Hibbett Inc. stock dropped 5% Friday morning, as the sporting goods retailer posted weaker-than expected fiscal first quarter earnings. It also cut its guidance because its customers are still struggling with high inflation rates and worry about the labor markets.

“Our consumers face a number headwinds, ranging from inflation to concern over job losses. ” Chief Executive Mike Longo made a statement. “Note that the total amount of average tax refunds was approximately 10% less than last year. This disproportionately affected our consumers and our sales during the first quarter.

He said that the company had a high level of inventory, which required heightened promotional activities.

The consumer is focusing on a smaller range of products. Longo said that the combination of these factors has been a major factor in our revised guidance for this fiscal year.

These numbers are very similar to those of Foot Locker Inc. FL, -1.30 %, and Nike Inc. NKE, -7.75 % ,, which suffered a rare downgrade to sell, on Monday, sending its stock to a 2023 new low.

Read Foot Locker stock plunges 22% after Q1 misses on top and bottom line, lower outlook

Dicks Sporting Goods Inc. , DKS, +1.20% is now the clear winner of the athletic market. Its customers are shopping more and spending more.

“Dick’s is continuing to trend better than other companies in the industry as the company continues to take share while maintaining much better margins than the past,” stated D.A. Davidson analysts Wednesday.

Analysts said that “while others in the industry are missing and guiding downward and still struggling with high inventories, [Dick]’s] strong vendors relations, which result in better and differentiating merchandising as well as a strong internal operation, continue to support two-digit profits.”

Hibbett (HIBB, +2.56%), based in Birmingham, Alabama, reported a net income of 35.9 million dollars, or 2.74 cents per share, for its first quarter ending April 29. This is down from the $39.3 million dollars, or 2.89 cents per share, it had posted the previous year. Sales increased 7.4% from $424.1 to $455.5.

FactSet’s consensus predicted a EPS of $3.00, and sales of $460 million.

The same-store sales increased by 4.1%. This was also lower than the FactSet consensus estimate of a 4.8% increase.

Gross margins dropped by 330 basis point, mainly due to a lower average product margin of 375 basis points in comparison with the previous year period. The company had to discount apparel and footwear.

Retailers are suffering as consumers become more inflation-weary. And it will get worse

The company now expects EPS for the full year to range between $7.00 and $7.55 versus prior guidance of $9.50 – $10.00. The company expects to see sales flat or up by 2% compared to previous guidance that indicated a growth in the mid-single figures.

Prior guidance had predicted a rise in the single digits for same-store sales. Gross margins will range between 33.9% and 34.0%, compared to prior guidance that was 34.9%-35.0%.

The S&P 500 , +0.88%, has gained 8% in the last year.

This is how Lowe’s wants rural customers to be targeted