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July 21, 2020, 10:32 a.m. EDT

Hibbett Sports stock soars after second-quarter business update includes 70% same-store sales growth forecast

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By Tonya Garcia

Hibbett Sports Inc. /zigman2/quotes/201173500/composite HIBB +1.99% shares soared more than 18% in Tuesday trading after the athletic retailer gave a late-Monday second-quarter business update that includes a 70% same-store sales growth forecast. The FactSet consensus was for 15.7% growth. Brick-and-mortar same-store sales are expected to grow 60% and online sales are forecast to jump 200%. Hibbett says nearly all of its stores are open. Among the factors that Chief Executive Mike Longo attributes to the sales leap are stimulus checks and pent-up demand. New customers also contributed to the results, with 25% of brick-and-mortar sales and 40% of online sales coming from new shoppers. Hibbett Sports says it has paid back the $50 million it borrowed as a precautionary measure during the early days of the coronavirus pandemic. Raymond James analysts say Hibbett benefited from strong Nike Inc. /zigman2/quotes/203439053/composite NKE -0.42% sales, which accounts for 68% of the retailer's product. And the result bodes well for one of Hibbett's competitors, Foot Locker Inc. /zigman2/quotes/204092533/composite FL -0.21% , which it calls "the single best global physical distribution point for premium athletic footwear." Analysts think Foot Locker is positioned to gain market share. "The bottom line is Hibbett's sales update provides credence to our view that athletic foot traffic in the U.S. could accelerate to a flattish to slightly positive growth rate by 3Q20," Raymond James said. Hibbett stock is down 5.1% for the year to date while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.60% is up 1.1% for the period.

/zigman2/quotes/201173500/composite
US : U.S.: Nasdaq
$ 37.65
+0.74 +1.99%
Volume: 344,499
Sept. 25, 2020 4:00p
P/E Ratio
19.60
Dividend Yield
N/A
Market Cap
$622.87 million
Rev. per Employee
$109,639
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/zigman2/quotes/203439053/composite
US : U.S.: NYSE
$ 124.23
-0.52 -0.42%
Volume: 9.18M
Sept. 25, 2020 4:00p
P/E Ratio
74.22
Dividend Yield
0.79%
Market Cap
$193.78 billion
Rev. per Employee
$529,466
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/zigman2/quotes/204092533/composite
US : U.S.: NYSE
$ 32.80
-0.07 -0.21%
Volume: 1.84M
Sept. 25, 2020 4:00p
P/E Ratio
17.45
Dividend Yield
1.83%
Market Cap
$3.42 billion
Rev. per Employee
$161,332
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/zigman2/quotes/210599714/realtime
US : S&P US
3,298.46
+51.87 +1.60%
Volume: 2.18B
Sept. 25, 2020 5:06p
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