Hibbett Sports Inc. reported net sales increased 9.1 percent to $261.9 million for the 13-week period ended May 3, 2014, compared with the fiscal first quarter ended May 4, 2013.

The retailer, which operates from more 5,000-square-foot stores in small to mid-sized markets across the South, Southwest, Mid-Atlantic and Midwest regions reported comparable store sales increased 4.1 percent. It ended the quarter with 939 stores, or 60 more than May 4, 2013.
Gross margin reached 37.5 percent, down 40 basis points from the 13-week period ended May 4, 2013.
 
Store operating, selling and administrative expenses were 18.7 percent of net sales, compared with 18.8 percent of net sales for the year ago quarter.
 
Net income reached $28.4 million compared with $26.2 million for the 13 weeks ended May 4, 2013. Earnings per diluted share increased 9 cents to $1.09.
 
“We were pleased with sales during the first quarter, which were driven by strong demand in our core footwear and brand focused apparel businesses,” Jeff Rosenthal, president and CEO, “In addition, we opened a record number of new stores and fully converted operations to our new wholesale and logistics facility. Looking forward, the continued success of new stores and the efficiencies of our new wholesale and logistics facility will be a catalyst for sustained, profitable growth for the company.”
 
Fiscal 2015 Outlook
Hibbett Sports also issued its initial guidance for Fiscal 2015, including:
• Earnings per diluted share in the range of $2.78 to $2.98;
• Increase in comparable store sales in the low-to-mid single digit range;
• Approximately 75 to 80 new stores, 10 to 15 expansions and 15 to 20 closures;
• Flat to slightly positive product gross margin rate compared to Fiscal 2014;
• An estimated $0.11 per diluted share impact from additional costs related to the transition to the new wholesale and logistics facility, ongoing operational costs after opening, and increased depreciation; and
• Increase in SG&A expense as a percent of sales due to increased health care costs (estimated $0.02 per diluted share), as well as increases in marketing and IT costs.
 

 

HIBBETT SPORTS, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

Thirteen Weeks Ended
May 3, 2014 May 4, 2013
Net sales $ 261,909 $ 239,993
Cost of goods sold, including wholesale, logistics and store occupancy costs 163,713 149,116
Gross profit 98,196 90,877
Store operating, selling and administrative expenses 48,952 45,113
Depreciation and amortization 3,580 3,325
Operating income 45,664 42,439
Interest expense, net 73 45
Income before provision for income taxes 45,591 42,394
Provision for income taxes 17,203 16,180
Net income $ 28,388 $ 26,214
Net income per common share:
Basic earnings per share $ 1.10 $ 1.01
Diluted earnings per share $ 1.09 $ 1.00
Weighted average shares outstanding:
Basic 25,846 25,906
Diluted 26,131 26,328
Thirteen Weeks Ended
May 3, 2014 May 4, 2013

Sales Information
Net sales increase 9.1 % 3.0 %
Comparable store sales increase 4.1 % 0.8 %

Store Count Information
Beginning of period 927 873
New stores opened 16 9
Stores closed (4 ) (3 )
End of period 939 879
Stores expanded 4 5
Estimated square footage at end of period (in thousands) 5,408 5,054

Balance Sheet Information
Average inventory per store $ 219,742 $ 233,782