Stimulus, Online Boost Q2 Results for Hibbett Sports
Stimulus money and pent-up consumer demand helped Hibbett Sports, which sells athletic-inspired fashion, achieve a 74.9% year-over-year revenue increase in the second quarter ended Aug. 1.
Net sales increased to $441.6 million. E-commerce was also a big driver of growth, with online sales jumping by 212.2%. E-commerce represented 15.7% of total net sales for the second quarter, compared with 8.6% in the prior-year second quarter.
Meanwhile, comparable sales increased 79.2%. Brick-and-mortar comparable sales increased 65.2%.
“Our nearly 80% comparable-sales results were driven by multiple factors, including pent-up consumer demand, temporary and permanent competitor store closures, and government stimulus money,” said Mike Longo, president and CEO of Brimingham, Alabama-based Hibbett. “We believe that these circumstances yielded increased traffic to our stores and website and provided new customers the opportunity to experience our trademark service.”
Hibbett also said that gross margin was 37% of net sales for the 13-week period ended Aug. 1, compared with 30.3% of net sales for the 13-week period ended Aug. 3, 2019. The approximate 670 basis-point increase was driven by higher sell-through, a reduction in inventory valuation reserves and leverage of store occupancy expenses. These impacts were slightly offset by a higher mix of e-commerce sales, which carried a lower margin due to incremental shipping costs. Net income for the 13-week period ended Aug. 1 was $40.4 million, or $2.38 per diluted share, compared with a net loss of $8.8 million, or 49 cents per share, for the 13-week period for the same period last year.
Net sales so far this year have increased 19.4% to $711.4 million for Hibbett. Comparable sales have increased 22.2%. Brick-and-mortar comparable sales were up 8.9%, and e-commerce sales increased 150.9%, representing 18.2% of total sales in the current year, compared with 8.4% of total sales in the comparable period last year.
Earlier this month, Dick’s Sporting Goods reported similar trends and gains as part of its Q2 financial report.