**Hibbett Sports Q2 Sales Fall as Shoppers Shun Apparel**
**U.S. sporting goods retailer Hibbett Sports reported a decline in sales for the second quarter of 2023, as foot traffic and consumer demand remained weak.**
**Key takeaways from Hibbett Sports’ Q2 results:**
* Comparable store sales declined by 1.9%, missing analysts’ estimates of a 0.8% increase.
* Total sales fell by 0.4% to $355.3 million, below market expectations of $362.4 million.
* Net income plunged by 43.8% to $17.4 million, or $1.17 per share, significantly below the consensus estimate of $1.55 per share.
* Gross margin contracted by 190 basis points to 31.6% due to higher markdowns and promotional activity.
* The company opened six new stores and closed two during the quarter, bringing its total store count to 1,053.
**Apparel sales, which constitute a significant portion of Hibbett Sports’ business, witnessed a noticeable decline during the quarter.** The company attributed this to reduced consumer demand for athletic apparel and footwear, particularly in the basketball category.
**Sluggish foot traffic in physical stores also contributed to the decline in sales.** Hibbett Sports noted that shoppers are increasingly shifting towards online purchases, making it challenging for brick-and-mortar retailers to maintain sales momentum.
**Despite the challenging market conditions, Hibbett Sports CEO Jeff Rosenthal expressed optimism about the company’s long-term prospects.** He highlighted the company’s focus on enhancing its omnichannel capabilities, expanding its product offerings, and optimizing its store portfolio.
**Analysts remain cautious about Hibbett Sports’ near-term outlook, citing the ongoing headwinds in the retail industry.** They note that the company’s heavy reliance on apparel sales makes it vulnerable to fluctuations in consumer demand and fashion trends.
**Going forward, Hibbett Sports plans to continue investing in its digital presence, introducing new product categories, and improving its customer experience.** The company also expects to open additional stores in select markets to expand its reach.
**Hibbett Sports’ stock price has declined by over 20% since the beginning of the year, reflecting investors’ concerns about the company’s ability to navigate the current retail environment.** Analysts will closely monitor the company’s performance in the coming quarters to assess its progress in addressing these challenges and driving long-term growth..
