Hibbett Sports raised its profit guidance for the year and noted that footwear sales were a standout category in the third quarter, mirroring a similar pattern from Q2.
The sporting goods chain reported a decrease in net sales in Q3 of 0.3 percent to $431.9 million. Comparable sales decreased 2.7 percent. Net income was $25.5 million, or $2.05 per diluted share, compared with the prior year’s net income of $25.6 million, or $1.94 per diluted share.
Hibbett president and CEO Mike Longo said in a statement that Q3 results were driven by a robust back-to-school season, solid footwear sales and a regular launch cadence of on-trend product.
“Our footwear sales, especially with our popular premium brands, have continued to be a key driver of our ongoing success,” said Hibbett president and CEO Mike Longo in a statement. “We believe our strong relationships with valued brand partners are a distinct competitive advantage for Hibbett, with a favorable product mix that appeals to fashion-conscious shoppers.”
Longo also called out the launch of Hibbett’s connected partnership with Nike, which aims to provide Hibbett shoppers with a host of new benefits and retail experiences when they purchase Nike and Jordan products at a Hibbett store or online. The retailer has maintained its business with the Swoosh, which has dialed back its business with other partners.
“This further reinforces our valued partnership with Nike and confirms the strength of our relationship,” Longo said. “This transformative partnership will support our loyalty member customers across all retail channels, providing exclusive shopping experiences, personalized content, and early access to Nike and Jordan member products.”
Looking ahead, Hibbett said its product launches and diminishing supply chain issues have put it in a strong position to win big during the holiday season.
Hibbett upgraded its full year profit outlook and expects diluted EPS to be in the range of $8.00 to $8.30. Total sales for the year are still expected to be between flat and up 2 percent.
