Hibbett Sports strikes out in Q1

Hibbett Sports says harsh winter weather, tax refund delays and the West Coast port dispute all contributed to the company posting an unanticipated decline in same store sales for the first quarter.

Jeff Rosenthal, president and CEO, said: “We experienced early headwinds in the quarter, with February posting a negative high-single-digit comp due to impacts from weather-related closures, port delays and a shift in the timing of tax refunds.”

For the three months ended April 30, Hibbett earned $27.4 million, down from a year-earlier profit of $28.4 million. Revenue was 3% higher to $270 million. Same store sales fell 0.9%. Gross profit margin declined to 37% from 37.5%.

The company profit declined because markdowns were taken to sell through merchandise related to slow sales in February due to store closures. Store occupancy costs also increased as a percentage of net sales due to lower-than-anticipated comparable store sales, the company said.

The Birmingham, Ala.-based retailer now projects earnings of $2.95 to $3.04 a share. Hibbett expects same store sales growth in the low-single digits.

Hibbett Sports, Inc. operates more than 1,000 sporting goods stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States.