Not Running Fast Enough: Hibbett Struggles With Lower Demand And Surging Inventory
Portfolio Pulse from Shivani Kumaresan
Hibbett Inc (HIBB) reported lower-than-expected 1Q23 earnings and sales, leading to a 25% cut in its 2023 EPS guidance. Telsey Advisory Group analyst Cristina Fernández reiterated an Outperform rating with a $70 price target. The results reflect lower demand for discretionary products, inventory buildup, and increased markdowns.
May 26, 2023 | 4:40 pm
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NEGATIVE IMPACT
Hibbett's lowered guidance follows Foot Locker, Inc's results, indicating a potential industry-wide trend.
Foot Locker's results are mentioned in relation to Hibbett's lowered guidance, suggesting that the lowered demand for discretionary products, inventory buildup, and increased markdowns may be an industry-wide trend. This could have a negative short-term impact on Foot Locker's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Hibbett Inc reported lower-than-expected 1Q23 earnings and sales, leading to a 25% cut in its 2023 EPS guidance. The results reflect lower demand for discretionary products, inventory buildup, and increased markdowns.
Hibbett Inc's lower-than-expected earnings and sales, along with the 25% cut in its 2023 EPS guidance, indicate a negative short-term impact on the stock price. The lowered demand for discretionary products, inventory buildup, and increased markdowns are contributing factors to the negative outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100