Shares of Hibbett Sports (NASDAQ:HIBB) jumped on Tuesday, following the sports apparel retailer's second-quarter sales update. By the close of trading, Hibbett's stock was up nearly 13% after rising more than 26% earlier in the day.
Hibbett expects its second-quarter comparable-store sales to climb more than 70% year over year. That crushed Wall Street's estimates; analysts had expected comps growth of only 15.7%.
Hibbett says the gains will be driven by both its stores and its e-commerce, whose comps are predicted to rise by roughly 60% and 200%, respectively.
"We believe our sales have been positively impacted by multiple factors, including pent-up consumer demand, temporary and permanent store closures by our competitors, and stimulus money," CEO Mike Longo said in a press release. "These circumstances yielded increased traffic to our stores and website and the opportunity for new customers to experience our trademark service."
For the first half of the year, Hibbett estimates that its comps will rise by approximately 20%, including a 7% increase in store-based comps and a 140% surge in digital sales.
Hibbett also noted that it paid back the $50 million it borrowed during the early stages of the coronavirus pandemic, since the funds were not needed.
Hibbett's omnichannel strategy appears to be paying off. Its efforts to strengthen its e-commerce operations are certainly bearing fruit, as shown by its impressive digital sales growth. Moreover, Hibbett's ability to effectively sell its wares both in stores and online is helping it take share from its traditional retail competitors, many of whom will not survive the COVID-19 crisis.