Hibbett Jumps 8% On Upbeat 2Q Results

Shares of Hibbett Sports jumped 7.8% on Friday after the sporting goods retailer reported stronger-than-expected 2Q results.

Hibbett Sports’ (HIBB) 2Q revenues grew 75% to $441.6 million year-on-year and surpassed Street estimates of $349.6 million. The athletic retailer’s adjusted EPS of $2.95 crushed Street estimates of $1.15 and witnessed solid improvement from the year-ago quarter’s loss per share of $0.13.

Its comparable-store-sales surged 79.2% during the quarter mainly driven by strong demand and temporary and permanent store closures of competitors. The government’s stimulus money also led to increased traffic at the company’s stores. (See HIBB stock analysis on TipRanks).

Following its earnings, Susquehanna analyst Sam Poser raised the stock’s price target to $40 (23.3% upside potential) from $35 and reiterated a Buy rating. Poser said, “HIBB is the lone company in our coverage universe to provide explicit guidance for the balance of the year, a sign of confidence for the business. Impressive inventory management portends long-term margin opportunities. Further, with a store fleet located primarily off-mall, HIBB holds a structural advantage over mall-based competitors.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys, 1 Hold, and 1 Sell. With shares up about 16% year-to-date, the average price target of $31 implies downside potential of 4.3% to current levels.