**Hibbett Sports’** (NASDAQ:HIBB) sales in the second quarter fell short of analysts’ estimates and comparable store sales declined as the sporting goods retailer faced tough competition. The company’s H1 sales edged higher.
**Quarterly results**
Net sales for the second quarter ended July 30, 2023, totaled $478.5 million, a 1.3% increase compared to $472.4 million in the prior-year period. The top-line figure missed analysts’ consensus of $487.4 million.
Comparable store sales for the quarter decreased 1.8%, reflecting a 2.7% decline in brick-and-mortar stores and a 1.3% increase in direct-to-consumer sales.
Gross profit for Q2 2023 was $207.2 million, or 43.3% of net sales, compared to $212.5 million, or 45% of net sales, in Q2 2022. The decrease in gross margin was primarily due to higher markdowns.
Net income for the quarter fell to $38.6 million, or $2.53 per diluted share, from $46.8 million, or $3.12 per diluted share, in the same period last year.
At the end of the quarter, the company operated 1,064 stores, including 952 Hibbett Sports stores, 104 City Gear stores, and eight Sports & Fitness stores.
**Half-year performance**
For the first half of fiscal 2023, Hibbett’s net sales increased 1.5% year-over-year to $965.6 million, compared to $951.2 million in the first half of fiscal 2022.
Comparable store sales for H1 2023 remained flat, with a 0.5% increase in brick-and-mortar stores offset by a 1.5% decrease in direct-to-consumer sales.
Gross profit for the first half of fiscal 2023 was $416.6 million, or 43.2% of net sales, compared to $428.4 million, or 45.1% of net sales, in the first half of fiscal 2022.
Net income for the first half of fiscal 2023 decreased to $75.4 million, or $4.96 per diluted share, compared to $86.4 million, or $5.75 per diluted share, in the first half of fiscal 2022.
**Outlook**
For the full year of fiscal 2023, Hibbett expects net sales to be in the range of $2.04 billion to $2.08 billion, representing an increase of approximately 1.5% to 2.5% compared to fiscal 2022. Comparable store sales are expected to be flat to up 1%.
The company also anticipates gross margin to be approximately 43.5% for the full year, a decrease of approximately 150 basis points compared to fiscal 2022, primarily due to higher markdowns.
Hibbett projects net income to be in the range of $145 million to $160 million, or $9.50 to $10.50 per diluted share, for fiscal 2023.
**CEO’s comments**
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