Hibbett's Q2 May Face Margin Pressure Amid Choppy Spending Trends: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Cristina Fernandez reiterated an Outperform rating on Hibbett, Inc. (NASDAQ:HIBB) with a price target of $60. Despite choppy spending trends and a promotional environment for athletic footwear, the analyst believes Hibbett's Q2 expectations are achievable. The company is expected to have reduced inventory levels and is participating in the Yeezy drops in August, which could boost sales and online traffic. However, the analyst predicts an operating margin contraction in Q2 due to higher promotional activity and occupancy deleverage.
August 22, 2023 | 7:57 pm
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Hibbett, Inc. is expected to meet Q2 expectations despite choppy spending trends. Participation in the Yeezy drops could boost sales and online traffic. However, operating margin contraction is predicted due to higher promotional activity and occupancy deleverage.
The analyst from Telsey Advisory Group has reiterated an Outperform rating on Hibbett, Inc., indicating a positive outlook for the company. Despite the choppy spending trends, the analyst believes that the company's Q2 expectations are achievable, which could maintain investor confidence. However, the predicted operating margin contraction due to higher promotional activity and occupancy deleverage could negatively impact the company's profitability, potentially offsetting the positive sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100