Hibbett Sports (HIBB) Tops Q2 EPS by $1.80, Revenues Beat, Comp. Sales Up 79.2%; Provides 2H21 EPS Outlook Range of $0.85/Sh-$1.00/Sh

(Updated - August 28, 2020 6:36 AM EDT)

Hibbett Sports (NASDAQ: HIBB) reported Q2 EPS of $2.95, $1.80 better than the analyst estimate of $1.15. Revenue for the quarter came in at $441.6 million versus the consensus estimate of $349.58 million.

Comparable Sales Increase 79.2%; YTD Comparable Sales Increase 22.2%
Brick and Mortar Comparable Sales Increase 65.2%
E-Commerce Sales Increase 212.2%
GAAP Net Income Per Diluted Share of $2.38
Adjusted Earnings Per Diluted Share of $2.95

BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Hibbett Sports, Inc. (Nasdaq/GS: HIBB), an athletic-inspired fashion retailer, today provided financial results for its second quarter ended August 1, 2020, and business updates.

Mike Longo, President and Chief Executive Officer, stated, “Our business continued to generate significant momentum in a challenging business environment. Our resilient business model and dedicated team members delivered on our commitment of superior customer service with a compelling merchandise assortment. Our nearly 80% comparable sales results were driven by multiple factors, including pent-up consumer demand, temporary and permanent competitor store closures and government stimulus money. We believe that these circumstances yielded increased traffic to our stores and website and provided new customers the opportunity to experience our trademark service. As a result, we were able to deliver these exceptional results.”

Mr. Longo continued, “We believe our partnerships with our vendors have never been stronger. Our strategic focus on providing services to the underserved consumer is now more valued than ever by our partners.”

Finally, Mr. Longo added, “I am extremely proud of the Hibbett team and the strong results they were able to deliver. With the strength of our team and the changes to the competitive landscape, we are optimistic about our ability to continue to capitalize on existing and prospective opportunities in the second half of this fiscal year. We continue to take necessary steps to safeguard our customers and team members while providing a positive return for our shareholders. The Hibbett and City Gear brands are well positioned with our customers, and we are hopeful the momentum we have built is sustainable.”

Fiscal 2021 Outlook

Due to the ongoing uncertainty from the COVID-19 pandemic, the recent expiration of enhanced unemployment benefits, the timing and length of the back-to-school season and the potential for additional government stimulus measures, we are providing limited guidance for the second half of Fiscal 2021.

Our expected financial results for the second half of Fiscal 2021 are influenced by several factors:

• We believe the increase in traffic into our stores in the second quarter was driven by pent-up demand, temporary closures of competitors and government stimulus payments. A significant portion of this traffic was the result of new customers. We expect to retain many of these customers which will drive sales growth.
• Permanent closures of competitors, which we believe is now beginning to take effect, will also drive sales volume and traffic increases as these competitors’ liquidation sales conclude.
• Accelerating consumer adoption of e-commerce, which we believe is likely a permanent change, will continue to benefit our omni-channel business.
• Our strong vendor relationships allow us to meet customer demand for fashion inspired athletic footwear, apparel and accessories both in-store and online.

Based on the considerations above, we forecast the following GAAP results for the second half of the Fiscal 2021 in comparison to the second half of Fiscal 2020:

• Comparable sales increases in the mid-single digits;
• Gross margin improvement of approximately 50 to 70 basis points;
• SG&A leverage of approximately 70 to 90 basis points; and
• Diluted earnings per share in the range of $0.85 to $1.00, assuming an effective tax rate of approximately 26.0% and a diluted share count of approximately 16.9 million.

Additionally, non-GAAP adjustments in the second half of Fiscal 2021 are not expected to be material.

For earnings history and earnings-related data on Hibbett Sports (HIBB) click here.

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