Hibbett Sports Inc. said it expects earnings to slump between 28 to 30 percent in the fourth quarter, well below guidance, as same-store sales slid 2.2 percent.
Based on preliminary fourth quarter results, earnings per diluted share for the 13-week period ended January 28 are expected to be in the range of 53 cents to 55 cents compared with 76 cents reported for the 13-week period ended January 30, 2016. When it reported third-quarter earnings on Nov. 18, the company guided earnings to be in the range of 64 to 70 cents a share.
Additionally, the company has established preliminary Fiscal 2018 guidance of earnings per diluted share in the range of $2.65 to $2.85, which includes continued investments in its Store-to-Home and e-commerce initiatives and a positive impact of approximately 10 cents per diluted share for the 53rd week. Comparable store sales are expected to be in the flat to low-single digit range.
Net sales for the 13-week period ended January 28, 2017 increased 0.5 percent to $246.9 million compared with $245.7 million for the 13-week period ended January 30, 2016.
Jeff Rosenthal, president and chief executive officer, stated, “We were disappointed with sales in the fourth quarter. Weaker traffic during the holiday season and lower than expected sales in apparel and equipment led to a comparable store sales decline. We continued to experience strength in our footwear business, which was a direct result of our improved assortments and in-stocks by store types. As traffic declined and sales softened, we became more promotional in order to drive sales and manage inventory, which had a negative impact on gross margin.”
Hibbett plans to issue its fourth quarter earnings release before the market opens on March 10.
Image courtesy Hibbett
