**Hibbett Sports (HIBB)** reported a 5.6% decrease in second-quarter sales, with the athletic-wear retailer missing Wall Street’s expectations.
The company said on Thursday that its net sales for the second quarter ended July 29, 2023, came in at $341.3 million, down from $360.4 million in the same period last year.
Analysts polled by Refinitiv had estimated sales of $344.05 million.
Hibbett Sports also reported a 2.6% decline in comparable sales for the second quarter, as comps fell by 2.4% in brick-and-mortar stores and 3.1% in e-commerce.
According to the company, the sales decline was largely due to lower demand for footwear and apparel.
The athletic retailer’s gross margin widened by 20 basis points to 35.7% in the second quarter, helped by more full-price selling and lower promotional activity.
However, Hibbett Sports saw expenses rise, with occupancy costs increasing by 1.2%, distribution and fulfillment expenses up by 15.5%, and selling, general and administrative expenses climbing by 3.3%.
As a result, the company’s net income fell by 28.7% to $18.3 million in the second quarter, down from $25.8 million in the prior-year period.
Diluted earnings per share (EPS) declined by 32.7% to 78 cents, missing analysts’ estimates of 84 cents per share.
Despite the second-quarter sales decline, Hibbett Sports said its sales for the first half of fiscal 2023 inched up by 0.7% to $752.6 million, compared to $746.7 million in the same period last year.
The company’s first-half comparable sales also rose by 1.2%, driven by a 1.4% increase in brick-and-mortar comps and a 0.5% lift in e-commerce comps.
Looking ahead, Hibbett Sports said it expects comparable sales to range between down 4% and down 7% for the third quarter, with the full-year comparable sales expected to be down between 2% and 4%.
The company also said it expects full-year net sales to be between $1.54 billion and $1.57 billion, with EPS in the range of $4.00 to $4.40.
Analysts are currently expecting full-year sales of $1.55 billion and EPS of $4.23.
Shares of Hibbett Sports, which have declined by about 15% so far in 2023, were down by 10.8% in pre-market trading on Thursday..
Hibbett’s Q2 Sales Miss on Comps Drop, H1 Sales Inch Forward
