**Hibbett Sports’ second-quarter sales fell short of expectations as the sporting goods retailer continued to grapple with inventory challenges. **
Net sales for the three months ended July 30 decreased 2.2% to $465.5 million, missing analysts’ estimates of $474.9 million, according to data from Refinitiv. Comparable sales, a key metric for retailers, slid 3.5% during the period, marking the company’s fourth consecutive quarter of negative comps.
Hibbett attributed the decline to ongoing supply chain disruptions and inflationary pressures, which have made it difficult for the company to secure enough inventory to meet customer demand. The retailer also cited a shift in consumer spending toward travel and entertainment as a factor in the sales shortfall.
Despite the challenges, Hibbett managed to post a modest increase in sales for the first half of the year. Net sales for the six months ended July 30 rose 1.1% to $916.9 million, while comparable sales edged up 0.9%.
The company’s gross margin expanded by 100 basis points to 30.6% during the second quarter, driven by a favorable product mix and higher average selling prices. However, this was offset by an increase in freight and logistics costs.
Hibbett reported a net income of $38.1 million, or $2.18 per share, for the second quarter, down from $52.9 million, or $2.99 per share, in the prior-year period. The decline was primarily due to the sales shortfall and higher expenses.
For the full year, Hibbett expects sales to increase in the low- to mid-single-digit range, with comparable sales expected to be flat to slightly positive. The company also anticipates gross margin to remain elevated compared to pre-pandemic levels.
.
