Hibbett Sports reports 22% boost in comps, raises earnings prevision

By

Robin Driver

Published
Feb 12, 2021

Birmingham, Alabama-based sportswear retailer Hibbett Sports, Inc. published its preliminary Q4 results on Wednesday, reporting a 21.9% rise in comparable sales, increasing its quarterly earnings predictions, and providing a first look at its guidance for the new fiscal year.

 
The growth in the company’s comparable sales in the fourth quarter ended January 30, 2021, was significantly stronger than expected. Previously, the company had predicted an increase in the high-single digits to low-double digits.
 
Thanks to this progress, the retailer said that it now expects its quarterly diluted earnings per share (EPS) to be in the range of $1.30 to $1.40, up from the company’s prior outlook of between $1.00 and $1.10.

“By continuing to execute on our commitment to provide a compelling merchandise assortment through superior customer service and a best-in-class omni-channel platform, we exceeded our previously disclosed outlook for the fourth quarter,” commented Hibbett president and CEO Mike Longo in a release.
 
“New customer retention, the ability to effectively manage available in-demand footwear, apparel and accessories, and incremental stimulus payments contributed to the strong performance in the quarter,” he added.
 
Hibbett’s full-year comparable sales rose 22.2%, and the company expects to report annual EPS in the range of $4.30 to 44.40.
 
Looking forward, the retailer revealed that its current forecast for fiscal 2022 predicts a low-single-digit decrease or a low-single-digit increase in annual comparable sales. Diluted EPS for the year is expected to be in the range of $5.00 to $5.50.
 
This outlook is based on the fact that, due to pent-up demand, Hibbett managed to attract new customers during the Covid-19 pandemic. These new customers frequently made repeat purchases, and the retailer hopes to continue attracting and retaining consumers moving forward.
 
Hibbett also highlighted the strength of its vendor relationships and its solid omnichannel business, which, the company claims, will be to its benefit as consumer adoption of e-commerce continues to accelerate.
 
In addition, the retailer cited a number of new initiatives that it is implementing, including improvements in its in-store experience and sales culture, as well as supply chain enhancements that have led to increased speed to market.
 
Hibbett intends to report its full fourth-quarter and annual results on March 5, 2021.