**Hibbett Sports Q2 Sales Disappoint Amidst Ongoing Challenges**.
**Key Financial Highlights:**.
* Comparable store sales decreased by 4.6% in Q2.
* Total sales declined by 2.6% to $271.3 million.
* Net income fell by 24.1% to $20.2 million.
* Diluted earnings per share dropped by 26.4% to $1.02.
**Store Closures and eCom Slowdown Drag Performance:**.
Hibbett Sports, a leading athletic footwear and apparel retailer, reported a disappointing second quarter due to a combination of store closures and a slowdown in its e-commerce business. Comparable store sales, a key metric for retailers, declined by 4.6%, reflecting a 4.3% decrease in comparable store traffic and a 0.3% decrease in average transaction value..
The company attributed the decline in store traffic to ongoing store closures as it continues to optimize its store portfolio. Hibbett has closed 62 stores year-to-date and plans to close an additional 50 stores by the end of fiscal 2024..
In addition to store closures, Hibbett’s e-commerce sales growth slowed down during the quarter. Digital sales increased by only 6.3%, compared to 15.4% growth in the same quarter last year. This slowdown reflects the normalization of consumer shopping behavior following the pandemic-induced surge in online sales..
**Cost Pressures and Inventory Management:**.
Hibbett also faced cost pressures during the quarter, with expenses increasing by 5.8%. The company attributed this increase to rising transportation and labor costs, as well as investments in its supply chain to improve inventory management..
Despite the challenges, Hibbett remains focused on optimizing its operations and managing inventory levels to improve overall profitability. The company has been implementing initiatives to reduce inventory and streamline its supply chain, which is expected to yield benefits in the future..
**Looking Ahead:**.
Hibbett Sports expects the challenging retail environment to continue in the near term. The company plans to focus on executing its strategic initiatives, including store optimization, inventory management, and digital transformation, to drive long-term growth..
However, the company cautioned that the macroeconomic uncertainty and inflationary pressures could impact its performance in the coming quarters. Hibbett remains committed to navigating these challenges and delivering value to its shareholders..
**About Hibbett Sports:**.
Hibbett Sports is a leading athletic footwear and apparel retailer with over 1,000 stores in the United States and Puerto Rico. The company offers a wide range of products from brands such as Nike, Adidas, and Under Armour, and is known for its knowledgeable staff and personalized customer service..
