Hibbett Sporting Goods has revised its sales and earnings expectations for the second fiscal quarter, 2004. The Company now expects to report a comparable store sales increase of 2% to 3% for the second quarter and earnings per share in the range of $0.13 to $0.15 per diluted share compared with previous expectations of comparable store sales increases of 5% to 6% and earnings per share in the range of $0.18 to $0.20 per diluted share. The Company plans to provide updated guidance for fiscal 2004, as well as its guidance for the third quarter, when it reports complete results for the second quarter on August 19, 2004.
Commenting on the announcement, Mickey Newsome, President and Chief Executive Officer, stated, “Although we started off the quarter with sales above our expectations, for the last few weeks we have experienced a slowdown in two areas – licensed apparel and fitness equipment. Sales in footwear and team equipment, however, have continued to post strong results. As we discussed when we reported first quarter earnings in May, we had planned for licensed apparel, particularly pro-licensed apparel, to soften starting in the third quarter. Unfortunately, the momentum in this category, including college-licensed apparel, has slowed down more dramatically and sooner than anticipated. Additionally, our comparable-store sales were impacted by rainy weather in June. We have responded with more aggressive markdowns in both licensed apparel and fitness equipment. Together with the shift in sales away from apparel to footwear, these markdowns are expected to result in lower overall margins for the quarter.”