Hibbett In Crossroads: Can Strategies Keep Hurdles At Bay?
Zacks Investment Research | Dec 04, 2018 08:01PM ET
Hibbett Sports Inc. (NASDAQ:HIBB) stock is displaying mixed sentiments, owing to near-term headwinds, offset by long-term potential. While growth of omni-channel capabilities, renewed loyalty program and inventory management initiatives place it in an advantageous position, the company’s recent quarterly performance and soft margins trend keep us on the sidelines.
The company’s shares have declined 23.7% year to date against the industry ’s growth of 15.7%. This decline can be attributed to Hibbett’s dismal surprise trend. It reported third straight earnings miss in third-quarter fiscal 2019 while sales were almost in line with estimates, after missing estimates in the preceding two quarters. Further, this Zacks Rank #3 (Hold) stock has declined 13.4% since reporting dismal results on Nov 27.
Dismal Surprise Trend & Soft Margins Remain Deterrents
As stated, Hibbett has been delivering dismal top- and bottom-line performances for the past few quarters. Apart from negative surprises, the company’s top and bottom lines declined year over year in third-quarter fiscal 2019. The sales decline was attributed to strong comparisons from last year due to the additional 53rd week as well as an impact from the sale of Team Division in December 2017. Furthermore, higher operating expenses due to e-commerce related expenses hurt margins and the bottom line.
Hibbett Sports, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.