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HIBBETT INC (HIBB)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered net sales of $466.6M (+1.8% YoY) and diluted EPS of $2.55; EPS was modestly above consensus ($2.54) while revenue missed ($477.4M), with comps down 6.4% as brick-and-mortar softened and e-commerce grew .
  • Gross margin contracted ~70 bps to 34.5% on lower product margin and higher occupancy; SG&A rose ~140 bps to 23.0% on wage inflation and continued cloud/back-office investments, compressing operating margin to 8.7% .
  • FY2025 guidance calls for flat to ~2% sales, gross margin up 40–70 bps, SG&A up 90–120 bps, operating margin 7.0–7.4%, and diluted EPS of $8.00–$8.75, reflecting near-term deleverage from store growth and infrastructure investments .
  • Adjusters in Q4: the 53rd week added ~$22.9M sales and ~$0.21–$0.23 EPS; a gift card breakage estimate change added $3.5M revenue and ~$0.23 EPS, important for modeling the quarter’s quality and the stock’s reaction drivers .

What Went Well and What Went Wrong

What Went Well

  • CEO highlighted record FY sales of $1.73B and Q4 momentum driven by holiday season, new product launches, and strong footwear brand response; the integrated Hibbett Rewards X Nike Membership supported omni-channel growth and engagement .
  • E-commerce grew 6.9% YoY in Q4 with mix rising to 18.9% of sales, evidencing healthy digital traction despite softer store traffic .
  • Inventory fell 18.2% YoY to $344.3M, improving working capital and positioning for cleaner sell-through into FY2025 .

What Went Wrong

  • Q4 comps declined 6.4% (brick-and-mortar down 9.2%), reflecting a cautious consumer, selective spending, and residual promotional intensity in footwear/apparel .
  • Gross margin decreased ~70 bps YoY on ~125 bps lower average product margins and ~55 bps higher occupancy; SG&A deleverage (~140 bps) from wages and data processing investments weighed on profitability .
  • Versus consensus, revenue missed by ~$10.8M, suggesting demand softness vs models and/or timing effects from week-shift dynamics, despite the EPS meeting/beat .

Financial Results

Quarterly Trend (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Net Sales ($USD Millions)$374.9 $431.9 $466.6
Gross Margin %32.8% 33.9% 34.5%
SG&A % of Sales25.3% 23.0% 23.0%
Operating Margin %4.3% 8.0% 8.7%
Net Income ($USD Millions)$10.9 $25.5 $30.9
Diluted EPS ($)$0.85 $2.05 $2.55

Q4 YoY Comparison

MetricQ4 2023 (13 weeks)Q4 2024 (14 weeks)
Net Sales ($USD Millions)$458.3 $466.6
Gross Margin %35.2% 34.5%
SG&A % of Sales21.6% 23.0%
Operating Margin %11.1% 8.7%
Net Income ($USD Millions)$38.4 $30.9
Diluted EPS ($)$2.91 $2.55

Q4 Actuals vs Consensus

MetricActualConsensusBeat/Miss
Revenue ($USD Millions)$466.6 $477.4 Miss by $10.8M
Diluted EPS ($)$2.55 $2.54 Beat by $0.01

KPIs and Mix

KPIQ2 2024Q3 2024Q4 2024
Comparable Sales % (YoY)-7.3% -2.7% -6.4% (equiv. 13-wk)
Brick-and-Mortar Comps %-7.7% -5.4% -9.2%
E-commerce Comps %-5.2% +12.6% +6.9%
E-commerce as % of Sales15.1% 17.0% 18.9%
Stores Opened (net)+5 net (6 opened, 1 closed) +10 net (12 opened, 2 closed) +11 net (14 opened, 3 closed)
End of Period Store Count1,148 1,158 1,169
Inventory ($USD Millions)$430.8 $398.1 $344.3

Guidance Changes

FY2025 (introduced in Q4 2024)

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Sales GrowthFY2025N/AFlat to up ~2.0% vs FY2024 (53 wks) New
Comparable SalesFY2025N/AFlat to down low-single digit (vs weeks 2–53 FY2024) New
Gross Margin %FY2025N/A34.2%–34.5% New
SG&A % of SalesFY2025N/A23.9%–24.2% New
Operating Margin %FY2025N/A7.0%–7.4% New
Interest Expense % of SalesFY2025N/A~0.10%–0.20% New
Diluted EPS ($)FY2025N/A$8.00–$8.75 New
Diluted Shares (MM)FY2025N/A~11.6–11.7 New
Tax Rate %FY2025N/A22.9%–23.2% New
Capital Expenditures ($MM)FY2025N/A~$65–$75 (store-led) New
Net Store Growth (units)FY2025N/A~45–50 (≈80% Hibbett / 20% City Gear) New

FY2024 (updated in Q3 2024)

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SG&A % of SalesFY202423.3%–23.5% 23.1%–23.3% Lowered (cost savings)
Operating Margin %FY20247.4%–7.8% 7.6%–8.0% Raised
Interest Expense % of SalesFY20240.40%–0.45% 0.35%–0.40% Lowered
Diluted EPS ($)FY2024$7.00–$7.75 $8.00–$8.30 Raised
Diluted Shares (MM)FY2024~12.8 ~12.6 Lowered (repurchases)
Tax Rate %FY202423.5%–23.7% 23.1%–23.3% Lowered

Earnings Call Themes & Trends

TopicQ2 2024 (Aug 25, 2023)Q3 2024 (Nov 21, 2023)Q4 2024 (Mar 15, 2024)Trend
Promotional EnvironmentHeavy promotions drove ~215 bps product margin decline; GM down ~160 bps Higher promotional activity continued; GM down ~40 bps FY2025 outlook assumes less impactful promotions; GM +40–70 bps YoY Easing (guided)
Loyalty & Nike Connected ProgramN/AAnnounced Connected Partnership linking Hibbett and Nike loyalty programs Integrated program aided Q4; loyalty sales reportedly grew high-single digits on the call Strengthening
E-commerce Momentum-5.2% comps; mix 15.1% +12.6% comps; mix 17.0% +6.9% comps; mix 18.9% Positive mix shift
Inventory & Supply ChainInventory +17.6% YoY Inventory -1.7% YoY; down 5.4% YTD Inventory -18.2% YoY Improving levels
Consumer/Macro ToneInflation and selective spending pressure; apparel softer Elevated consumer concerns; some holiday intent improvement noted on call FY2025 commentary: cautious/selective consumer, wage pressure, geopolitical complexity Cautious
One-time/Technical ItemsN/AN/A53rd week: ~$22.9M sales; ~$0.21–$0.23 EPS; gift card breakage change: +$3.5M revenue; +$0.23 EPS Non-recurring boosts

Management Commentary

  • “We finished the year with $1.73 billion in sales, a new full fiscal year record for Hibbett. Our sales performance for the fourth quarter reflects the busy holiday selling season… [and] popular footwear brands. The fourth quarter also benefited from our integrated Hibbett Rewards X Nike Membership” — Mike Longo, CEO .
  • Strategy and investment focus: “In Fiscal 2025, we plan to continue to make significant investments in our store footprint, customer-facing technologies, and back-office infrastructure. This will impact our profitability growth in the short term but will enhance our value proposition and profitability over the longer term” .
  • Quarter-specific drivers: “Total net product sales for the 53rd week… were approximately $22.9 million… increased fourth quarter and full year net income by an estimated $2.6 to $2.8 million… diluted EPS range of $0.21 to $0.23… recorded a $3.5 million increase in revenue due to a change in estimate in gift card breakage… contributed $0.23 of diluted EPS” .

Q&A Highlights

  • Loyalty & engagement: management noted loyalty sales growth in high-single digits, underpinned by the Hibbett Rewards X Nike program and digital enhancements .
  • Margin drivers: CFO quantified EPS impacts from the 53rd week and gift card breakage change for modeling transparency (EPS +$0.21–$0.23 and +$0.23, respectively) .
  • Prior-quarter share count context: “End of the year share count is approximately 12.6 million diluted shares” — CFO during Q3 call .

Estimates Context

  • Q4 consensus EPS was $2.54 and revenue $477.4M; HIBB delivered $2.55 EPS and $466.6M revenue — EPS beat by $0.01, revenue missed by $10.8M .
  • S&P Global consensus data could not be retrieved due to a CIQ mapping error; MarketBeat/Quartr served as the consensus source for this recap .

Key Takeaways for Investors

  • Mix shift to digital is durable; e-commerce penetration increased sequentially to 18.9%, supporting resilience even as store comps weakened .
  • Near-term margin headwinds (occupancy, wages, tech spend) persist, but FY2025 outlook implies gross margin improvement offset by SG&A deleverage; monitor cadence of promotions and freight/logistics tailwinds .
  • Adjust for non-recurring Q4 items (53rd week, gift card breakage) when modeling EPS quality and run-rate profitability; these were meaningful contributors to the quarter .
  • Footwear brand strength and launch calendars remain core revenue drivers; management cites continued market share gains with premium brands — a key support for the medium-term thesis .
  • Capital allocation remains shareholder-friendly with buybacks and dividends, alongside elevated capex for store growth and customer experience — expect near-term leverage but long-term value creation if productivity holds .
  • FY2025 EPS guide ($8.00–$8.75) assumes a cautious consumer and wage pressure; upside hinges on promotional normalization and loyalty-driven demand conversion through the Nike partnership .
  • Trading setup: modest EPS beat vs revenue miss and identifiable one-time boosts suggest balanced near-term risk; narrative catalysts include loyalty program traction, digital mix gains, and any signs of promotional moderation in-season .

Appendix: Sources

  • Q4 2024 8-K and Exhibit 99.1 press release (full): .
  • Q3 2024 8-K and press release: .
  • Q2 2024 8-K and press release: .
  • BusinessWire press release (Q4 2024): .
  • MarketBeat (consensus/recap/resources): .
  • PublicNow (press release PDF mirror): .
  • Seeking Alpha transcripts (Q2/Q3 references): .
  • Yahoo/InsiderMonkey Q3 call summary: .