**Hibbett Sports reports Q2 sales decline, H1 sales increase marginally**.
**BIRMINGHAM, Ala.** — Hibbett Sports, Inc. reported a decline in its second-quarter sales, as well as a marginal increase in its first half sales, on Thursday..
**Q2 FY2023**
During the three-month period ended July 29, 2023, the athletic footwear and apparel retailer’s net sales fell 4.6% to $289.2 million, compared to $303.5 million in the prior-year period.
Comparable store sales dropped 4.9%, due to a 200 basis point impact from the closure of underperforming stores, the company said.
Gross profit decreased 12.8% to $97.1 million, from $111.2 million, and gross margin contracted 270 basis points to 33.6%, due primarily to higher promotional activity and inventory-related expenses.
Net income fell 46.1% to $14.2 million, or $0.60 per diluted share, from $26.4 million, or $1.11 per diluted share, in Q2 2022.
Operating income decreased 36.8% to $24.3 million..
**H1 FY2023**
In the six-month period ended July 29, 2023, Hibbett’s net sales rose 1.3% to $618.9 million, compared to $610.7 million in the comparable period in the previous year.
Comparable store sales edged up 0.4%.
Gross profit increased 1.3% to $203.2 million, from $200.6 million, while gross margin remained stable at 32.8%.
Net income fell 16.5% to $37.7 million, or $1.59 per diluted share, from $45.2 million, or $1.91 per diluted share, in the first half of fiscal 2022.
Operating income decreased 14.1% to $55.2 million..
**Outlook**
For the full year, Hibbett expects net sales to be in the range of $1.245 billion to $1.295 billion, comparable store sales to be down in the low single digits, and diluted EPS to be between $3.95 and $4.45..
**Commentary**
“Sales in the second quarter were below our expectations as we faced a challenging macroeconomic backdrop, increased promotional activity in the marketplace and unseasonably warm weather negatively impacting demand for seasonal products,” said Mike McGoohan, Hibbett’s president and CEO.
“Despite these challenges, our team remained focused on controlling expenses and enhancing the customer experience. As a result, we improved our inventory position while maintaining a healthy financial position,” he added.
“While we anticipate the operating environment to remain challenging in the back half of the year, we are confident that our team’s focus on execution and our strong balance sheet will enable us to navigate the current environment and emerge stronger.”.
