Net sales

Hibbett posts 16.3% decline in net sales in the first quarter of FY23

US fashion retailer Hibbett reported net sales of $424.1 million for the first trimester (Q1) in fiscal 2023 (FY23), down 16.3% from $506.9 million in the corresponding period of FY22.

The company’s comparable sales for the 13 weeks to April 30 also fell 18.9% from a year ago, but rose 22.9% from fiscal 2020.

During the quarter, same-store sales at Hibbett retail stores fell 22.0%, while the retailer’s online sales increased 4.1% year-on-year.

Driven by its store occupancy deleveraging, higher average product costs and higher freight and transportation costs, Hibbett’s gross margin was 37.0% of net sales, 440 basis points. base less than the 41.4% recorded a year earlier.

The company’s net profit for the quarter fell to $39.3 million from $84.8 million a year earlier, while its earnings per share (EPS) was $2.89 from $5.00. in the first quarter of 2022.

Hibbett President and CEO Mike Longo said, “During the first quarter, our team effectively executed our strategic plan and delivered comparable store sales and financial results in line with our expectations.

“As we discussed previously, our customers’ spending habits have been impacted by the decline in Discretionary Income due to the lack of stimulus payments received in the first quarter of last year.

“We are pleased to report that the supply chain disruption we experienced late last year has improved and our current inventory position is strong and in line with our guidance.”

For FY23, Hibbett expects its total net sales to be relatively stable in dollars compared to its FY22 results and has forecast EPS between $9.75 and $10.50.

The retailer opened a net nine stores in the first quarter, ending the quarter with 1,105 stores in 35 states.

He plans to open 30 to 40 stores over the rest of the year.