Hibbett Sports, Inc. (HIBB - Free Report) recently clinched a sponsorship deal with the University of Alabama's football program for three years. This leading athleisure retailer, sponsoring Crimson Tide athletics as well as football teams since 2008, has now decided to sponsor the 2017, 2018 and 2019 seasons.
Located in the city of Tuscaloosa, AL, the University of Alabama is one of the largest public research universities in the state. In America, the University of Alabama is represented by Crimson Tide football program.
Per the latest agreement, Hibbett will provide a pre-game Shaker Shack vehicle at each home game near the Walk of Champions. Also, fans will be able to avail various offers proposed by the company. Further, football enthusiasts are likely to win lucrative gifts and prizes like Alabama versus LSU tickets, $1000 Hibbett Sports gift card, a parking pass as well as a pre-game hospitality parcel. Further, they will be able to interact with Honorary Captains, get autographs from ex-players and will be entitled to a host of other opportunities.
This partnership also makes Hibbett as the Presenting Sponsor of the Honorary Captains in all the team's seven home games. Furthermore, the company’s sponsorship essentials consist of stadium signage, promotional advertisements, events, empirical Shaker Shack vehicle on site, along with other related stuff.
A Glimpse of Hibbett’s Performance
Hibbett’s shares have plunged nearly 65.8% year to date, wider than the industry’s decline of 14%. Also, this Zacks Rank #5 (Strong Sell) stock has underperformed the broader Retail-Wholesale sector that gained 15.9%.
This underperformance can be attributable to company’s dismal sales surprise history. Hibbett missed revenue estimates in nine of the last 10 quarters, with the most recent quarter being no exception. Though Hibbett posted narrower-than-expected loss per share in second-quarter fiscal 2018, both the top and bottom lines compared unfavorably with the prior-year period.
Moreover, comparable-store sales were a letdown, marred by sluggish traffic, softness across all categories, increased promotional activities and difficult launch compares. Consequently, management substantially trimmed its guidance for fiscal 2018 and expects the retail environment to remain competitive.
Still Interested in the Retail Space? Check These 3 Key Picks
Some better-ranked stocks in the broader sector are The Children's Place, Inc. (PLCE - Free Report) , Sally Beauty Holdings, Inc. (SBH - Free Report) and Five Below, Inc. (FIVE - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Children's Place has a long-term earnings growth rate of 9%. Also, its earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 16.3%.
Sally Beauty, with a long-term earnings growth rate of 5.6%, has delivered positive earnings surprise of 6.1% in the last quarter.
Five Below has an impressive long-term earnings growth rate of 28.5%. Also, its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters by an average of 8.7%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>