Why Athletic-Inspired Fashion Retailer Hibbett's Shares Are Skyrocketing Today
Portfolio Pulse from Nabaparna Bhattacharya
Hibbett, Inc. (NASDAQ:HIBB) shares surged after reporting Q3 sales of $431.92 million, surpassing analyst expectations of $416.02 million. Despite a slight 0.3% Y/Y net sales decrease, the company's Q3 EPS of $2.05 exceeded estimates of $1.17. E-commerce sales grew by 12.6% Y/Y, while brick-and-mortar sales fell by 5.4%. Gross margin slightly declined due to higher promotional activity. Hibbett opened ten new stores, updated its FY24 EPS outlook to $8.00-$8.30 from $7.00-$7.75, and expects total sales to be flat to up ~2.0% for FY24. The stock price rose by 16.56% to $62.50 in premarket trading.
November 21, 2023 | 2:16 pm
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Hibbett, Inc. reported strong Q3 results with sales and EPS exceeding analyst expectations, leading to a significant premarket stock price increase. The company also raised its FY24 EPS outlook and expects stable to slightly increased total sales.
The positive earnings report and raised EPS outlook for FY24 are strong indicators of the company's financial health and future prospects, which typically result in a positive short-term impact on the stock price. The significant premarket stock price increase reflects investor optimism.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100