Ahead Of The Bell: Hibbett Sports

NEW YORK (AP) — A Stifel Nicolaus & Co. analyst said Friday that the latest quarterly results from Hibbett Sports Inc. were "troubling" and it may suffer as Walmart stores offers more specialized sports gear.

Hibbett shares fell $1.90, or 10.6 percent, to $16 in premarket trading on Friday.

Birmingham, Ala.-based Hibbett on Thursday said its second-quarter profit had plummeted 77 percent. Stifel analyst David Schick said the downbeat results were due to lower revenue — down by 6 percent — and "significantly more gross margin degradation than anticipated."

Schick also worried that Hibbett would lose ground to Walmart for sales of certain products.

"We believe (Hibbett's) numbers will support the fears of a more resurgent Walmart offering in technical apparel" or starter product, Schick told investors in a research report, adding that the retail giant might force Hibbett to further differentiate its products.

Stifel kept a "Hold" rating on the shares.