Hibbett Q1 Profits Dip on Weather and Port Issues

Hibbett Sports Inc. reported a decline in profits and comparable-store sales, while earnings per diluted share remained flat year-over-year in the first quarter, ended May 2, 2015.

The Birmingham, Ala.-based sporting-goods retailer’s performance also fell short of market watchers’ expectations, though the company posted 3 percent gains in net sales. Management attributed much of the earnings slump to weather and port delays.

 Net Income: The company’s net income fell 3.5 percent year-over-year, to $27.4 million, compared with profits of $28.4 million during last year’s first quarter.

EPS: Earnings per diluted share remained flat year-over-year at $1.09.

Net Revenue: Hibbett’s net revenues rose 3 percent year-over-year, to $270 million, compared with revenues of $262 million in the year-ago quarter.

Hit, Miss or Beat: The company’s performance missed Wall Street’s predictions for both revenues and earnings per diluted share. Analysts polled by Yahoo Finance had predicted revenues of $274.1 million and EPS of $1.13.

Executive Insights: “We were disappointed with our comp-store sales during the first quarter and earnings results. There are many outside factors that affected our comp sales, such as port delays, tax shifts and [store closures] due to weather issues.” – CEO Jeff Rosenthal, in a May 22 conference call

“We’re very disappointed in our results for February, which had a significant impact on our full-quarter results. Weather was certainly a factor and negatively impacted many categories, such as spring apparel and spring sports, like baseball…. The labor issues on the West Coast had a significant impact [as well].” — Jared Briskin, SVP & chief merchant, in the May 22 conference call

Access exclusive content