BIRMINGHAM, Ala. - Hibbett, Inc. (NASDAQ:HIBB), a prominent athletic-inspired fashion retailer, reported its fourth quarter earnings, slightly surpassing Wall Street's expectations on earnings per share (EPS) but not meeting revenue forecasts.
For the quarter ending February 3, 2024, the company announced a diluted EPS of $2.55, a cent higher than the analyst estimate of $2.54. However, revenue for the quarter was reported at $466.6 million, falling below the consensus estimate of $476.61 million.
Following the announcement, the stock fell 12.36% in premarket trading.
President and CEO Mike Longo commented on the quarter's performance, noting, "We are pleased to report a solid financial performance for the fourth quarter of Fiscal 2024, as we continued to execute our strategy in a dynamic and challenging retail environment." He highlighted the company's record full fiscal year sales of $1.73 billion and the success of the Hibbett Rewards X Nike (NYSE:NKE) Membership loyalty program in driving sales growth across all retail channels.
The fourth quarter saw a 1.8% increase in net sales compared to the same period last year, with e-commerce sales growing by 6.9% year-over-year (YoY), now representing 18.9% of total net sales. However, comparable sales declined by 6.4% versus the prior year, with brick and mortar sales experiencing a sharper decline of 9.2%.
Looking ahead, Hibbett provided guidance for Fiscal 2025, anticipating total net sales to be flat to up approximately 2.0% compared to Fiscal 2024. Comparable sales are expected to be flat to down in the low-single digit range. The company plans to open approximately 45 to 50 new stores, with a focus on expanding the Hibbett and City Gear brands.
Longo remains optimistic about the future, stating, "As we look ahead to Fiscal 2025, we will continue to leverage our proven business model to meet customer demand and drive additional market share." He also emphasized the company's commitment to making significant investments in store footprint, customer-facing technologies, and back-office infrastructure to enhance value and profitability over the long term.
The company's financial position remains solid, ending the fourth quarter with $21.2 million in cash and cash equivalents and $45.3 million of debt outstanding. Inventory levels saw an 18.2% decrease compared to the previous year's fourth quarter, reflecting efficient inventory management.
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