Hibbett Sports Inc. reported net sales for the 13-week
period ended Nov. 1, 2014, increased 5.0 percent to $218.3 million thants to the opening of a record 26 stores during the period and flattish same-store sales. The retailer reported net sales of $208.0 million for the 13-week period ended Nov. 2, 2013.
Hibbett reported comparable store
sales for the recent quarter increased 0.6 percent.
“We were pleased
with our performance during the back-to-school season, with an acceleration of
comparable store sales in August against high single-digit comps in the prior
year,” said Hibbett President and CEO Jeff Rosenthal. “This improvement was offset by weaker comps in October. However, we have
seen an improved sales trend in early November with the onset of colder weather in
many of our markets. Our new store growth continues to be robust, with the
opening of a record 26 stores in the third quarter. We are on track to achieve
our goal of 75 to 80 new store openings for the year. As we look ahead to the
holiday season, we are confident that our product selection and inventory
levels are in a good position to drive solid performance.
Gross profit was 36.3 percent of net sales compared with 36.8 percent for the 13-week period ended Nov. 2, 2013. The
decline was mainly due to markdowns related to slow selling and aged inventory.
Gross profit was also affected by store occupancy costs, as these expenses
increased as a percentage of net sales due to higher store openings and the effect of lower comparable store sales.
Store operating, selling and administrative expenses were 22.1 percent of net sales, compared with 21.9 percent of net
sales for the 13-week period ended Nov. 2, 2013. These expenses were higher as
a percentage of net sales mainly due to the deleveraging effect of lower
comparable store sales.
Net income reached $16.9 million, down 2.3 percent compared with $17.3 million for the 13-week period ended Nov. 2, 2013. Earnings
per diluted share was $0.67 for the 13-week period ended Nov. 1, 2014, compared
with $0.66 for the 13-week period ended Nov. 2, 2013.
Fiscal Year to Date Results
Net sales for the 39-week period ended Nov. 1, 2014, increased 6.3 percent to
$674.1 million compared with $634.2 million for the 39-week period ended Nov.
2, 2013. Comparable store sales increased 1.9 percent.
Gross profit was 35.9 percent of net sales for the 39-week period ended Nov. 1,
2014, compared with 36.5 percent for the 39-week period ended Nov. 2, 2013.
Store operating, selling and administrative expenses were 21.3 percent of net
sales for the 39-week period ended Nov. 1, 2014, compared with 21.2 percent of
net sales for the 39-week period ended Nov. 2, 2013.
Net income for the 39-week period ended Nov. 1, 2014, was $53.7 million
compared with $54.0 million for the 39-week period ended Nov. 2, 2013. Earnings
per diluted share increased to $2.08 for the 39-week period ended Nov. 1, 2014,
compared with $2.05 for the 39-week period ended Nov. 2, 2013.
For the quarter, Hibbett opened 26 new stores, expanded 2 high performing stores
and closed 7 underperforming stores, bringing the store base to 969 in 31
states as of Nov. 1, 2014. Estimated square footage for the store base
increased 6.5 percent to approximately 5.6 million square feet at Nov. 1, 2014,
compared with 5.2 million square feet at Nov. 2, 2013.
Liquidity and Stock Repurchases
Hibbett ended the third quarter of Fiscal 2015 with $71.5 million of available
cash and cash equivalents on the unaudited consolidated balance sheet, no bank
debt outstanding and full availability under its $80.0 million unsecured credit
facilities.
During the third quarter, the company repurchased 371,589 shares of its common
stock for a total expenditure of $16.7 million. Approximately $179.7 million of
the total authorization remained for future stock repurchases as of Nov. 1,
2014.
Fiscal 2015 Outlook
The company is raising its guidance for the 52 weeks ending Jan. 31, 2015,
to earnings per diluted share in the range of $2.72 to $2.77. This compares to
previous guidance of earnings per diluted share in the range of $2.63 to $2.73.
The Company also reaffirms an expected increase in comparable store sales in
the low single-digit range.
| HIBBETT SPORTS, INC. AND SUBSIDIARIES |
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Unaudited Condensed Consolidated Statements of Operations |
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(Dollars in thousands, except per share amounts) |
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Thirteen Weeks Ended |
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Thirty-Nine Weeks Ended |
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Net sales |
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$ |
218,321 |
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$ |
207,971 |
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$ |
674,148 |
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$ |
634,198 |
Cost of goods sold, including wholesale, logistics and store occupancy costs |
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139,171 |
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131,483 |
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432,394 |
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402,907 |
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Gross profit |
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79,150 |
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76,488 |
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241,754 |
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231,291 |
Store operating, selling and administrative expenses |
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48,202 |
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45,496 |
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143,778 |
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134,251 |
Depreciation and amortization |
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4,136 |
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3,549 |
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11,777 |
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10,193 |
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Operating income |
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26,812 |
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27,443 |
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86,199 |
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86,847 |
Interest expense, net |
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73 |
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55 |
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216 |
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142 |
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Income before provision for income taxes |
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26,739 |
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27,388 |
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85,983 |
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86,705 |
Provision for income taxes |
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9,849 |
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10,138 |
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32,324 |
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32,700 |
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Net income |
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$ |
16,890 |
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$ |
17,250 |
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$ |
53,659 |
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$ |
54,005 |
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Net income per common share: |
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Basic earnings per share |
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$ |
0.67 |
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$ |
0.67 |
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$ |
2.10 |
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$ |
2.09 |
Diluted earnings per share |
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$ |
0.67 |
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$ |
0.66 |
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$ |
2.08 |
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$ |
2.05 |
