Hibbett comps softer than expected in second quarter

Hibbett Sports president and CEO Jeff Rosenthal said that comparable store sales for the second quarter ended Aug. 2 were softer than expected. However, he is encouraged by improvement in traffic in early August.

Net sales for the quarter increased 4.1% to $193.9 million compared with $186.2 million for the 13-week period ended August 3, 2013. Comparable store sales increased 0.1%.

The company’s profit in the quarter declined 21%, amid higher store operating, selling and administrative expenses. Net income for the period was $8.4 million, compared with $10.5 million for the 13-week period ended August 3, 2013.

“We are on pace to achieve our goal of 75 to 80 new stores this year, and continue to be pleased with new store performance. Our new wholesale and logistics facility continues to show significant productivity gains, and we look forward to the benefits this facility will provide. This, along with our other major initiatives, gives us confidence that we are positioned well for future success,” Rosenthal added.

For the quarter, Hibbett opened 16 new stores, expanded one high performing store and closed five underperforming stores, bringing the store base to 950 in 31 states as of Aug. 2. Estimated square footage for the store base increased 6.4% to approximately 5.5 million sq. ft. as of Aug. 2, compared with 5.1 million sq. ft. at Aug. 3, 2013.