Hibbett Sports Inc.HIBB came up with its preliminary results for the second quarter of fiscal 2016, which reflect weak comparable-store sales (comps). Consequently, the sporting goods retailer provided disappointing earnings guidance for the second quarter.
Following the announcement, shares of Hibbett plunged 5.6% during yesterday's after-hours trading, to close at $43.00 per share.
The company reported comps decline of 1.1% year over year for the second quarter of fiscal 2016 due to postponement of the tax-free weekend by one week in 10 states coupled with overall business softness. However, net sales increased 2.8% to $199.3 million for the thirteen-week period ended Aug 1, 2015 from $193.9 million in the prior-year period.
Coming to earnings, the company was cautious about its estimated earnings for the second quarter, let down by weak comps. The company expects second-quarter earnings per share in the range of 26-28 cents compared with 32 cents earned in the prior-year quarter. The guidance fell well short of the Zacks Consensus Estimate of 36 cents per share for the quarter. The company intends to report second-quarter fiscal 2016 results on Aug 21, 2015.
We note that Hibbett began fiscal 2016 on a disappointing note as the company posted lower-than-expected top and bottom-line results for the first quarter in May. Following this soft start, management lowered its guidance for fiscal 2016 during the first quarter call. The company now envisions earnings in the range of $2.95-$3.04 per share for fiscal 2016, compared with the band of $2.95-$3.09 projected earlier.
Currently, Hibbett carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same industry are Build-A-Bear Workshop Inc. BBW , Five Below, Inc. FIVE and KAR Auction Services, Inc. KAR . While Build-A-Bear Workshop holds a Zacks Rank #1 (Strong Buy), Five Below and KAR Auction Services carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.