Shares of Hibbett Sports Inc. (HIBB) have lost much of its momentum, and yesterday this Zacks Rank #5 (Strong Sell) stock hit a 52-week low of $42.61 before closing trade at $42.76. Though the share price of this sporting goods retailer has been declining since the beginning of the year, we believe the current fall is due to the recently reported disappointing second-quarter fiscal 2014 results.
Since the beginning of 2014, Hibbett shares have plunged 35.8%. Moreover, the company’s shares have slumped nearly 8.7% since its second-quarter results, released on Aug 22, 2014.
The sporting goods retailer’s second-quarter earnings of 32 cents per share witnessed a 20% fall from the year-ago comparable quarter’s earnings of 40 cents. However, it came at the higher end of the company’s cautious forecast of 30–32 cents per share provided earlier. Moreover, it surpassed the Zacks Consensus Estimate by a penny.
Net sales increased 4.1% year over year to $193.9 million but fell short of the Zacks Consensus Estimate of $196 million. Sales results missed our estimate, mainly on weak comparable store sales, due to lower-than-expected traffic trends since customers are still cautious with their purchases. Comparable-store sales for the quarter increased 0.1%.
Following the second-quarter results, the company reiterated its fiscal 2015 guidance which was provided during the preliminary results that estimates earnings per share of $2.63–$2.73 with comps growth in the low single-digit range. During the preliminary results release, the company had lowered its earlier projected earnings range of $2.78–$2.98 per share and comps growth of low-to-mid single-digit range.
Other Stocks to Consider
Other better-ranked stocks in the retail industry include Bed Bath & Beyond Inc. (BBBY), Five Below, Inc. (FIVE) and Jumei International Holding Limited (JMEI), all carrying a Zacks Rank #2 (Buy).
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