Hibbett Inc. (HIBB) stock prices were up by 1.90% as of the market closing on August 26th, 2021. This brought the price per share up to USD$98.97 at the end of the trading day. Subsequent premarket fluctuations saw the stock rise by 4.58%, bringing it up to USD$103.50.
HIBB Stock’s Net Sales Reports
Net sales for the second quarter of 2021 saw HIBB stock report net sales in the amount of USD$419.3 million. This represents a 5.1% decrease from the USD$441.6 million for the prior year quarter. Reports for the second quarter of 2021 were positively impacted by pent-up consumer demand, and the temporary and permanent store closures by the company’s competitors. The disbursement of stimulus money also increased traffic to the company’s stores and website. Despite the reduction of stimulus funds and less disruption to HIBB stock’s biggest competitors, the company offset the potential impact of these changes. This was facilitated by the a bigger market share, improved customer engagement, and availability of in-demand product.
HIBB Stock’s Gross Margin Reports
Gross margins for the second quarter of 2021 was reported at 39% of net sales, up from the 37% reported for the prior year quarter. The nearly 200 basis point increase was largely attributable to higher sell through of premium priced product and improved profitability of e-commerce sales. The year over year difference was also consolidated by a slight mix shift away from e-commerce sales which carried a lower rate due to incremental fulfillment costs, despite boasting an overall improved margin.
Additional Financials
HIBB stock reported a solid liquidity position as of the end of the second quarter of 2021. The company reported USD$176.8 million in available cash and cash equivalents as of July 31st 2021. As of the same date, the company reported no outstanding debt and full availability under its USD$100 million secured credit facility. The end of the quarter saw the company report inventory in the amount of USD$216.8 million, representing a 19.1% increase from the prior year quarter. Capital Expenditures for Q2 2021 came out to USD$13.8 million, up from the USD$8.3 million reported in the prior year quarter.
Future Outlook for HIBB Stock
The company reported a promising quarter, consolidated by the strength of its financial reports for Q2 2021. HIBB stock is poised to leverage the resources at its disposal to maintain the momentum of its trajectory of success. Investors are hopeful that this will result in significant and sustained increases in shareholder value over the long term.
