**Hibbett Experiences Quarterly Sales Decline, Half-Year Sales Rise**
**Hibbett Sports, Inc.**, a leading athletic-inspired fashion retailer, has announced its financial results for the second quarter and half-year ended July 29, 2023.
**Second Quarter Results**
For the second quarter, Hibbett reported a 2.8% decrease in net sales to $327.1 million, compared to $336.2 million in Q2 2022. Comparable store sales, a key metric for retailers, also declined by 2.4% during the quarter.
The company attributed the sales decline to a number of factors, including macroeconomic headwinds, inflationary pressures, and unfavorable weather conditions. Hibbett also noted a shift in consumer spending patterns, with customers prioritizing essential purchases over discretionary items such as athletic apparel and footwear.
**Half-Year Results**
Despite the quarterly decline, Hibbett’s half-year sales performance showed a modest improvement. Total net sales for the first half of fiscal 2023 reached $679.9 million, a 1.3% increase from $671.2 million in the same period last year.
Comparable store sales for the half-year remained flat, indicating a slight recovery from the 2.4% decline in Q2. This suggests that Hibbett’s efforts to mitigate the impact of economic challenges are starting to bear fruit.
**Gross Margin and Expenses**
Hibbett’s gross margin for the second quarter stood at 33.1%, a decrease of 120 basis points compared to 34.3% in Q2 2022. The company cited higher freight and distribution costs, as well as increased markdowns, as contributing factors to the gross margin decline.
Operating expenses, excluding depreciation and amortization, increased by 5.4% to $83.6 million in Q2 2023, primarily due to higher labor and occupancy costs. As a result, Hibbett’s net income for the quarter fell 20.8% to $20.2 million, or $0.81 per diluted share, compared to $25.5 million, or $1.02 per diluted share, in Q2 2022.
**Outlook**
Hibbett remains cautious about the near-term outlook, given the ongoing economic uncertainties. However, the company expressed confidence in its long-term growth prospects, citing its strong brand recognition, loyal customer base, and strategic initiatives.
Hibbett plans to continue investing in its omnichannel capabilities, expanding its product offerings, and enhancing its customer experience to drive future growth.
Overall, Hibbett’s second quarter results reflect the challenges faced by retailers in the current economic environment. However, the company’s half-year performance and long-term outlook suggest that it is well-positioned to navigate these headwinds and emerge stronger in the future..
