Hibbett missed on earnings views but raised full-year same-store sales guidance Thursday. Shares shot up during trading action. This comes after sporting goods rival Dick's Sporting Goods also increased its outlook Tuesday. The Pennsylvania-based retailer seems to have recovered some ground since slashing forecasts in May, amid rising costs. DKS stock also climbed Thursday.
Hibbett Earnings
Estimates: Wall Street forecast EPS of $2.14 and $387 million in total sales. Same-store sales were expected to drop 7.2%.
Results: Hibbett reported that earnings fell 35% to $1.86 per share. Revenue dropped 6% to $393 million in the fiscal-year 2023 second quarter. Same-store sales declined 9.2%.
Outlook: The company raised its full-year guidance. Total net sales are expected to increase in the low-single digit range with same-store sales expected to be in the range of "flat to positive low-single digits." Hibbett reaffirmed its earnings guidance and expects full-year EPS in the range of $9.75 - $10.50.
The company added that ongoing supply chain disruptions, higher freight and transportation costs, inflation and a tight labor market are risks in fiscal year 2023.
HIBB stock soared 5.9% during Thursday's stock market trading. The stock shed 5.46% on Wednesday. Shares are pausing above their 200-day moving average. Hibbett cleared a 54.08 buy point earlier this month from a bottoming base that formed entirely below the 200-day.
HIBB stock has an 64 Composite Rating out of 99. It has a 67 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock's performance over the last 52 weeks holds up against all the other stocks in IBD's database. The EPS rating is 69.
Dick's Sporting Goods Earnings; DKS Stock
Estimates: Wall Street forecast earnings dropping 29% to $3.59 per share in the second quarter. Revenue was expected to fall 6% to $3 billion. Same-store sales were seen falling 7%.
Results: Dick's reported earnings down 27% to $3.68 per in the second quarter. Total sales fell 5% to $3.1 billion while same-store sales declined 5.1%.
Outlook: The company narrowed its full-year same-store sales guidance to a range of -6% to -2%, vs. the prior -8% to -2% target range. It is also now raising full-year EPS guidance slightly to $10-$12 per share.
In May, after reporting first-quarter results, Dick's Sporting Goods slashed its full-year earnings guidance amid weak economic conditions. Management cut its EPS target to between $9.15 and $11.70, down from $11.70 - $13.10.
On Tuesday, the outlook had to some degree stabilized.
"The Dick's Sporting Goods consumer has held up quite well. Our inventory is healthy and well-positioned, and we are excited about our assortment for the back-to-school season," CEO Lauren Hobart said Tuesday in a statement.
DKS stock jumped 2% Thursday. Dick's shares have climbed steadily off a late-May low, overtaking both their 10-week and 40-week moving averages.
In the first quarter, Dick's earnings fell 25% to $2.85 per share. Net sales sank 7% to $2.7 billion. Same-store sales dropped 8.4%.
Dick's blamed "evolving macroeconomic conditions" and reported inventory levels at the end of Q1 were up 40% vs. a year earlier.
DKS stock has an 87 Composite Rating out of 99. It has a 92 Relative Strength Rating. The EPS rating is 86.
Retail Earnings
Dick's and Hibbett are the latest retailers to report earnings in recent weeks, giving investors clues to how consumers' spending habits are adapting to inflation pressures.
Last week, Walmart topped earnings estimates while Target reported mixed Q2 financial results, missing on earnings but meeting revenue predictions. Both reaffirmed guidance for the rest of the year.
Off-price specialist TJX missed on revenue, while both Ross Stores and Kohl's cut guidance on Thursday. The industry broadly reflected a consumer pivot to essentials, as prices generally pressed higher.
BJ's Wholesale Club also beat earnings views Thursday, as the discount giant shrugged off concerns that inflation would keep consumers away.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
