Hibbett, Inc. (Nasdaq/GS: HIBB) has announced the completion of its acquisition by JD Sports Fashion plc, effective July 25, 2024. As a result, Hibbett will no longer be a stand-alone publicly traded company. Mike Longo will continue as President and CEO, while Jared Briskin will become Chief Operating Officer. The company will maintain its headquarters in Birmingham, Alabama.
Hibbett, with 1,169 stores across 36 states, is known for its athletic-inspired fashion retail. The acquisition is expected to provide significant growth opportunities through strong vendor relationships, an omni-channel platform, and efficient supply chain operations. JD Sports Fashion plc, founded in 1981, is a global omnichannel retailer of sports fashion brands, focusing on athleisure fashion and delivering products from established and new brands.
Hibbett reported its first quarter fiscal 2025 results, with net sales decreasing by 1.8% to $447.2 million and comparable sales down by 5.8%. The diluted EPS was $2.67, down from $2.74 in the prior year. Gross margin improved to 35.8% due to higher product margins.
However, SG&A expenses increased to 23.7% of net sales, largely due to inflation and transaction-related fees. The quarter ended with a net income of $32.5 million. Hibbett also announced a pending acquisition by JD Sports, with shareholders set to receive $87.50 per share. The transaction is expected to close in the second half of 2024.
Hibbett, an athletic-inspired fashion retailer, will release its first-quarter 2025 earnings on June 5, 2024, before market hours. With 1,169 stores across 36 states, Hibbett offers a variety of top brand products, including Nike, Jordan, and adidas. This announcement will not be followed by a conference call or webcast.
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