Shares of athletic-inspired fashion products provider Hibbett, Inc. (HIBB) have nosedived 38.6% so far this year. The company recently delivered weaker than-expected numbers for the fourth quarter.
Despite a strong holiday season, supply chain challenges and inflation weighed on Hibbett’s performance. Net sales increased 1.7% year-over-year to $383.35 million, but lagged the consensus estimate of $383.72 million. Earnings per share at $1.25, too, fell short of expectations by $0.1.
Nonetheless, Hibbett recorded a 19.1% increase in net sales and a massive 156.6% jump in its bottom-line for fiscal 2022 on the back of a 17.4% growth in comparable sales during the year.
Management noted it has upgraded the business model over the past two years, which should sustain the company’s profitable growth as compared to pre-pandemic levels. With these developments in mind, let’s have a look at what’s changed in HIBB’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Hibbett’s top risk category is Ability to Sell, contributing 10 of the total 37 risks identified for the stock, compared to a sector average of 6 risk factors under the same category.
However, in its recent report, the company has added one key risk factor under the Finance & Corporate risk category.
Hibbett highlighted that it currently distributes a quarterly dividend of $0.25 per share; however, there can be no guarantee regarding the amount or declaration of dividends in the future.
Dividend distribution hinges on a number of factors, including compliance with regulatory requirements, Hibbett’s capital allocation, operational results, debt covenants, and the broader economic conditions. Consequently, any changes in the company’s dividend policy could negatively impact its share price.
Hedge Fund Activity
According to TipRanks data, Wall Street’s top hedge funds have decreased holdings in Hibbett by 56.5 thousand shares in the last quarter, indicating a negative hedge fund confidence signal in the stock based on activities of 6 hedge funds.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
SmartRent Shares Drop 10% on Mixed Q4 Results & Muted FY22 Outlook
Philip Morris Jumps 1.5% on Plans to Exit Russia
FactSet Shares Dip Despite Q2 Beat & Raised FY22 Outlook
