Hibbett Sports (NASDAQ:HIBB) posted a stronger-than-expected 22% jump in fourth-quarter earnings on Friday as the sporting-goods retailer enjoyed a 4.9% rise in same-store sales.
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While Hibbett’s results beat Wall Street’s expectations, the company revealed a full-year earnings guidance that would miss estimates.
The Birmingham, Ala.-based company said it earned $19.4 million, or 73 cents a share, last quarter, compared with a profit of $15.8 million, or 59 cents a share, a year earlier. Analysts had called for EPS of 71 cents.
Revenue rose 14% to $217.4 million, narrowly topping the Street’s view of $216.9 million. Gross margins expanded to 36.1% from 35.8%. Same-store sales climbed 4.9%.
“The holiday season was strong due to solid performance in footwear, apparel, and accessories,” Jeff Rosenthal said in a statement. “We are well positioned to continue our growth and are very excited about the investments being made in the business to ensure our future success."
Looking ahead, Hibbett projected full-year EPS of $2.85 to $3.05. The midpoint of that view, $2.95, would trail consensus calls from analysts for $3.02. Same-store sales are seen rising in the low-to mid-single digit range.
Management also expects to open 65 to 70 new stores during the fiscal year and expand about 18 high-performing stores, while closing 15 to 20 stores.
Shares of Hibbett, which were inactive Friday morning, have underperformed the broader markets, rising less than 2% so far this year.