Tue, Jun 11, 4:07 PM (88 days ago)
Hibbett, Inc. reported a 1.8% decline in net sales for the quarter ending May 4, 2024, totaling $447.2 million, compared to $455.5 million in the same period last year. Comparable store sales decreased by 5.8%, with both brick-and-mortar and e-commerce sales experiencing similar declines. Despite the sales drop, the gross margin improved to 35.8% from 33.7%, driven by higher product margins and reduced promotional activity. However, store operating, selling, and administrative expenses rose to 23.7% of net sales, up from 21.1%, due to inflation and costs related to a pending merger with JD Sports. Net income fell to $32.5 million, or $2.67 per diluted share, from $35.9 million, or $2.74 per diluted share, in the prior year. Cash and cash equivalents increased to $28.7 million, and inventory levels decreased by 15.2% year-over-year. The company continues to monitor macroeconomic factors such as inflation and consumer behavior, which may impact future performance. The merger with JD Sports is expected to close in the third quarter of 2024.