Why Are Hibbett (HIBB) Shares Soaring Today

What Happened:
Shares of athletic apparel and footwear retailer Hibbett (NASDAQ:HIBB)
jumped 12% in the morning session after the company reported third quarter results with revenue exceeding Wall Street’s expectations, partly due to a small same-store sales beat. Much better margins and expense control led to EPS blowing past analysts’ expectations. Management added that sales benefitted from a strong back-to-school season in the initial month of the quarter.

Moving ahead, while same-store sales and net sales guidance for the full year were maintained, the company raised EPS guidance well above expectations based on a combination of expectations for lower operating expenses, lower interest expense, and a smaller number of shares outstanding. Zooming out, we think this was a very good quarter that should have most shareholders cheering.

Is now the time to buy Hibbett? Find out by reading the original article on StockStory.

What is the market telling us:
Hibbett’s shares are somewhat volatile and over the last year have had 24 moves greater than 5%. But moves this big are very rare even for Hibbett and that is indicating to us that this news had a significant impact on the market’s perception of the business.

Hibbett is down 10.2% since the beginning of the year, and at $60.50 per share it is trading 17.5% below its 52-week high of $73.36 from January 2023. Investors who bought $1,000 worth of Hibbett’s shares 5 years ago would now be looking at an investment worth $3,524.