Hibbett Sports (NASDAQ: HIBB) reported its third quarter financial results on Friday morning. The Company surpassed earnings and revenue expectations, sending shares higher by 19% shortly after the opening bell.
For the quarter, Hibbett reported earnings of USD 0.32 per share on revenue of USD 275.5 Million. Analysts anticipated earnings of USD 0.16 per share on revenue of USD 260.7 Million.
Revenue improved by 27% during the quarter compared to USD 216.9 Million the same period a year ago. Comparable sales increased by 10.7%, excluding sales from City Gear.
E-commerce sales represented 10.5% of Hibbett’s total sales during the quarter. The increase in net sales was primarily attributable to the addition of City Gear. However, footwear sales also continued to drive business momentum along with positive sales in activewear and accessories connecting to footwear products.
Net income during the quarter totaled USD 2.3 Million versus USD 1.5 Million a year ago.
As the retail environment continues to change, Hibbett said it is focused on improving the productivity of its store. As previously reported, the Company is now moving forward with closing approximately 95 stores in fiscal 2020, which is expected to result in a non-recurring impairment and store closure charge in the range of USD 0.08 to USD 0.12 per share in fiscal 2020.
Based on the stronger-than-expected quarter, Hibbett raised its fiscal 2020 outlook.
For the fiscal 2020, Hibbett is expecting earnings between USD 2.30 to USD 2.50 per share compared to its previous projections range of USD 2.15 to USD 2.25 per share.
The Company is also expecting to report comparable store sales of 4% to 6%, raised from its previous forecast range of 1% to 2%.
Following the earnings report, Hibbett shares are now up 107.8% this year.