Hibbett Sports’ stock slumps 32 percent on “very challenging” sales trends warning

The U.S. based sports apparel retailer Hibbett Sports Inc (HIBB.O) saw its shares dropped 32 percent on Monday after warning about how "very challenging" sales trends would affect its results.

The retailer estimated an increase of pressure on its gross margins based on a decline of about 10 percent in its comparable-store sales for the second quarter, ending on July, 29. "Despite the difficult retail environment, the company remains focused on improving its business for the long term," Hibbett Sports Chief Executive Jeff Rosenthal said in a statement.

As reported by Reuters, shares of the athletic apparel brand fell 6.37 dollars to 13.32 dollars right before the market close. Data gathered by Reuters reveal the stock has jumped about 64 percent so far this year.

Hibbett Sports wasn’t the only stock in this market feeling the hit as shares of rivals Foot Locker Inc (FL.N), Dick's Sporting Goods (DKS.N), Finish Line Inc (FINL.O) and Genesco Inc (GCO.N) all fell more than 4 percent. "The fashion has changed, the consumer is less interested, judging based on the results of these companies," said Quo Vadis Capital analyst John Zolidis commenting this news.

Hibbett Sports operates about 1,000 stores in the U.S. South, Southwest, Mid-Atlantic and Midwest.