Shares of Hibbett Sports (NASDAQ: HIBB), a leading retailer of sporting goods and athletic apparel, jumped nearly 24% higher Friday morning after the company delivered an impressive third-quarter report at a time when a number of retailers are struggling.
It was a solid third quarter from just about any angle. Sales increased 27% to $275.5 million, easily topping analysts' estimates of $260.7 million. Adjusted earnings per share checked in at $0.32, also easily topping analysts' estimates of $0.15 per share. The strong results were driven by a number of factors, including a 10.7% increase in same-store sales and a 20-basis-point improvement in gross margins to reach 32.7%. Hibbett's 10.7% same-store sales increase was its strongest quarterly increase since the first quarter of fiscal 2013, and it was also its fourth consecutive quarter with positive comps. Another bright spot was Hibbett's e-commerce business, which again outperformed expectations and accounted for 10.5% of third-quarter sales. "This sales growth has been made possible by our team's execution of our strategic focus to lead with sneakers and connect toe-to-head concepts within our apparel and team sports businesses," said Jeff Rosenthal, president and chief executive officer, in a press release.
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