Footwear keeps Hibbett Sports earnings on track

Hibbett Sports says strong expense control and footwear sales helped the retailer increase earnings in the third quarter.



The Alabama-based sporting goods retailer reported that for the third quarter ended Oct. 31, profit was $18.7 million, or 79 cents a share, up from $16.9 million, or 67 cents, a year earlier. Revenue increased 4.6% to $228.3 million. Same-store sales increased .6%.



“We were very pleased with our back-to-school sales, our margin performance and expense controls, and are encouraged by the great progress we are making with our merchandising initiatives," said Jeff Rosenthal, president and CEO. "Sales softened late in the quarter due to significant declines in our colder weather categories, although footwear remained strong due to benefits from a strong assortment and an improved in-stock position. Looking forward, we believe that our ongoing improvements in merchandise strategies, execution and replenishment capabilities have us well-positioned for the holiday season.”



For the quarter, Hibbett opened 20 new stores, expanded one store and closed three stores, bringing the store base to 1,031 in 33 states.



The company now expects earnings per diluted share in the range of $2.87 to $2.94 this year, from a previously reported range of $2.80 to $2.90. Same-store sales are expected to be close to flat for the year, which compares to previous guidance of flat to a low single-digit increase.



Hibbett rival Dick's Sporting Goods Inc. issued a downbeat report and slashed guidance earlier this week.