Hibbett shares edge lower after quarterly sales trail expectations
The retailer beat FactSet profit estimates for fiscal first quarter, but revenue and comparable sales fell short as JD Sports’ $1.1bn deal remains pending.
By Marcus V. Thorne · Markets Editor
· 2 min read
Hibbett Inc. shares fell 0.6% in premarket trading Wednesday after the sporting goods retailer reported fiscal first-quarter revenue below Wall Street expectations, despite earnings that exceeded analysts’ forecasts. The company posted sales of $447.2 million, down from $455.5 million a year earlier and below the $452.9 million expected by analysts surveyed by FactSet.
Net income for the quarter was $32.5 million, or $2.67 a share, compared with $35.9 million, or $2.74 a share, in the same quarter last year. FactSet’s analyst survey had pointed to earnings of $2.58 a share.
The results show pressure on Hibbett’s top line even as per-share profit came in ahead of consensus. For retailers, a sales miss can weigh on shares because revenue trends affect operating leverage, inventory planning and investors’ assessment of demand across store networks and digital channels.
Chief Executive Mike Longo said in prepared remarks that Hibbett’s sales and diluted earnings per share for the first quarter of fiscal 2025 were consistent with the company’s expectations. He described the athletic footwear and apparel retail market as very challenging.
Comparable-store sales declined 5.8% in the quarter, according to Hibbett. Analysts surveyed by FactSet had expected a 4.3% decline. The metric, also called same-store sales, measures sales at locations included in both comparison periods and is closely watched because it strips out some of the effect of openings and closures.
Hibbett did not revise its previously issued financial guidance. The Alabama-based company cited its pending transaction with JD Sports Fashion as the reason for not providing an update.
JD Sports announced in April that it had agreed to buy Hibbett for $1.1 billion. The deal would combine JD Sports with a U.S. retailer focused on athletic footwear and apparel, though Hibbett’s latest update did not add new details on the transaction beyond referencing its pending status.
Hibbett’s shares had gained 19.8% in 2024 before the latest premarket move cited by MarketWatch, outpacing the S&P 500 index’s 10.9% advance over the same period. The stock’s year-to-date performance reflects the market’s response to the company’s operating results and the announced acquisition, while Wednesday’s early decline followed the revenue and comparable-sales shortfalls against FactSet estimates.
This story draws on original reporting from MarketWatch.
