**Hibbett Sports Reports Quarterly Sales Decline, Posts Modest Gains in Half-Yearly Sales**
**Earnings Summary**
– Second-quarter sales decreased by 2.3% to $343.4 million, missing analyst estimates by $4.53 million.
– Comparable sales fell by 2.7%, primarily due to a decline in athletic footwear and apparel.
– Gross margin expanded by 60 basis points to 35.2% as a result of favorable product mix and cost optimization initiatives.
– Net income declined by 12.5% to $23.1 million, resulting in diluted earnings per share of $1.28, below analysts’ consensus of $1.35.
– For the first half of fiscal 2023, sales increased by a modest 1.1% to $697.3 million, with comparable sales remaining flat.
– Net income for the half-year period decreased by 4.3% to $48.6 million, with diluted EPS amounting to $2.68.
**Key Points**
– Hibbett Sports attributed the quarterly sales decline to macroeconomic headwinds, including inflationary pressures and consumer spending shifts.
– The company noted improvements in its inventory position, with a 10% reduction in inventory levels compared to the previous quarter.
– Hibbett Sports remains optimistic about its long-term growth prospects, citing its strong brand recognition, loyal customer base, and ongoing store expansion plans.
**Analyst Commentary**
Analysts have expressed mixed reactions to Hibbett Sports’ quarterly results. Some analysts believe that the sales decline is a temporary setback, while others have raised concerns about the company’s ability to maintain profitability amidst challenging economic conditions.
**Stock Performance**
Following the earnings announcement, Hibbett Sports’ stock price dropped by approximately 5% in premarket trading.
**Conclusion**
Hibbett Sports’ quarterly sales decline highlights the challenges facing retailers in the current economic environment. However, the company’s modest growth in half-yearly sales and ongoing initiatives to improve profitability suggest that it remains well-positioned for the long term..
