Retail Insight Network

Daily Newsletter

29 August 2023

Daily Newsletter

Hibbett’s net sales declines by 4.6% in Q2 FY24

The retailer expects operating profit percentage in the range of 7.4% to 7.8% in FY24.

Athletic-inspired fashion retailer Hibbett has reported net sales of $374.9m in second quarter (Q2) of fiscal year 2024 (FY24), down 4.6% from $392.8m in the same period of fiscal year 2023 (FY23).

The company’s comparable sales declined 7.3% over the quarter, and its bricks-and-mortar comparable sales and e-commerce sales declined 7.7% and 5.2% respectively on a year-over-year (YoY) basis.

For the 13-weeks ended 29 July 2023, net income of Hibbett was $10.9m compared with $24.7m in the prior year’s same quarter.

Its diluted earnings per share for the latest quarter were $0.85, against $1.86 in Q2 FY23.

The company’s gross margin was 32.8% of net sales in Q2 FY24, from 34.4% of net sales in the same period a year ago.

Hibbett reported store operating, selling and administrative (SG&A) expenses of $94.87m, which is 25.3% of net sales in the latest quarter.

The company’s operating income for Q2FY24 was $16.02m, down from $32.81m in Q2 FY23.

Hibbett opened five net new stores in Q2 FY24, taking its total store count to 1,148 in 36 states.

Hibbett president and chief executive officer, Mike Longo said: “We are pleased with our performance for the second quarter of Fiscal 2024. Our business model focuses on providing an exceptional consumer experience in underserved markets and produced solid financial results despite a challenging retail environment.

“Our sales for the second quarter were supported by a strong start to the busy back-to-school season and we also benefited from a positive customer response to new product launches during the quarter. Our strong relationships with valued brand partners continue to provide us the ability to offer a compelling product assortment and as a result, we believe we continue to gain market share.”

In the year to date, net sales of Hibbett increased by 1.7% to $830.37m, and its comparable sales declined 1.4% during the period.

Its net income for the 26-weeks period was $46.77m, against $64.06m in the prior year period.

For full year 2024, the retailer expects net sales to grow from flat to up 2% and operating profit percentage in the range of 7.4% to 7.8%.

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.