Hibbett Sports (NASDAQ:HIBB)
Hibbett Sports, a national athletic specialty retail company yesterday reported preliminary fourth quarter 2016 financial results. The company reported fourth quarter net sales of $246.9 million, which was a 0.5% increase the same quarter the previous year. Hibbett reported they expect fourth quarter adjusted earnings to be in the range of $0.53 to $0.55 per share which was down from analyst expectations of $0.70 per share and down from previous year’s fourth quarter of $0.76 per share.
Hibbett Sports, Inc. CEO’s Comments
Jeff Rosenthal, President and Chief Executive Officer, stated, “We were disappointed with sales in the fourth quarter. Weaker traffic during the holiday season and lower than expected sales in apparel and equipment led to a comparable store sales decline. We continued to experience strength in our footwear business, which was a direct result of our improved assortments and in-stocks by store types. As traffic declined and sales softened, we became more promotional in order to drive sales and manage inventory, which had a negative impact on gross margin. Further details about sales trends and our future outlook will be discussed when we report fourth quarter results on March 10, 2017.” Business Wire
HIBB Technical Analysis
HIBB opened trading yesterday at $33.55 which was up from the previous day’s trading close of $33.45. Shares closed trading yesterday at $33.25 and spiked down after market to $29.00, equivalent to a 13% decrease from the closing price. Taking a look at the daily chart we can see that the last time HIBB traded below these levels we have to go back to January 19, 2015 when it traded at $28.91.
Taking a closer look at the daily chart we can see that before the spike down HIBB had already been in an overall downward trend dating back to November 14th, 2016 when it traded at $45.80. HIBB has a float of 19.52 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see HIBB open trading on Tuesday below $30.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Hibbett Sports, Inc., together with its subsidiaries, operates athletic specialty stores in small and mid-sized markets primarily in the South, Southwest, Mid-Atlantic, and the Midwest regions of the United States.
Its stores offer a range of merchandise, including athletic footwear, team sports equipment, athletic and fashion apparel, and related accessories. The company also sells merchandise directly to educational institutions and youth associations. As of April 30, 2016, it operated 1,034 Hibbett Sports stores and 19 Sports Additions athletic shoe stores. The company was founded in 1945 and is based in Birmingham, Alabama.