American sportswear brand Hibbett's net sales at $830.4 mn in H1 FY24

Brick-and-mortar comparable sales dipped by 1.2 per cent in H1 FY24, while e-commerce sales saw a decline of 2.2 per cent. E-commerce constituted 14.3 per cent of the total net sales for H1 FY24, a slight reduction from 14.9 per cent in the previous year.

The gross margin for the first half of fiscal 2024 stood at 33.3 per cent of net sales, a decline from 35.7 per cent for the 26-week period ended July 30, 2022, the company said in a press release.

Selling, general, and administrative expenses accounted for 23 per cent of net sales in H1 FY24, showing a modest 10 basis point increase from 22.9 per cent last year. Net income for the period was $46.8 million, translating to $3.61 per diluted share, compared to $64.1 million, or $4.77 per diluted share, in the 26 weeks ended July 30, 2022.

In Q2 FY24, the company posted a 4.6 per cent decline in net sales to $374.9 million, compared to $392.8 million in the previous year. Comparable sales saw a decline, falling by 7.3 per cent. In terms of the channel, brick-and-mortar comparable sales declined by 7.7 per cent, while e-commerce sales fell by 5.2 per cent.

E-commerce made up 15.1 per cent of total net sales for Q2 FY24, nearly consistent with the 15.2 per cent during the same period last year.

The gross margin for Q2 FY24 stood at 32.8 per cent, down from 34.4 per cent in Q2 FY23. Selling, general, and administrative expenses increased to 25.3 per cent of net sales from 23.3 per cent in the prior-year quarter.

The company reported a net income of $10.9 million, or $0.85 per diluted share during Q2 FY24, a decline from $24.7 million, or $1.86 per diluted share in Q2 FY23. Furthermore, Hibbett opened five net new stores, expanding its retail footprint to 1,148 stores across 36 states.

“We are pleased with our performance for the second quarter of fiscal 2024. Our business model focuses on providing an exceptional consumer experience in underserved markets and produced solid financial results despite a challenging retail environment. Our sales for the second quarter were supported by a strong start to the busy back-to-school season, and we also benefited from a positive customer response to new product launches during the quarter,” said Mike Longo, president and chief executive officer.

Fibre2Fashion News Desk (DP)