Hibbett Sports’ net income climbs to £19.05 million in the third quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 20, 2020
  • Hibbett Sports’ net income climbs to £19.05 million in the third quarter.
  • The retailer reports a 20% year over year growth in Q3 sales.
  • Hibbett Sports forecasts up to 83 pence of EPS for the fourth quarter.

Hibbett Sports Inc. (NASDAQ: HIBB) reported its financial results for the fiscal third quarter on Friday that blew pasts Wall Street estimates. The company also raised its guidance for the full year.

Hibbett said that its net income in the third quarter printed at £19.05 million that translates to £1.11 per share. In the same quarter last year, its net income was capped at a sharply lower £1.73 million or 9.79 pence per share. In the prior quarter (Q2), Hibbett had revealed £30.42 million of net income, as per the report published in August.

Hibbett Sports’ Q3 financial results versus analysts’ estimates

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On an adjusted basis, the full-line sporting goods retailer earned £1.09 per share in Q3 that topped analysts’ estimates of 33.88 pence per share, according to FactSet. In separate news from the U.S., sportswear and footwear retailer, Foot Locker, also published its quarterly earnings report on Friday.

In terms of sales, the Birmingham-based company saw a 20% year over year growth in the recent quarter to £249.52 million in the third quarter versus the year-ago figure of £207.43 million. FactSet Consensus for revenue in Q3 stood at £215.33 million.

Hibbett Sports also said on Friday that comparable-store sales jumped 13.2% in the recent quarter versus a 10% annualised growth expected. Digital sales registered a year over year growth of 50.7% in Q3 and made up 13.2% of the total quarterly sales. In comparison, e-commerce sales accounted for 10.5% of total sales in the same quarter last year.

Hibbett Sports’ guidance for the fiscal fourth quarter

For the fiscal fourth quarter, the retailer is now expecting a close to 10% growth in its same-store sales in the fourth quarter. It forecasts its Q4 per-share earnings to fall in the range of 75 pence per share to 83 pence per share. FactSet Consensus, on the other hand, stands at a much lower 45.17 pence per share.

Hibbett Sports opened about 10% up on Friday but lost almost its entire intraday gain in the later hours. The stock is now exchanging hands at £32.32 per share versus a sharply lower £5.98 per share in late March when the Coronavirus pandemic pushed its stores into temporarily shutting down for the public.

At the start of the year, Hibbett had a per-share price of £20.76. The retailer is currently valued at £540 million and has a price to earnings ratio of 22.50.

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