Hibbett 3Q Profit Slips as Overhead Rises
Birmingham, Ala. Hibbett Sports Inc. said Thursday its third-quarter profit fell 2% despite a pickup in sales, as overhead and other costs rose at the sporting-goods retailer.
Hibbett said it earned $7.7 million ended Nov. 1, compared with $7.8 million a year earlier.
Sales increased 8% to $140.1 million—while analysts forecast $144.5 million—and same-store sales at locations open at least a year edged up 0.4%.
But store operating, selling and administrative expensive climbed to $31.1 million from $26.9 million, and depreciation and amortization costs also increased.
Hibbett opened 22 new stores and closed 8 stores in the quarter, leaving it with 726 stores in 24 states on Nov. 1.
For the next fiscal year, the company plans to open 75 to 79 new stores and close 12.
Chairman and chief executive Mickey Newsome said he was pleased with the results in a challenging retail environment.