What happened
Shares of Hibbett Sports (HIBB 1.04%) rose 22.2% in January, according to data provided by S&P Global Market Intelligence, but it was really just a continuation of a trend that saw the sporting goods store enjoy a long, steady climb all year long. Its stock is up almost 140% over the past 12 months.
So what
Sporting goods stores like Hibbett were able to rally during the COVID-19 pandemic as consumers chose to turn to fitness and outdoor recreational activities in large numbers. Although its retail stores were initially shut down just like the brick-and-mortar stores of other specialty retailers, Hibbett was able to leverage its omnichannel presence along with having a full inventory of Nike (NKE -0.78%) products, which accounts for over two-thirds of the products the retailer carries.
Image source: Hibbett Sports.
Having product in stock really helped when Hibbett was able to reopen its doors as it was able to attract new customers. The sporting goods store said new customers accounted for 25% of its physical store sales and 40% of e-commerce sales.
Now what
That momentum continued forward as demand for sporting goods equipment and apparel has not let up. Last quarter Hibbett saw total sales rise 20% on a 13% increase in same store sales. Online sales jumped 50%.
It's this sort of year-long trajectory that helped push Hibbett Sports up in January and possibly will continue doing so in 2021.
