Stellar fourth-quarter results
Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019’s fourth quarter, which ended on February 2. Hibbett Sports’ fourth-quarter sales grew 14.7% to $305.96 million, driven by higher same-store sales, a contribution of $49.1 million from the City Gear acquisition, and strong e-commerce sales. Analysts forecasted sales of $273.70 million.
Hibbett Sports’ e-commerce sales grew 60% and accounted for 10.6% of overall sales in the fourth quarter. The company’s omnichannel initiatives are driving significant improvement in its web traffic. Hibbett Sports has been attracting more online purchases with facilities like “buy online, pick up in store” and by enhancing its mobile app.
The company’s fourth-quarter same-store sales grew 3.8% against analysts’ expectation of flat same-store sales growth.
Net sales for rival Dick’s Sporting Goods (DKS) declined 6.5% to $2.49 billion in the comparable quarter, and same-store sales declined 3.7% on an unshifted basis. Dick’s Sporting Goods’ top line was adversely affected by weak sales in the hunting and electronics businesses.
Hibbett Sports’ adjusted EPS grew 29.5% to $0.57 in fiscal 2019’s fourth quarter and easily beat analysts’ forecast of $0.38. Hibbett Sports’ bottom-line growth was driven by higher sales, lower taxes, and a lower share count due to share buybacks.
Hibbett Sports also announced that its president and CEO, Jeff Rosenthal, will retire once the company finds his replacement. Rosenthal has been serving as Hibbett Sports’ CEO and president since March 2010 and has been associated with the company for over 21 years.
We’ll look at the company’s fiscal 2020 outlook in the next part of this series.