Here's Why Hibbett Stock Soared Today
Shares of athletic retailer Hibbett (NASDAQ: HIBB) soared on Friday following the report of relatively strong financial results for its fiscal second quarter of 2024. Both revenue and profits were down, but not as much as the market had feared. And that's why Hibbett stock was up 20% as of 11:30 a.m. ET.
The athletic retail space is generally slowing down right now, so investors already had low expectations for Hibbett. And true to the general slowdown, Hibbett reported net sales of about $375 million in Q2 (which ended in July) -- almost a 5% drop year over year.
Net sales might have fallen even more for Hibbett, but management stimulated demand as much as possible by offering promotional discounts. The flip side of this strategy, however, is that it hurts profit margins. Accordingly, the company's net income fell from $24.7 million in the prior-year period to $10.9 million in Q2.
Source Fool.com
