Is this a momentary slip or a permanent injury for Hibbett Sports
I see plenty to like. Earnings rose 25%, to $0.15 a share. Buybacks helped the per-share figure, but net income still grew by a very respectable 16%. Same-store sales, meanwhile, increased 2.6%.
Earlier this month, however, the company warned that per-share results would fall below its $0.20-$0.24 expectations. It attributed the weaker results to declining sales at its urban stores and an overall softness in consumer shopping.
Unlike competitors such as Dick's Sporting Goods
The company's focus on local markets has served it well in the past. Here is a company that actually welcomes the addition of a Wal-Mart
The third quarter is looking brighter for the company. Although the period has just begun, Hibbett has already seen positive results from its back-to-school efforts, and comps have increased by the mid-single-digits. For the year, earnings are now expected to come in at $1.07-$1.20 a share, down from $1.30-$1.35.
Just as shoppers looking for high-end merchandise can stop by Hibbett and pick up a few quality items, investors may want to use dips in the stock price to do the same.
Fool contributor Lawrence Rothman is happy to receive feedback, and he promises to read it when he's not being wrestled by his three children. He doesn't have any positions in the companies mentioned.