**Hibbett Sports’ second-quarter sales decline on comps drop, H1 sales inch forward**.
Department store and sporting goods retailer Hibbett Sports Inc. reported a second-quarter revenue loss and a small increase in its first-half sales on Wednesday. For the three months ended July 30, 2023, the Birmingham, Alabama-based company’s sales fell by 0.4% to $338.9 million compared to $340.3 million during the Q2 2022. Meanwhile, its comparable store sales decreased by 1.6% during the quarter. .
In a statement, Hibbett President and CEO Mike Longo attributed the sales decline to the impact of the ongoing COVID-19 pandemic and macroeconomic headwinds such as inflation and supply chain disruptions. He also noted that the company faces tough comparisons to last year’s Q2, when stimulus checks and pent-up demand had driven strong sales..
The retailer’s net income for the second quarter also declined to $24.8 million, down by 31.6%, from the $36.1 million earned in Q2 2022. Diluted earnings per share fell to $1.70 from $2.48 during the prior-year quarter. The net income loss was primarily caused by the sales decline and an increase in the cost of goods sold..
Looking at the first half of the year, Hibbett Sports’ sales ticked up by a modest 0.9% to $682.7 million, compared to $676.8 million in the first half of 2022. The company’s comparable store sales increased by a slight 0.2% during the six-month period..
Gross profit margin for the first half of 2023 came in at 33.3%, compared to 34.4% during the same period last year, impacted by higher markdowns taken during the quarter..
Despite the headwinds, Longo expressed optimism about the company’s future prospects, stating that Hibbett has taken steps to manage costs and improve profitability. .
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