Hibbett Sports posts a massive drop in Q3 net income to US $ 7.6mn

Hibbett Sports Inc., an American athletic speciality retailer, has released its financial report for the third quarter ended October 28, 2017.

The apparel retailer’s net income dropped to US $ 7.6 million during the third quarter compared to US $ 14.6 million in the corresponding quarter last fiscal.

In the press statement issued, Hibbett Sports has claimed that the promotions and discount strategies it implements to improve its inventory status consequently affected its gross margin.

The company’s gross margin was 32 per cent compared to 35.4 per cent in the same quarter last year.

Comparable store sales also dropped 1.3 per cent.

However, the company’s net sales during the quarter increased by 0.4 per cent to US $ 237.8 million as against US $ 237 million in the corresponding quarter of the year 2016.

Hibbett Sports’ store operating, selling and administrative expenditures stood at 24.4 per cent of the total net sales for the reporting quarter as against 23.6 per cent of the net sales last year.

Marketing and operation cost involved in launching and expanding the e-commerce business resulted in an increase in operating, selling and administrative expenses for the company.

During the reporting quarter, Hibbett Sports opened 13 new outlets and closed 11 underperforming stores. Currently, it operates a total of 1,082 in 35 states across the US.