Hibbett Sports capitalizes on coronavirus edge, posts 75% spike in sales
Birmingham, Alabama-based sportswear and equipment retailer Hibbett Sports, Inc., which made the decision to keep its stores open where possible when the Covid-19 pandemic hit the U.S., reported an unprecedented 74.9% rise in Q2 sales on Friday.
In the second quarter ended August 1, 2020, the company achieved net sales of $441.6 million, up from $252.4 million in the prior-year period. Comparable sales at the retailer increased 79.2%, with brick-and-mortar comparable sales rising 65.2% and e-commerce sales shooting up 212.2%. E-commerce sales represented 15.7% of Hibbett’s total sales in the quarter, compared to 8.6% in the same period in the previous year.
The retailer attributed its strong sales performance to a variety of factors related to the coronavirus crisis, including pent-up consumer demand and the temporary and permanent store closures implemented by its competitors in response to the pandemic.
“We believe that these circumstances yielded increased traffic to our stores and website and provided new customers the opportunity to experience our trademark service,” explained Hibbett president and CEO Mike Longo in a release. “As a result, we were able to deliver these exceptional results.”
The company’s net income for the quarter totaled $40.4 million, or $2.38 per diluted share, up from a net loss of $8.8 million, or $0.49 per share, in the prior-year period.
Taking into account the first quarter, Hibbett’s net sales increased 19.4% to $711.4 million in the first six months of fiscal 2021, compared to $595.7 million in the first half of the previous year.
Comparable sales for the period rose 22.2%, reflecting an 8.9% rise in brick-and-mortar comparable sales and a 150.9% increase in e-commerce revenues, which represented 18.2% of total sales, compared to 8.4% in the prior-year period.
First-half net income came to $25.1 million, or $1.50 per diluted share, compared to $19.1 million, or $1.05 per diluted share, in the same six-month period in the previous year.
Having opened three stores and closed eight during the second quarter, the company currently operates a total of 1,077 locations under its Hibbett and City Gear banners in 35 states.
Looking to the future, the company expects to see mid-single-digit increases in its comparable sales in the second half of fiscal 2021, while diluted earnings per share for the period are predicted to be in the range of $0.85 to $1.00.
“With the strength of our team and the changes to the competitive landscape, we are optimistic about our ability to continue to capitalize on existing and prospective opportunities in the second half of this fiscal year,” concluded Longo. “The Hibbett and City Gear brands are well positioned with our customers, and we are hopeful the momentum we have built is sustainable.”
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