Hibbett drops after bad quarterly earnings – Crypto News – Crypto News
Connect with us
Hibbett drops after bad quarterly earnings Hibbett drops after bad quarterly earnings

others

Hibbett drops after bad quarterly earnings – Crypto News

Published

3 years ago

on

The athletic-inspired apparel retailer Hibbett (HIBB) revealed lower-than-expected quarterly results, with earnings and sales suffering from competition and inflation. Shares of Hibbett were down 11% on Tuesday.

Hibbett reported earnings per share (EPS) of $1.94 for the third quarter of its fiscal year, with revenue rising 13.5% to $433.2 million. Comparable store sales increased by 9.9%. All three missed experts’ projections.

The gross margin contracted 200 basis points Y/Y to 34.3%. The operating margin compressed from 8.8% to 7.9%, and operating income for the quarter rose 2.4% to $34.2 million.

As of October 29, 2022, Hibbett has $25.1 million in cash and liquid assets. At the conclusion of the third quarter, there were 1,126 stores compared to 1,086 the previous year.
Inventory increased by 56.4% from Q3 of last year to Q3 of this year, totaling $404.8 million.

Despite the company’s excellent back-to-school and footwear sales, CEO Mike Longo said: “We experienced strong demand for our popular lines of footwear, reflecting continued consumer loyalty to our key brands while our apparel sales for the quarter were pressured by a more competitive pricing environment. Additionally, margins were affected by continued high freight and fuel costs and wage inflation.”

The company remains bullish

Despite the quarterly results, Hibbett remains optimistic heading into the holiday shopping season, according to Longo. The firm restated its earlier $9.75 to $10.50 full-year EPS. Outlookwith low-single-digit percentage growth in revenue expected.

“As we enter the fourth quarter and the busy holiday selling season, we believe we are well positioned to meet our objectives for Fiscal 2023. As a result, we are confirming our previous full-year guidance,” Longo concluded.

Ascending wedge pattern

The daily charts looks like a rising wedge pattern, which is a bearish reversal formation. The resistance now stands at the broken bullish trend line, currently near $62.50. If the price closes below that level on a daily and possibly weekly basis, the medium-term trend could change to bearish.

Read more: Stock indices may crash again soon

The major support stands near $51.30, where the 200-day moving average is located. That should be the main target for the bears in this leg down.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending