Sign in

You're signed outSign in or to get full access.

HI

HIBBETT INC (HIBB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 FY2025 results were mixed: revenue missed Street while EPS slightly beat; management highlighted a challenging athletic footwear/apparel environment and did not host a call due to the pending JD Sports acquisition .
  • Revenue was $447.2M (down 1.8% y/y); comps -5.8% y/y; diluted EPS $2.67 (vs $2.74 y/y); gross margin expanded to 35.8% on lower promotions; SG&A rose to 23.7% of sales on inflation and merger-related fees .
  • Against consensus, Hibbett delivered a modest EPS beat but a revenue miss: EPS $2.67 vs $2.63; revenue $447.2M vs $453.9M; Street estimates cited from third-party sources due to S&P Global data unavailability (see Estimates Context) .
  • Stock reaction remains anchored by the announced $87.50 per share all-cash acquisition by JD Sports; Hibbett will cease to be a stand-alone public company upon closing, which is overshadowing quarterly fluctuations .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expansion to 35.8% (from 33.7% y/y) driven by higher average product margins and less promotional/clearance activity, evidencing improved pricing/mix discipline .
    • Inventory down 15.2% y/y to $371.3M, reflecting continued inventory management progress and healthier product positioning heading into subsequent periods .
    • Management reiterated strategic positioning in underserved communities with compelling assortments; “Our sales and diluted earnings per share for the first quarter of Fiscal 2025 were in line with our expectations in a very challenging athletic footwear and apparel retail market.” – Mike Longo, CEO .

  • What Went Wrong

    • Comparable sales fell 5.8% y/y with declines across brick-and-mortar and e-commerce, signaling persistent consumer softness and category pressure .
    • Revenue declined 1.8% y/y and missed consensus, suggesting traffic and conversion headwinds outweighed product margin gains despite tighter promotions .
    • SG&A deleveraged to 23.7% of sales (from 21.1% y/y), pressured by wage/benefit inflation and non-recurring fees related to the pending acquisition, constraining operating leverage .

Financial Results

Revenue, EPS, comps and margins (prior two quarters for trend; oldest → newest):

MetricQ3 FY2024Q4 FY2024Q1 FY2025
Revenue ($M)$431.9 $466.6 $447.2
Diluted EPS ($)$2.05 $2.55 $2.67
Comp Sales (% y/y)(2.7)% (6.4)% (5.8)%
Gross Margin (% of sales)—34.5% 35.8%

Sequential snapshot (operational KPIs):

KPIQ4 FY2024Q1 FY2025
SG&A (% of sales)—23.7%
Net Income ($M)—$32.5
Store Count (end of period)1,169 1,169 (6 openings, 6 closures)
Inventory ($M)—$371.3
Cash & Equivalents ($M)—$28.7; Debt $7.5 (on $160M LOC)

Vs. Estimates (Q1 FY2025):

MetricActualConsensusSurprise
Revenue ($M)$447.2 $453.91 -$6.7M (miss)
Diluted EPS ($)$2.67 $2.63 +$0.04 (beat)

Note: S&P Global consensus via our tool was unavailable for HIBB due to a mapping issue; third-party consensus references are used and cited (see Estimates Context) .

No segment breakdown is disclosed; Hibbett reports as a single retail operation .

Guidance Changes

Hibbett did not provide or update guidance in Q1 FY2025 due to the pending JD Sports acquisition; no earnings call was held.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company OutlookFY2025Issued at Q4 FY2024 (specific ranges not reiterated here) Not provided; no update in Q1Withdrawn/Suspended

Earnings Call Themes & Trends

The company did not host a Q1 FY2025 call. Thematic progression based on recent company communications:

TopicPrevious Mentions (Q3 FY2024)Previous Mentions (Q4 FY2024)Current Period (Q1 FY2025)Trend
Consumer/MacroComps -2.7% on softer demand; category pressure Holiday season “in line” with expectations; challenging retail environment “Very challenging” athletic footwear/apparel market; comps -5.8% Cautious
Inventory/PromotionsOngoing inventory balancing actionsInventory reduction goals achieved; promotions normalized GM +210 bps y/y on fewer promos; inventory -15.2% y/y Improving mix/margins
Brand/AssortmentContinued support from key brand partnersBenefited from new product launches/popular brands Positioning as preferred destinations in underserved communities Stable relationships
E-commerceDigital comps positive in Q4; mix 18.9% of sales (Q4) Digital progressed to 18.9% of sales E-commerce down 5.8% y/y; mirrors store trend Mixed
M&A (JD Sports)Agreement announced Apr 23, 2024 (post-Q4) Transaction pendingNo call; no guidance due to pending acquisition Drives near-term narrative

Management Commentary

  • “Our sales and diluted earnings per share for the first quarter of Fiscal 2025 were in line with our expectations in a very challenging athletic footwear and apparel retail market.” – Mike Longo, President & CEO .
  • “We continue to execute our long-term strategy, establishing Hibbett and City Gear stores as preferred shopping destinations for the compelling product assortment we offer to underserved communities across the country.” – Mike Longo .
  • “In light of the pending transaction with JD Sports, Hibbett will not be hosting an earnings conference call…and will not be providing or updating previously issued financial guidance.” – Company statement .

Q&A Highlights

  • No Q&A; the company did not host a Q1 FY2025 earnings call due to the pending acquisition by JD Sports .

Estimates Context

  • Our S&P Global (Capital IQ) consensus retrieval was unavailable for HIBB due to a mapping limitation in the tool. As a result, we cite broadly referenced third-party estimates for context: EPS consensus ~$2.63; revenue consensus ~$453.9M .
  • Result vs. consensus: modest EPS beat (+$0.04) and revenue miss (−$6.7M), implying better-than-feared margin execution amid soft top-line .

Guidance Changes

  • Guidance was not provided/updated in Q1 due to the pending JD Sports transaction; prior FY2025 outlook issued with Q4 results was not reiterated .

Key Takeaways for Investors

  • Near-term trading anchored by M&A: shares are largely driven by the $87.50 cash takeout by JD Sports, muting standalone quarterly volatility as long as deal risk remains low .
  • Earnings quality: Despite revenue pressure and negative comps, gross margin expansion and cost control preserved EPS above consensus, highlighting disciplined promotional posture and product margin strength .
  • Consumer softness persists: Broad-based declines in both stores and e-commerce underscore a cautious consumer and category-specific headwinds, warranting conservative top-line expectations absent brand-launch catalysts .
  • Inventory normalization a positive: Y/y inventory reduction positions HIBB for healthier turns and reduced markdown risk into subsequent seasons .
  • No guidance/no call lowers information velocity: Lack of quarterly cadence (no call, no guidance) reduces catalysts outside of deal progress, with fewer narrative updates for the buyside until transaction close .
  • Strategic fit under JD: The combination should enhance scale and vendor relationships; near-term, it largely removes standalone multiple/estimate debate as HIBB transitions off public markets .

Sources and primary documents:

  • Q1 FY2025 press release (also filed as 8-K exhibit): Business Wire and SEC archive .
  • Prior quarters: Q4 FY2024 press release; Q3 FY2024 press release and coverage .
  • No Q1 call/guidance per release schedule notice .
  • Acquisition update (JD Sports) .