US-based fashion retailer Hibbett has recorded net sales of $424.1m for the first quarter (Q1) of the fiscal year 2023 (FY23), down by 16.3% from to $506.9m in the corresponding period of FY22.

The company’s comparable sales for the 13 weeks to 30 April also dropped by 18.9% from last year, but grew by 22.9% against FY20.

During the quarter, comparable sales from Hibbett’s retail stores decreased by 22.0%, while the retailer’s e-commerce sales rose by 4.1% year-on-year.

Driven by the deleverage of its store occupancy, higher average product costs and increased freight and transportation costs, Hibbett’s gross margin was 37.0% of its net sales, 440 basis points lower than the 41.4% recorded a year earlier.

The company’s net income for the quarter declined to $39.3m from $84.8m a year earlier, while its earnings per share (EPS) were $2.89 against $5.00 in Q1 2022.

Hibbett president and CEO Mike Longo said: “During the first quarter, our team effectively executed our strategic plan and delivered comparable store sales and financial results in line with our expectations.

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“As we’ve previously discussed, our customers’ spending habits were affected by lower discretionary income due to the absence of stimulus payments received in the first quarter of last year.

“We are pleased to report that the supply chain disruption we experienced at the end of last year has improved and our current inventory position is strong and consistent with our forecast.”

For FY23, Hibbett expects its total net sales to be relatively flat in dollars compared with its FY22 results and has forecast EPS of between $9.75 and $10.50.

The retailer opened nine net stores during Q1, ending the quarter with 1,105 stores across 35 states.

It expects to open 30 to 40 stores over the rest of the year.