Hibbett Sports (NASDAQ:HIBB) shares surged in early Friday trading after topping earnings expectations for the second quarter.
The sporting goods company reported earnings of $0.85 per share, $0.11 better than the analyst estimate of $0.74. However, revenue for the quarter came in at $374.9 million, below the consensus estimate of $377.04M.
HIBB shares are currently up more than 20%, trading above the $44 per share mark.
Second-quarter comparable sales fell by 7.3% compared to the same quarter last year, while net sales were down 4.6% year-over-year.
“We are pleased with our performance for the second quarter of Fiscal 2024," said Mike Longo, HIBB President and Chief Executive Officer. "Our sales for the second quarter were supported by a strong start to the busy back-to-school season and we also benefited from a positive customer response to new product launches during the quarter.”
He added that due to the inflationary environment, consumers have pulled back on discretionary spending, with the company's apparel business continuing to reflect softer demand amid a heavy promotional environment.
"Although we still face considerable headwinds, we believe we are well positioned for continued growth when market conditions improve," stated Longo.
Looking ahead, Hibbett Sports sees FY2024 earnings between $7 and $7.75 per share versus the consensus of $7.18.