What happened
Shares of Hibbett Sports Inc. (HIBB 18.84%) were down nearly 32% as of 3:15 p.m. EDT Monday after the sporting-goods retailer announced disappointing preliminary second-quarter results.
So what
More specifically, Hibbett anticipates comparable-store sales will decline 10% year over year for the quarter -- in contrast to the company's latest guidance for full-year comps to increase in the low-single-digit range -- due to "very challenging sales trends." On the bottom line, that should translate to a loss per share in the range of $0.19 to $0.22.
IMAGE SOURCE: GETTY IMAGES.
That said, Hibbett Sports also announced it has launched a new, "transactional" e-commerce website at hibbett.com, which will be fully integrated with its physical stores.
Now what
"Despite the difficult retail environment, the company remains focused on improving its business for the long term," added Hibbett CEO Jeff Rosenthal. "Launching an e-commerce site has been a key strategic goal for Hibbett, and we took time to invest in our omni-channel infrastructure to do it the right way."
Investors are rightly discouraged by Hibbett's latest results and will need to wait until the company's formal quarterly report on August 18, 2017 to receive more details on its revised full-year guidance. In the meantime, it's no surprise to see Hibbett Sports stock plunging today.
