Hibbett Sports, Inc. issued a warning last week that the small market operator will miss its sales and earnings guidance for the second quarter. While the retailer did not provide specific details on the miss, Sports Executive Weekly assumes that a mix of weakness in urban formats in general, along with a weakened Wal-Mart, may have some bearing on the results. Hibbett Chairman and CEO Mickey Newsome said that, “strong results in branded apparel and accessories were offset by weakness in pro-licensed merchandise and the lack of compelling footwear product” to energize their consumer.
HIBB now expects to report diluted EPS of approximately 14 cents to 17 cents for the fiscal second quarter, compared with 12 cents in the prior-year period. Comparable store sales, measured on a fiscal basis, are expected to increase 2.6% versus last years second quarter, while comps will be down 5.6% on a comparable store, comparable week basis. The retailer had previously forecast diluted EPS in the 20 cents to 24 cents range for Q2, while the fiscal comp store sales increase was projected in the high-single-digits and comp store, comp week was expected to be flat to up 2% for the period.
Mr. Newsome also said that a “very preliminary read on third quarter trends have improved.”