Hibbett Sports (HIBB) financial results have come out with better than expected earnings for the fiscal 2017 first quarter.

Revenue for the first quarter was $282.09 million which is 4.6% higher to year on year data. This is below expectations for analysts who were projected revenue to be at $285.15 million. Compare to 0.9% decline in net sales last year this year store sales increased 1.1%.

The Birmingham-Al based company has posted $1.22 profit per share for the quarter ended 30th April, 2016. Company’s performance has beaten analysts expected earnings per share of $1.20 Due to heavy trading in company’s stock, share price zooms to $34.62 making gains of 7.32%. Volumes of trades today were $1.52 million shares which are more than thrice its average trading volumes of 442,190 shares.

HIBB’s CEO Jeff Rosenthal replied to correspondent that, “During the quarter, we showed improved performance in our apparel assortment and believe that our strategy is gaining traction in this area.” He also stated that, “Footwear also posted results, driven by strong performance in our life style category.”

The Street Ratings has given “Hold” to company’s stock and grade ‘C’ because of its revenue growth, sound financial position with reasonable amount to debt to pay which made poor cash flow to compensate, lower profit margins and average stock performance. The Street Ratings have objectively rated stock based on its past 12 month’s data and not to any particular day.

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The results came just after another companies like Pittsburgh based Dick’s sporting goods Inc. and Foot Locker Inc. reported strong sales as expected by Wall Street experts.

Hibbett’s sales come from 1,053 stores across 33 states and company mainly operates in shopping centers. Company mainly focuses on usually in small to mid size market in U.S., it has opened 17 new stores and closed 8 stores during the corresponding period. Hibbett’s profit margin slightly moved upwards to 37.2% from 37%.

Analysts forecasts earnings per share to $2.98 during the year. Stock of the company which rose 6.7% this year is still below 29% from last year’s price.

Hibbitt is no exception in sports goods category like others who faces over saturation of brick and mortar stores. There are so many stores and very few customers to buy sports goods.

Excessive store growth rate is one of the concern areas for sports goods industries retail players like Hibbitt and Dick’s sporting goods.

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There is a hefty competition among sports goods players, putting pressure on margins and sales. Company operates in primarily in South, South West, Mid Atlantic, and Mid West regions of United States. Hibbitt’s stores offers athletic foot wares, team sports equipment, athletic and fashion apparel and related accessories to its customers. The company also sells merchandise directly to educational institutions and youth associations. The company also operates 20 Sports Additions athletic shoe stores. The Hibbitt Sports Inc. was founded in 1945 and based in Birmingham, Alabama.

The company released its results of operation for thirteen week ended on April, 30, 2016 in a press release issued on May 20th, 2016.