On Friday, B.Riley has adjusted its outlook on Hibbett Sports (NASDAQ: NASDAQ:HIBB), raising the stock price target to $70 from $60 while maintaining a Neutral rating. The firm's evaluation follows Hibbett's fourth-quarter performance, which, although falling below Wall Street expectations, aligned with the company's own projected range.
Hibbett reported a strong beginning to the quarter, but experienced a slowdown towards the end of December and into January, reflecting a more selective consumer behavior. Despite this, the company's guidance for the fiscal year 2025 indicates flat to low single-digit percentage declines in comparable store sales, which is more cautious compared to the Street's estimation of a 1.5% increase.
The company's conservative stance is seen as a potentially strategic move, considering the observed deceleration in January. There is an anticipation of possible upside should customer response to new product launches gain momentum.
Still, the outlook remains guarded due to expectations of continued lower promotional activity in fiscal year 2025, especially within the apparel sector, where inventory imbalances are predicted to last into calendar year 2024.
The revised stock price target from B.Riley reflects a careful approach in light of the recent consumer trends and market conditions that Hibbett Sports is navigating. The firm's neutral position suggests a balanced view of the potential risks and opportunities for the retailer in the upcoming fiscal year.
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