**Hibbett Sports’ Q2 Sales Decline on Comp Drops; H1 Sales Marginally Increase**.
**Hibbett Sports,** a prominent sporting goods retailer, has reported a decline in its second-quarter sales primarily due to comparable store sales decreases. However, the company’s first-half sales witnessed a modest increase..
**Quarterly Performance**.
For the second quarter ended July 30, 2023, Hibbett Sports recorded a 5.1% decrease in net sales to $324.9 million, down from $342.2 million in the corresponding period last year. This decline was largely attributed to a 5.3% reduction in comparable store sales. The number of comparable stores remained unchanged at 952..
**Half-Yearly Performance**.
In the first half of fiscal 2023, Hibbett Sports’ net sales marginally increased by 1.3% to $700.1 million, compared to $691.3 million in the same period of the previous year. The rise was primarily driven by new store openings, partially offset by comparable store sales declines..
**Gross Margin and Expenses**.
The company’s gross margin for the second quarter contracted by 50 basis points to 30.6%, primarily due to higher markdowns and promotional activities. Operating expenses, including selling, general, and administrative (SG&A) expenses, increased by 5.9% to $83.3 million during the quarter..
**Inventories**.
Hibbett Sports reported a 3.9% increase in its inventory levels to $469.8 million at the end of the second quarter, aligning with the company’s strategy to ensure product availability and cater to evolving customer demands..
**Financial Position**.
As of July 30, 2023, the company had $554.7 million in cash and cash equivalents, down from $614.9 million at the end of the previous fiscal year. Hibbett Sports also maintained a healthy financial position with a debt-to-equity ratio of 40.7%..
**Executive Commentary**.
Jeff Rosenthal, President and CEO of Hibbett Sports, commented on the company’s performance, highlighting the challenges posed by the current retail environment:.
