Despite a 1.5% increase in its total sales for the first half of 2023, reaching $727.3 million, Hibbett saw a 0.7% decline in its comparable store sales during the same period. In Q2 alone, the company’s net sales decreased by 2.2% to $351.8 million, with comparable store sales dropping by 2.9%. The athletic footwear and apparel retailer attributed the decline, in part, to increased competition from national chains like Foot Locker and Dick’s Sporting Goods..
In the second quarter, comparable store sales for Hibbett’s Sports division decreased by 3.0%, while comparable store sales for its City Gear division decreased by 2.7%. The company noted that although it faced tough comparisons to last year’s strong Q2 performance, its market share remained stable..
Net income for Q2 was $20.9 million, compared to $21.8 million in the same quarter of 2022, representing a slight decrease of 4.1%. The company’s diluted EPS also declined from $1.25 to $1.19 per share..
Hibbett’s CEO, Jeff Rosenthal, acknowledged the challenging retail environment and the impact of macroeconomic factors on consumer spending. He emphasized the company’s focus on inventory management, disciplined expense control, and customer service to navigate these challenges..
The company remained optimistic about its long-term prospects, highlighting its initiatives to enhance its omnichannel presence and expand its product offerings. Hibbett also noted the recent acquisition of Shoe Carnival, Inc., which it believes will strengthen its position in the athletic footwear and accessories market..
Despite the Q2 sales decline, the company reiterated its guidance for the full year, expecting total sales growth in the range of 0% to 2% and comparable store sales growth in the range of -2% to 0%..
Overall, Hibbett’s Q2 results reflect the competitive nature of the athletic footwear and apparel market, particularly with the resurgence of national chains. While the company faces challenges in driving comparable store sales growth, it remains committed to optimizing its operations and exploring new growth opportunities..
