| Yesterday | ||||
Susquehanna analyst Sam… Susquehanna analyst Sam Poser said to buy shares of Hibbett Sports following far better than expected Q3 results on the top and bottom lines and the lowest iQ3 inventory rate in seven years. He believes its results and execution during the pandemic are indicative of a bright future. Poser reiterated his Positive rating and $65 price target on Hibbett Sports shares. | ||||
Baird analyst Peter… Baird analyst Peter Benedict raised the firm's price target on Hibbett Sports to $48 from $35 and keeps a Neutral rating on the shares. The analyst said Q3 results were a blowout performance highlighted by broad-based comp strength. He noted positive commentary around new member acquisition and retention, as well as discrete opportunities to capture market share from struggling industry players. | ||||
| Friday | ||||
Baird analyst Peter… Baird analyst Peter Benedict raised the firm's price target on Hibbett Sports to $48 from $35 and keeps a Neutral rating on the shares. The company's Q3 marked a "blowout performance" with "broad-based" comp strength in digital and store channels and also robust flow-through with EBIT margin expanion of over 700bps, the analyst tells investors in a research note. Benedict further cites the management's commentary about Hibbett's new member acquisition and retention, as well as the company's "discrete opportunities to capture market share from struggling industry players". | ||||
Check out this morning's…
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Gross margin was 38.3% of… Gross margin was 38.3% of net sales for the 13-week period ended October 31, 2020, compared with 32.7% of net sales for the 13-week period ended November 2, 2019. The approximate 560 basis point increase was driven by higher sell through, a low promotional environment, a reduction in inventory valuation reserves and leverage of store occupancy expenses. These impacts were slightly offset by a higher mix of e-commerce sales, which carries a lower margin due to incremental shipping costs. Excluding adjustments to inventory valuation reserves in the current quarter, non-GAAP gross margin was 38.1% compared to non-GAAP gross margin of 32.4% in the prior year. | ||||
E-commerce sales grew by… E-commerce sales grew by 50.7% and represented 13.2% of total net sales for the third quarter compared to 10.5% in the prior year third quarter. "We believe the increase in overall sales was positively impacted by continued strength in omni-channel adoption, improved new customer retention, market disruption, and availability of in-demand product, which collectively helped increase the revenue per transaction in the quarter." | |
Mike Longo, President and… Mike Longo, President and CEO, stated, "Our business continues to operate from a position of strength despite ongoing challenges in the current business environment. Superior customer service delivered by our dedicated team members and a best-in-class omni-channel platform contributed to significant revenue and earnings growth in the quarter. Our third quarter comparable sales growth of 21.2% was driven by several factors, including new customer retention, the timing of back-to-school spending, and availability of in-demand footwear, apparel and accessories. We believe that these factors helped drive additional transactions and a higher average ticket across our store footprint as well as online. In addition to experiencing continued sales growth in the third quarter, our laser focus on execution and an improving partnership with our vendor base led to an improved inventory position compared to last quarter. 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." Finally, Longo added, "Our recent performance exemplifies the effort of our team members and the resiliency of our business model. With ongoing expected market disruption and improvements to our operations, we remain optimistic the positive momentum we have enjoyed for most of this year will continue through the remainder of Fiscal 2021. The direction of the pandemic is uncertain, but we will continue to adapt and safeguard our customers and team members, while also striving to generate positive returns." | |
The company said,… The company said, "Based on the considerations above, we forecast the following GAAP results for the fourth quarter of Fiscal 2021 in comparison to the fourth quarter of Fiscal 2020: Comparable sales increases in the high-single digits to low-double digits; Gross margin improvement of approximately 380 to 400 basis points; SG&A leverage of approximately 40 to 60 basis points; and Diluted earnings per share in the range of $1.00 to $1.10, assuming an effective tax rate of approximately 25.0% and a diluted share count of approximately 17.2M. Additionally, non-GAAP adjustments in the fourth quarter of Fiscal 2021 are not expected to be material." | |
Reports Q3 revenue… Reports Q3 revenue $331.4M, consensus $286.42M. Comparable sales increase 21.2%; YTD comparable sales increase 22.0%. |