Hibbett Inc. shares slid 4% in premarket trade Friday, after the sporting goods retailer missed profit estimates for its fiscal first quarter amid rising costs. The company posed net income of $39.3 million, or $2.89 a share, for the quarter to April 30, down from $84.8 million, or $5.00 a share, in the year-earlier period. Sales fell to $424.1 million from $506.9 million a year ago. The FactSet consensus was for EPS of $3.05 and sales of $418.0 million. Gross margin fell to 37% of net sales from 41.4% a year ago. The roughly 440 basis point decline was due to the deleverage of store occupancy, higher product costs and higher freight and transportation costs. SG&A costs were 22.5% of net sales compared with 18.1% a year ago. "Our customers spending habits were affected by lower discretionary income due to the absence of stimulus payments received in the first quarter of last year," CEO Mike Longo said in a statement. "We are pleased to report that the supply chain disruption we experienced at the end of last year has improved and our current inventory position is strong and consistent with our forecast." Inventories rose by about $94 million in the quarter, much of it arriving late in the period. That helped the company replace high demand products that leave it well placed to meet its sales targets for the year. "Looking ahead, we remain on track to achieve the Fiscal 2023 guidance we outlined last quarter," said Longo. That guidance is for sales to be relatively flat versus fiscal 2022 and for EPS to range from $9.75 to $10.50, compared with a FactSet consensus of $9.75. Shares have fallen 29% in the year to date, while the S&P 500 has fallen 15%.
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