Hibbett Sports Inc., an athletic specialty retailer, has provided preliminary results for the first quarter ended April 29, 2017.
During the quarter, comparable store sales are expected to decrease by approximately 4-5 per cent. The decline in sales, along with additional clearance markdowns, is expected to result in earnings per diluted share in the range of US $ 0.94-0.97. For the full year, earnings per diluted share are expected to be in the range of US $ 2.35-2.55, which assumes additional markdown pressure going forward to liquidate aged inventory. This compares with previous full-year guidance of earnings per diluted share in the range of US $ 2.65-2.85.
Jeff Rosenthal, President and Chief Executive Officer, stated, “We experienced a slow start to the quarter with a double-digit decline in comparable store sales in February, most of which we believe was attributable to a delay in tax refunds. Comparable store sales improved significantly in March to the positive mid-single digit range, but did not offset the decline in February. So far in April, we are very pleased with continued comparable store sales in the mid-single digit range, driven by strength in footwear and the successful rollout of our store-to-store/home initiative. Looking forward, we believe that our store-to-store/home capability and the launch of our e-commerce initiative in the third quarter will help drive comparable store sales. Simultaneously in the first quarter, we increased our emphasis on expense controls, which we believe will help to maximize profitability.”
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Hibbett Sports operates athletic specialty stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. The Company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centres and enclosed malls.
