Hibbett Sports, Inc. reported a decline in its third-quarter sales, but raised its earnings guidance for the full year due to a promising holiday season.
**Financial Results:**
* **Net Sales:** Hibbett’s net sales decreased by 6.9% to $315.1 million from $337.4 million in the prior-year quarter.
* **Comparable Store Sales:** Comparable store sales fell by 6.1% in the quarter.
* **Net Income:** The company’s net income increased to $16.6 million, or $0.83 per diluted share, from $8.1 million, or $0.40 per diluted share in the third quarter of last year.
* **Earnings Per Share:** Diluted earnings per share grew by 107.5% to $0.83, beating analysts’ estimates of $0.74 per share.
**Positive Outlook:**
Despite the sales decline, Hibbett expressed optimism about its financial performance for the full year. The company updated its guidance, projecting net sales to be in the range of $1.26 billion to $1.28 billion, compared to its previous estimate of $1.25 billion to $1.27 billion.
Hibbett also raised its earnings per share guidance to $3.04 to $3.14, up from its previous range of $2.90 to $3.00 per share. Analysts had anticipated earnings per share of $3.04.
**Holiday Boost:**
The company attributed its improved outlook to strong sales during the holiday period. Hibbett’s comparable store sales increased in the mid-single digits during the holiday season, driven by demand for athletic footwear and apparel.
**CEO’s Perspective:**
Jeffrey Rosenthal, President and CEO of Hibbett Sports, commented: .
