Hibbett Sporting Goods, Inc. reported that net sales for the 13-week period ended August 2, 2003 increased 8.8% to $71.7 million compared with $65.9 million for the 13-week period ended August 3, 2002. Comparable store sales increased 1.1% in the second quarter of fiscal 2004.
Net income for the second fiscal quarter increased 21.8% to $3.2 million compared with $2.7 million in the second fiscal quarter of last year. Earnings per diluted share increased 23.5% to $0.21 from $0.17 in the prior year.
Net sales for the 26-week period ended August 2, 2003, increased 10.7% to $151.3 million compared with $136.7 million for the 26-week period ended August 3, 2002. Comparable store sales increased 2.9% in the first half of fiscal 2004. Net income for the first half of fiscal 2004 increased 23.6% to $8.5 million compared with $6.9 million in the first half of fiscal 2003. Diluted earnings per share increased 22.2% to $0.55 from $0.45 in the prior year.
Hibbett opened 16 new stores and closed two stores during the second quarter, bringing the store base to 390 stores, and plans to open a total of approximately 55 to 60 new stores, net of store closings, in fiscal year 2004.
The per share results reported herein reflect the effect of the three-for-two stock split, which was distributed on July 15, 2003, to stockholders of record on June 27, 2003.
The Company also issued guidance for the third quarter ended November 1, 2003, of earnings per diluted share of approximately $0.24 to $0.26. The Company raised guidance for fiscal 2004 to approximately $1.10 to $1.12 per diluted share.
Mickey Newsome, President and Chief Executive Officer, stated, “This quarter's results are a testament to a great merchandising plan and disciplined expense control. We offset a lower-than-expected comparable store sales figure during the quarter by selling more merchandise at full price. The resulting higher product margins, lower inventories per store and continued leveraging of our corporate and distribution center expenses yielded a solid improvement in our operating margins. We were pleased with sales trends in the quarter even though we encountered tough comparisons from last year's clearance sales and the unseasonably wet weather. The apparel category was particularly strong during the quarter, led by pro licensed apparel. Looking ahead to the third quarter, we are encouraged by recent sales trends, an exciting merchandise assortment and a clean inventory position that allows us to make opportunistic buys.”
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
Unaudited Statements of Operations
(Dollars in thousands, except per share amounts)
13 Weeks Ended 26 Weeks Ended
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Aug. 2 Aug. 3, Aug. 2, Aug. 3,
2003 2002 2003 2002
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Net sales $71,731 $65,919 $151,324 $136,709
Cost of goods sold, including
warehouse, distribution, and
store occupancy costs 49,744 45,816 104,379 94,609
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Gross profit 21,987 20,103 46,945 42,100
Store operating, selling, and
administrative expenses 15,105 14,116 30,056 27,737
Depreciation and amortization 1,796 1,710 3,550 3,381
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Operating income 5,086 4,277 13,339 10,982
Interest (income) expense, net (20) 86 (43) 150
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Income before provision for
income taxes 5,106 4,191 13,382 10,832
Provision for income taxes 1,864 1,530 4,884 3,954
-------- -------- -------- --------
Net income 3,242 2,661 8,498 6,878
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Net Income per common share:
Basic earnings per share $0.21 $0.18 $0.56 $0.46
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Diluted earnings per share $0.21 $0.17 $0.55 $0.45
