Better-than-feared would be how the market saw Hibbett Inc (NASDAQ:HIBB)'s quarterly results on Friday as the sports retailer’s stock rallied in early deals.
The parent company for Hibbett Sporting Goods reported a 7.6% drop in same-store sales, whilst total sales were down 4.6% at $374.9 million.
Second-quarter net income more than halved to US$10.9 million from $24.7 million a year ago, and on a per share basis it amounted to 85 cents.
Nevertheless, Wall Street analysts had expected worse with consensus forecasts penciled in at 73 cents per share.
The downbeat expectations had no doubt been compounded by the poor showing from both Dick’s Sporting Goods and Foot Locker, each of which lost significant value earlier this week.
Hibbett chief executive Mike Longo told investors that sales in the quarter were supported by a “busy” back-to-school season plus recent new product launches.
Moreover, Longo claimed Hibbett has a "more selective" approach to stocking footwear, which allowed its sales, “especially with popular premium brands”, to remain more consistent than other retailers.
“Although we still face considerable headwinds, we believe we are well positioned for continued growth when market conditions improve,” Longo said in a statement.
In New York, Hibbett stock was up $3.14 or 8.5% in Friday’s early trading.