Hibbett Sports Inc. stock HIBB, -4.38% fell more than 3% Monday, adding to Friday's 9% loss, after Canaccord downgraded it to hold from buy following disappointing second-quarter earnings and lowered guidance. Analyst Camilo Lyon lowered her stock price target to $21 from $31. "The higher-than-expected SG&A growth was a result of higher advertising, omni-channel, and healthcare costs during the quarter, many of which are likely to weigh on second-half EPS as well," Lyon wrote in a note. SG&A costs rose 15.7% in the quarter, compared with her forecast of 10.7%. Accessories, licensed products and team sports fell short of expectations, offsetting in-line branded apparel and footwear, she wrote. That deterioration, coupled with the higher SG&A expense profile, "is creating a more subdued earnings profile with less upside potential," said the note. "With this backdrop, HIBB has become a "show me" stock and will likely not get multiple expansion until it proves it can create consistency in its results." Hibbett shares have fallen 3.1% in 2018, while the S&P 500 SPX, +0.76% has gained 8.4%.
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