Hibbett Inc. said fourth-quarter results will come in below guidance due to lower traffic and transaction counts in the back half of the quarter.
In a business update on Friday, Hibbett president and CEO Mike Longo said that ongoing supply chain challenges, inflation concerns and increased COVID-19 cases were the root of the cause of a lower-than-expected quarter.
Despite these headwinds, Longo said that he remains “confident in the resilience” of the company’s omni-channel business model and believes the factors negatively impacting traffic and transaction volume will begin to subside in the coming months. “Our company is much better equipped to manage these challenges than it was prior to the pandemic. As a result, our outlook remains positive, and we expect to continue delivering strong sales and profit performance in the years to come,” Longo said.
Net sales in the fourth quarter of 2022 increased 1.7% to $383.3 million compared with $376.8 million in the same period last year, and reflected a two-year increase of 22.5% in comparison to the $313.0 million for the same quarter in 2020. Comp sales in the quarter decreased 1.0% which is below the retailer’s guidance of positive high single-digit comp sales.
Hibbett also noted that brick and mortar comp sales decreased 1.6% and e-commerce comparable sales increased 1.8% in the fourth quarter. E-commerce represented 17.1% of total net sales, Hibbett noted.
As for its full year fiscal 2022 results, Hibbett reported net sales increased 19.1% to $1.69 billion compared with $1.42 billion in the same period last year, and increased 42.8% over two years from $1.18 billion in 2020. Comp sales increased 17.4% for the year, and brick and mortar comp sales were up 21.4% and were nominally offset by a decline in e-commerce sales of 1.6%. E-commerce sales represented 13.8% of total sales in fiscal 2022, compared to 16.7% of total sales in 2021.
Looking ahead, Hibbett expects ongoing supply chain disruption, a lack of stimulus and unemployment benefits, inflation, wage pressures, and a more cautious consumer to continue to impact its business going into fiscal 2023. Hibbett said it expects net sales to be relatively flat in fiscal 2023 compared to its fiscal 2022 results. This implies comp sales in the negative low single digits.