Hibbett shares dip after analyst downgrade
Shares of Hibbett Sports (Nasdaq: HIBB) fell June 25 after an analyst downgraded the company on sales concerns.
Raymond James analyst Dan Wewer lowered his rating on Hibbett from "strong buy" to "outperform," saying the company needs to improve its sales performance and earnings prospects. Hibbett's same-store sales have been softening.
He wrote in a client note that Raymond James is "advising investors to take a longer time horizon with Hibbett" given the uncertainty with its same-store sales outlook and overall tepid demand for discretionary products.
Shares of Hibbett dipped as low as $17.23 on June 25 to close at $17.45, $0.55 lower than the day before.
Sport Chalet Q4 sales drop 12.7 percent, reports loss
For both the fourth quarter and FY 2009, Sport Chalet (Nasdaq: SPCHA and SPCHB) reported decreases in sales as well as a net loss hurt by "macro economic conditions."
For the fourth quarter ended March 29, sales fell 12.7 percent to $84.5 million versus $96.8 million for the fourth quarter of fiscal 2008.
The company said four new stores not included in same-store sales contributed $3.8 million in sales for the quarter while same-store sales decreased 17.7 percent. It added that same-store sales were negatively impacted primarily by a warm January compared to previous year, which impacted the demand for winter-related merchandise.
Net loss for the fourth quarter was $11.1 million, or $0.79 per diluted share, compared to a net loss of $2.8 million, or $0.20 per diluted share, in 2008.
For the fiscal year, sales decreased 7.4 percent to $372.7 million from $402.5 million for fiscal 2008. Sales from 11 new stores not included in same-store sales contributed $16.2 million to total sales for fiscal 2009, it said. Same-store sales decreased 12.4 percent for the fiscal year.
Net loss for the year was $52.2 million, or $3.70 per diluted share, including a non-cash impairment charge and income tax valuation allowance recorded in the third quarter, compared to a net loss of $3.4 million, or $0.24 per diluted share, in fiscal 2008.
Excluding the non-cash impairment charge and valuation allowance, Sport Chalet said net loss for fiscal 2009 was $35.6 million, or $2.53 per diluted share. This compares to a net loss of $2.1 million, or $0.15 per diluted share, in fiscal 2008, which excludes a non-cash impairment charge in the third quarter of fiscal 2008.
Finish Line swings to Q1 loss
With sales down more than 7 percent, The Finish Line (Nasdaq: FINL) also reported a loss for its first quarter. The company said its unprofitable Man Alive business was mainly to blame and it is selling off those assets.
For the quarter ended May 30, Finish Line posted a loss of $608,000, or $0.01 per share, compared to a profit of $868,000, or $0.02 per share, last year.
Total sales fell more than 7 percent to $267.2 million from $287.9 million. Finish Line store sales decreased about 5 percent, while Man Alive sales dropped 45.5 percent for the quarter.
"Our core Finish Line business has performed as expected against the backdrop of a challenging economy and a difficult comparison to the same quarter of last year," Glenn Lyon, CEO of the company, said in a statement.
Previously announced that it is exiting the Man Alive business, the company said it will pay $7 million in cash to Man Alive Acquisition LLC, which is controlled by Jimmy Jazz stores owner and operator Jimmy Khezrie, to take certain assets and liabilities. The agreement includes Man Alive's 75 retail stores under the Man Alive and Decibel names as well as their trademarks and trade names.
--Compiled by Wendy Geister
For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.