Sporting goods retailer Hibbett Sports saw its second quarter sales decline and first-half sales increase modestly, as the company continued to navigate inventory challenges and a challenging retail environment.
**Q2 and H1 Sales**
For the second quarter ended July 30, 2023, Hibbett reported net sales of $290 million, a decrease of 5.4% compared to $306 million in the prior-year period. Comparable store sales also declined by 4.8%.
Despite the Q2 sales decline, Hibbett’s first-half sales for fiscal 2023 inched up by 1.3% to $650 million, compared to $642 million in the same period last year. Comparable store sales for the first half increased by 1.1%.
**Challenges and Initiatives**
Hibbett attributed the Q2 sales decline to ongoing inventory challenges and a shift in consumer spending away from discretionary items. The company noted that it faced difficulties in replenishing certain high-demand products, particularly in the footwear category.
To address these challenges, Hibbett is implementing several initiatives, including expanding its vendor relationships, improving its forecasting capabilities, and exploring new sourcing options. The company is also focusing on driving sales through its omnichannel platform, including its e-commerce website and mobile app.
**Outlook**
For the full fiscal year 2023, Hibbett expects net sales to be in the range of $1.32 billion to $1.34 billion, representing an increase of approximately 3% to 4% compared to fiscal 2022. The company also anticipates comparable store sales growth in the low- to mid-single digits.
Hibbett remains cautiously optimistic about the remainder of fiscal 2023, despite the ongoing challenges in the retail sector. The company believes that its focus on inventory management, omnichannel growth, and customer service will position it for long-term success.
**Stock Performance**
Following the release of its Q2 results, Hibbett’s stock price declined by approximately 2% in pre-market trading. The stock has been under pressure in recent months due to concerns about the impact of inflation and the broader economic slowdown on consumer spending.
**Conclusion**
Hibbett Sports’ Q2 sales decline highlights the ongoing challenges facing the sporting goods industry. However, the company’s first-half sales growth and positive outlook suggest that it is taking the necessary steps to navigate these challenges and drive long-term growth..
