Merger-Bound Athletic-Inspired Fashion Retailer Hibbett Stumbles In Q1: Details
Portfolio Pulse from Nabaparna Bhattacharya
Hibbett, Inc. (NASDAQ:HIBB) reported Q1 fiscal 2025 earnings per share of $2.67, missing the street view of $2.70. Quarterly revenues were $447.16 million, below the analyst consensus of $453.91 million. Comparable sales decreased 5.8% year over year. The company has withdrawn its guidance due to a pending acquisition by JD Sports Fashion PLC (OTC:JDSPY).
June 05, 2024 | 12:24 pm
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NEGATIVE IMPACT
Hibbett reported Q1 earnings and revenues below expectations, with a 5.8% decline in comparable sales. The company has withdrawn its guidance due to a pending acquisition by JD Sports Fashion.
Hibbett's earnings and revenue miss, along with a significant decline in comparable sales, are likely to negatively impact the stock price in the short term. The withdrawal of guidance due to the pending acquisition adds uncertainty.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
JD Sports Fashion is set to acquire Hibbett, which has reported weaker-than-expected Q1 results. The acquisition may provide JD Sports with an opportunity to turn around Hibbett's performance.
The acquisition of Hibbett by JD Sports Fashion could be seen as a strategic move to improve Hibbett's performance. Despite Hibbett's weak Q1 results, the acquisition may be viewed positively for JD Sports in the long term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70