penny in the past 30 days to $2.54. However, the consensus mark indicates a decline of 12.7% from that reported in the prior-year period.
For fiscal 2024 earnings, the Zacks Consensus Estimate is pegged at $8.17 per share, suggesting a 15.1% decline from the year-ago quarter’s reported figure. The consensus mark has moved up by a penny in the past 30 days. The consensus estimate for the company’s fiscal 2024 revenues is pegged at $1.7 billion, implying 1.8% growth from the prior-year quarter’s reported figure.
Hibbett, which engages in the retail of athletic-inspired fashion products, has delivered a trailing four-quarter earnings surprise of 24.2%, on average. HIBB’s earnings beat the Zacks Consensus Estimate by 81.4% in the last reported quarter.
Hibbett has been witnessing exceptional consumer experience in underserved markets along with positive customer response stemming from compelling product assortment and market share gains. Strength across footwear and men's, women's and kids’ apparel also bodes well. Its footwear category has been a key driver, mainly for premium brands. This is expected to have boosted top-line and bottom-line performances for the fiscal fourth quarter. The company has been focused on its store growth plan and improved product assortment to attract consumers.
Solid e-commerce business and the expansion of the loyalty program bode well. Hibbett has been boosting its customer base by connecting with more customers through e-commerce and selective store expansion. Further, it is leveraging its omnichannel 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. HIBB is progressing well with its loyalty program to enhance its omnichannel initiatives.
On the last reported quarter’s earnings call, Hibbett expected e-commerce sales to be flat to up low-single digits for fiscal 2024.
However, Hibbett’s fiscal fourth-quarter 2024 results are expected to reflect continued headwinds from muted discretionary spending due to inflation, which has been affecting consumer sentiments. In addition, the company's apparel business has been witnessing soft demand as the category is being affected by higher promotions owing to the elevated inventories.
On the last reported quarter’s earnings call, management anticipated headwinds from a continued aggressive promotional backdrop to persist throughout the fiscal fourth quarter. For fiscal 2024, management anticipates comparable sales and in-store comps to decline in the low-single digits each. Hibbett expected net sales to be between flat and a 2% rise for fiscal 2024.
HIBB has been witnessing elevated inventory due to product cost inflation and an unfavorable mix. Hibbett has been reeling under higher costs for essential items like food, utilities and gas, resulting in reduced discretionary spending. Persistent inflation has continued to affect consumer sentiment and spending patterns, which, in turn, led to increases in operating costs, including higher wages and prices for various goods and services.
For fiscal 2024, the company envisioned a gross margin of 33.9-34%, whereas the operating margin is predicted to be 7.6-8%. SG&A, as a percent of net sales, is estimated to be 23.1-23.3%.
Our model predicts a gross margin of 34% for fiscal 2024, suggesting a 120-bps decline from the year-ago quarter’s actual. We expect the gross margin to expand 20 bps to 35.4% in the fiscal fourth quarter. We expect SG&A expenses, as a percentage of sales, to increase 180 bps year over year in the fiscal fourth quarter and 30 bps in fiscal 2024.
Our model predicts an adjusted operating margin of 9.2%, down 190 bps from the year-ago quarter’s actual in the fiscal fourth quarter. In fiscal 2024, adjusted operating margin is expected to contract 180 bps year over year to 8.1%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hibbett this time. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hibbett has an Earnings ESP of -0.71% and currently has a Zacks Rank #2.
Stocks With the Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. The company is likely to register top-line and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The consensus mark for AEO’s quarterly revenues is pegged at $1.7 billion, which suggests growth of 11.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEO’s earnings has been unchanged at 50 cents per share in the past 30 days. The consensus estimate indicates 35.1% growth from the year-ago quarter’s reported figure.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. The company is likely to register top-line and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The consensus mark for DKS’ quarterly revenues is pegged at $3.8 billion, which suggests growth of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for DICK'S Sporting earnings has moved up 1.2% to $3.33 per share in the past 30 days. The consensus estimate indicates growth of 13.7% from the year-ago quarter’s actual.
Costco Wholesale (COST - Free Report) presently has an Earnings ESP of +1.58% and a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter fiscal 2023 results. The consensus mark for COST’s quarterly revenues is pegged at $59.2 billion, which suggests 7.1% growth from the figure reported in the prior-year quarter.
The consensus mark for COST’s quarterly earnings has moved up 1.1% in the past 30 days to $3.60 per share. The consensus estimate suggests growth of 9.1% from the year-ago quarter’s actual.
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Will Soft Demand Continue to Mar Hibbett's (HIBB) Q4 Earnings?
Hibbett, Inc. (HIBB - Free Report) is likely to witness year-over-year growth in its top line when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for revenues is pegged at $476.2 million, indicating growth of 3.9% from the prior-year quarter’s reported figure.
For the fiscal fourth quarter, the consensus estimate for earnings has moved up by a penny in the past 30 days to $2.54. However, the consensus mark indicates a decline of 12.7% from that reported in the prior-year period.
For fiscal 2024 earnings, the Zacks Consensus Estimate is pegged at $8.17 per share, suggesting a 15.1% decline from the year-ago quarter’s reported figure. The consensus mark has moved up by a penny in the past 30 days. The consensus estimate for the company’s fiscal 2024 revenues is pegged at $1.7 billion, implying 1.8% growth from the prior-year quarter’s reported figure.
Hibbett, which engages in the retail of athletic-inspired fashion products, has delivered a trailing four-quarter earnings surprise of 24.2%, on average. HIBB’s earnings beat the Zacks Consensus Estimate by 81.4% in the last reported quarter.
Hibbett, Inc. Price and EPS Surprise
Hibbett, Inc. price-eps-surprise | Hibbett, Inc. Quote
Key Factors to Consider
Hibbett has been witnessing exceptional consumer experience in underserved markets along with positive customer response stemming from compelling product assortment and market share gains. Strength across footwear and men's, women's and kids’ apparel also bodes well. Its footwear category has been a key driver, mainly for premium brands. This is expected to have boosted top-line and bottom-line performances for the fiscal fourth quarter. The company has been focused on its store growth plan and improved product assortment to attract consumers.
Solid e-commerce business and the expansion of the loyalty program bode well. Hibbett has been boosting its customer base by connecting with more customers through e-commerce and selective store expansion. Further, it is leveraging its omnichannel 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. HIBB is progressing well with its loyalty program to enhance its omnichannel initiatives.
On the last reported quarter’s earnings call, Hibbett expected e-commerce sales to be flat to up low-single digits for fiscal 2024.
However, Hibbett’s fiscal fourth-quarter 2024 results are expected to reflect continued headwinds from muted discretionary spending due to inflation, which has been affecting consumer sentiments. In addition, the company's apparel business has been witnessing soft demand as the category is being affected by higher promotions owing to the elevated inventories.
On the last reported quarter’s earnings call, management anticipated headwinds from a continued aggressive promotional backdrop to persist throughout the fiscal fourth quarter. For fiscal 2024, management anticipates comparable sales and in-store comps to decline in the low-single digits each. Hibbett expected net sales to be between flat and a 2% rise for fiscal 2024.
HIBB has been witnessing elevated inventory due to product cost inflation and an unfavorable mix. Hibbett has been reeling under higher costs for essential items like food, utilities and gas, resulting in reduced discretionary spending. Persistent inflation has continued to affect consumer sentiment and spending patterns, which, in turn, led to increases in operating costs, including higher wages and prices for various goods and services.
For fiscal 2024, the company envisioned a gross margin of 33.9-34%, whereas the operating margin is predicted to be 7.6-8%. SG&A, as a percent of net sales, is estimated to be 23.1-23.3%.
Our model predicts a gross margin of 34% for fiscal 2024, suggesting a 120-bps decline from the year-ago quarter’s actual. We expect the gross margin to expand 20 bps to 35.4% in the fiscal fourth quarter. We expect SG&A expenses, as a percentage of sales, to increase 180 bps year over year in the fiscal fourth quarter and 30 bps in fiscal 2024.
Our model predicts an adjusted operating margin of 9.2%, down 190 bps from the year-ago quarter’s actual in the fiscal fourth quarter. In fiscal 2024, adjusted operating margin is expected to contract 180 bps year over year to 8.1%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hibbett this time. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hibbett has an Earnings ESP of -0.71% and currently has a Zacks Rank #2.
Stocks With the Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. The company is likely to register top-line and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The consensus mark for AEO’s quarterly revenues is pegged at $1.7 billion, which suggests growth of 11.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEO’s earnings has been unchanged at 50 cents per share in the past 30 days. The consensus estimate indicates 35.1% growth from the year-ago quarter’s reported figure.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. The company is likely to register top-line and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The consensus mark for DKS’ quarterly revenues is pegged at $3.8 billion, which suggests growth of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for DICK'S Sporting earnings has moved up 1.2% to $3.33 per share in the past 30 days. The consensus estimate indicates growth of 13.7% from the year-ago quarter’s actual.
Costco Wholesale (COST - Free Report) presently has an Earnings ESP of +1.58% and a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter fiscal 2023 results. The consensus mark for COST’s quarterly revenues is pegged at $59.2 billion, which suggests 7.1% growth from the figure reported in the prior-year quarter.
The consensus mark for COST’s quarterly earnings has moved up 1.1% in the past 30 days to $3.60 per share. The consensus estimate suggests growth of 9.1% from the year-ago quarter’s actual.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.