Here's What Triggered Hibbett Sports' Disaster
Hibbett Sports Inc. (HIBB) - Get Hibbett Inc Report shares were down another 1.15% to $12.95 in premarket trading Tuesday after falling more than 30% in the previous session after the company announced that it was cutting its second quarter same store sales forecast 10%.
The company expects to lose between 19 cents and 22 cents per share in the second quarter, at the tail end of BMO Capital's estimate of a 15 cents to 19 cents per share loss.
"It appears HIBB is trending toward the lowest EBIT margin in over a decade on a 6.6% decline in 2017 annual comp-store sales. We leave hearing more effective traffic-driving marketing will be needed but no solid merchandising solution as it is bound by the speed of innovation and product allocations from Nike (NKE) - Get NIKE, Inc. Class B Report , Under Armour (UAA) - Get Under Armour, Inc. Class A Report , and Adidas," BMO analysts wrote.
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