- Hibbett Sports (NASDAQ:HIBB) lowers its guidance due to the impact of using markdowns to clear older inventory.
- The company expects Q1 comparable sales to fall 4% to 5%. The drop in sales leverage results in Hibbett setting Q1 EPS at $0.94 to $0.97 vs. $1.14 consensus and full-year EPS at $2.35 to $2.55 vs. $2.78 prior and $2.72 consensus.
- "We experienced a slow start to the quarter with a double-digit decline in comparable store sales in February, most of which we believe was attributable to a delay in tax refunds. Comparable store sales improved significantly in March to the positive mid-single digit range, but did not offset the decline in February," says CEO Jeff Rosenthal.
- "So far in April, we are very pleased with continued comparable store sales in the mid-single digit range, driven by strength in footwear and the successful rollout of our store-to-store/home initiative," he adds.
- Now read: Hibbett Sports Likely Has More Downside Ahead - But There Are Better Retail Shorts
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