Hibbett reports increase in Q3 sales, profit

Athletic apparel retailer Hibbett has reported an increase in sales and profit in the third quarter of the year as it benefited from the back-to-school season.

Sales at the US company increased 13.5 percent to 433.2 million dollars in the three months to October 29, with comparable sales up 9.9 percent.

Net income rose slightly to 25.6 million dollars from 25.2 million dollars a year earlier.

President and CEO Mike Longo said the third-quarter results reflected “a strong back-to-school season, which fell more in the third quarter this year than the second quarter as consumers waited closer to the start of school to make purchases”.

He said the company also experienced strong demand for its footwear, while its apparel sales were “pressured by a more competitive pricing environment”.

Based on its third-quarter results, Hibbett reiterated its full-year outlook despite expecting to face “a number of business and economic challenges” in the fourth quarter.

Longo said: “As we enter the fourth quarter and the busy holiday selling season, we believe we are well positioned to meet our objectives for fiscal 2023.”

Hibbett expects total net sales to increase in the low-single digit range in dollars compared to the prior year, and diluted earnings per share in the range of 9.75 dollars and 10.5 dollars.

“We have a strong inventory position and favorable vendor relationships to ensure we can meet the demands of our customers,” Longo said.