**Hibbett Sports Q2 Sales Decline, H1 Sales Edge Up**.
**Hibbett Sports, Inc. (NASDAQ:HIBB)** reported a 1.2% decrease in net sales for the second quarter ended July 30, 2023, to $372.4 million, missing analysts’ estimates of $376.1 million. The decline was primarily attributed to a 2.4% drop in comparable store sales..
**Key Financial Highlights:**.
* Net sales: $372.4 million, down 1.2% year-over-year.
* Comparable store sales: down 2.4%.
* Net income: $24.7 million, up 15.6%.
* Diluted earnings per share: $1.88, up 13.5%.
**First Half Results:**.
For the first half of fiscal 2023, Hibbett’s net sales increased by a modest 0.5% to $782.6 million, primarily driven by new store openings. Comparable store sales remained flat during this period..
**Inventory and Margin Management:**.
As of July 30, 2023, Hibbett’s inventory levels stood at $536.6 million, a 16.3% increase compared to $461.4 million a year ago. The company attributed this rise to higher freight costs and a shift in the timing of receipts..
Gross margin improved slightly to 31.3% in Q2 from 31.1% in the prior-year quarter, primarily due to better merchandise margin..
**Outlook:**.
Looking ahead, Hibbett expressed cautious optimism about the remainder of fiscal 2023. The company expects comparable store sales to remain flat to slightly positive in the second half. However, it anticipates gross margin pressure due to higher inventory costs..
**CEO Commentary:**.
