Hibbett Sports sales jump 20% in third quarter
Sports apparel, footwear and equipment retailer Hibbett Sports, Inc. has reported $331.4 million in Q3 sales, up 20.3% from $275.5 million in the prior-year period, with progress in omnichannel providing a boost to the company’s continued strength.
In the third quarter ended October 31, 2020, brick-and-mortar sales at the company rose 17.5% year over year, while e-commerce sales increased 50.7%, representing 13.2% of total revenues, compared to 10.5% in the same period in the previous year. Overall, comparable sales for the quarter rose 21.2%.
According to Hibbett, this increase in revenues was related to continued strength in omnichannel adoption and improved new customer retention. The company, which made the decision to keep its stores open where possible when the Covid-19 pandemic hit the U.S. earlier this year, also benefitted from the market disruption caused by the health crisis.
Quarterly net income at the retailer totaled $25.3 million, or $1.47 per diluted share, increasing from $2.3 million, or $0.13 per diluted share, in the prior-year period.
“Our business continues to operate from a position of strength despite ongoing challenges in the current business environment,” said Hibbett Sports president and CEO Mike Longo in a release. “We believe our efforts to provide the underserved consumer with a compelling assortment of attractive products is not only valued by our loyal customers and strategic vendor partners, but it also continues to attract new customers to our stores and website.”
Year to date, Hibbett reported net sales of $1.04 billion, up 19.7% from $871.2 million in the same nine-month period in the previous year, with brick-and-mortar sales rising 11.6% year over year and e-commerce revenues increasing 118.2%. Comparable sales for the period increased 22.0%.
Net income for the first three quarters of the fiscal year was $50.3 million, or $2.98 per diluted share, compared to $21.3 million, or $1.18 per diluted share, in the prior-year period.
In light of its solid performance in the third quarter, Hibbett has updated its financial guidance for the fourth quarter. The company now anticipates that comparable sales will increase in the high-single to low-double digits in the period, while diluted earnings per share are expected to total between $1.00 and $1.10.
Over the course of the third quarter, Hibbett permanently closed five stores, finishing October with a network of 1,074 owned stores in 35 states.
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