Hibbett Sports reported results for the first quarter on Wednesday, but declined to share updated financial targets in light of its upcoming acquisition by JD Sports.
In Hibbett’s first quarter, net sales were down 1.8 percent from the prior year to $447.2 million, short of the $453.91 million expected by analysts surveyed by Yahoo Finance. Net income was $32.5 million, or $2.67 per diluted share, ahead of the expected $2.63.
Comparable sales were down 5.8 percent, with brick and mortar comparable sales down 5.8 percent and e-commerce down 5.8 percent.
Hibbett president and chief executive officer Mike Longo said in a statement that the company delivered results that were in line with its expectations during a “very challenging athletic footwear and apparel retail market.”
In April, British sneaker and athletics giant JD Sports Fashion announced its would acquire Hibbett as part of its efforts to dig deeper into the U.S. market. The deal is expected to close in the second half of 2024.
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“Our previously announced agreement to be acquired by JD Sports is a true testament to all that our Hibbett and City Gear teams have built over the years and reinforces the strength of our brands, our close relationships with our vendor partners, and our team of dedicated associates across the country,” Longo said. “We are excited to begin our new chapter with JD Sports.”
Given the upcoming transaction, Hibbett did not share updated financial guidance and will not host a conference call to discuss its first quarter results.
In March, Hibbett said that “business and economic challenges” such as inflation, high interest rates, promotional activity, wage pressure, consumer caution and geopolitical conflicts would continue to impact business throughout 2025. At the time, the company issued a softer guidance for the year and said it expects net sales to be between flat and up 2 percent from the prior year, with diluted EPS expected to be between $8.00 and $8.75.
