**Hibbett Sports Q2 Sales Drop on Comps Decline, H1 Sales Inch Forward**.
**U.S. sporting goods retailer Hibbett Sports, Inc. reported a decline in its second-quarter sales, primarily driven by a drop in comparable-store sales. However, the company’s overall sales for the first half of fiscal 2023 remained slightly ahead of the previous year.**.
**Q2 Performance**.
For the second quarter ended July 30, 2023, Hibbett Sports reported a 3.2% decrease in net sales to $360.1 million, down from $372.2 million in the same period last year. Comparable-store sales, a key metric for retailers, also declined by 3.8%..
The company’s gross profit margin improved slightly to 31.3%, compared to 31.1% in Q2 2022. This was mainly attributed to a favorable product mix and improved vendor terms..
**H1 Performance**.
Despite the Q2 sales decline, Hibbett Sports reported a marginal increase in its total sales for the first half of fiscal 2023. Net sales for the six months ended July 30, 2023, edged up 0.6% to $748.5 million, compared to $743.5 million in H1 2022..
The company’s gross profit margin for the first half remained stable at 31.4%, in line with the previous year’s 31.5%..
**Outlook**.
Hibbett Sports remains cautious about the macroeconomic environment and its potential impact on consumer spending. The company expects sales trends to moderate in the second half of fiscal 2023..
Despite the challenges, Hibbett Sports remains focused on executing its strategic initiatives, including expanding its omnichannel capabilities, optimizing its store portfolio, and enhancing its product assortment..
**Other Key Highlights**.
* E-commerce sales grew by 1.2% in Q2 and 10.4% in H1..
* Inventory increased by 31.6% as of July 30, 2023, compared to the same date last year..
* The company opened 7 new stores and closed 6 stores during the first half of fiscal 2023..
