US: Hibbett Sports cuts FY earnings outlook
US retailer Hibbett Sports has cut its full-year outlook after weaker than expected traffic led to lower sales during the the second quarter.
The sporting goods company now expects full-year earnings per share to range from $2.63 to $2.73, with comparable store sales increasing in the low single-digit range. This compares to its earlier guidance of $2.78 to $2.98, and comparable store sales rising in the low single-digit range.
Preliminary results for the second quarter, meanwhile, show net sales are forecast to increase 4.2% to $194m from $186.2m a year ago. Comparable store sales are expected to edge up 0.1%.
Gross margin is forecast to slip slightly to 33.4% from 34.3% last year. The decline is primarily due to increased markdowns related to reducing slow selling and aged inventory.
Based on these trends, earnings per share are forecast to range from $0.30 to $0.32, down from $0.40 in the prior year period.
"A more cautious consumer led to weaker than anticipated traffic in the second quarter," said president and CEO Jeff Rosenthal. "Although we were disappointed with our overall comparable store sales, there was a slight improvement in July as we moved into the back-to-school season."
But, he added, the group anticipates a healthier back-to-school shopping season.
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