HIBB SHARES DROP 30% AFTER ISSUING PROFIT WARNING; CAUSE $2.5 BILLION LOSS IN SPORTING GOODS SECTOR
Hibbett Sports (HIBB), a regional sporting goods chain, issued a profit warning that its 100+ stores will report a 10% drop in same store sales, for the Q2 '17. The news sent HIBB shares tumbling 30% and caused the prices of several other sporting goods and sneaker retailers (FL, FINL, DKS, NKE, UAA) to plummet along with it, to a total shareholder loss of $2.5 Billion. The chain has recently launched, albeit a bit late, a new e-commerce platform that will integrate with its stores, in an attempt to stop the trend.
Howie Long-Short opines: It seems buying footwear online is becoming more and more accepted by consumers. And Hibbett (52% of sales from footwear) just realized they should, probably, have a website? Uh oh.
Fan Marino says: HIBB shareholders have to wonder what the marketing department has been up to since 2005.