Hibbett Sporting Goods, Inc. reported net sales for the 13-week period ended January 31, 2004 increased 20.8% to $91.2 million compared with $75.5 million for the 13-week period ended February 1, 2003. Comparable store sales increased 8.3% in the fourth quarter of fiscal 2004. Net income for the fourth fiscal quarter increased 41.3% to $6.5 million compared with $4.6 million in the fourth fiscal quarter of last year. Earnings per diluted share increased 36.7% to $0.41 from $0.30 in the prior year. Excluding earnings of $0.02 per diluted share attributable to the sale of a leasehold interest in the prior-year period, the Company's earnings were $0.28 per diluted share for the fourth quarter of fiscal 2003.
Net sales for the 52-week period ended January 31, 2004, increased 15.0% to $321.0 million compared with $279.2 million for the 52-week period ended February 1, 2003. Comparable store sales increased 5.3% in fiscal 2004. Net income for fiscal 2004 increased 38.1% to $20.3 million compared with $14.7 million in fiscal 2003. Diluted earnings per share increased 34.4% to $1.29 from $0.96 in the prior year. Excluding earnings of $0.02 per diluted share attributable to the favorable lease disposition in the fourth quarter of fiscal 2003, the Company's earnings were $0.94 per diluted share for the 2003 fiscal year.
Hibbett opened 24 new stores during the fourth quarter. For the year, the Company opened 65 stores and closed eight, bringing the store base to 428 stores. Hibbett expects to open approximately 65 new stores, net of store closings, in fiscal 2005.
Mickey Newsome, Chairman, President and Chief Executive Officer, stated, “We are pleased to see all three of our merchandise categories performing well and establishing good momentum heading into the first quarter. The record sales we achieved during the fourth quarter led to another record for operating margins. For the first time as a public company our quarterly operating margin exceeded 11%, a 150-basis point improvement over the prior year. The full year margin reached 9.95%, its highest level ever. Consistent with a trend we have cited throughout much of the year, we again sold more merchandise at full price and relied less on clearance resulting in a year-over-year improvement in product margin. Leveraging occupancy costs and warehouse efficiencies generated the balance of the improvement as we were able to more than offset the one-time gain from lease dispositions a year ago.”
Three-for-Two Stock Split
Hibbett also announced that its Board of Directors has approved a three-for-two stock split. The stock split will be effected in the form of a 50% stock dividend, and the new shares will be distributed on or about April 16, 2004, to stockholders of record on April 1, 2004. Following the effective date of the split, the Company will have approximately 23,300,000 shares of common stock outstanding, 1,324,702 shares which may be issued upon the exercise of outstanding options and 810,149 which may be issued upon the exercise of options which may be granted in the future under the Company's stock option plans or issued in the future under the Company's stock purchase plan.
Fiscal 2005 Outlook
The Company issued guidance for the year ending January 29, 2005, of earnings per diluted share of approximately $1.52 to $1.56 and a comparable store sales increase in the range of 4% to 5%. For the first quarter ending May 1, 2004, the Company expects to report earnings per diluted share of approximately $0.45 to $0.47 and a comparable store sales increase in the range of 5% to 6%.
Mr. Newsome added, “Our guidance for fiscal 2005 projects an earnings increase of approximately 20% for the year. Given the strong results in the second half of fiscal 2004, we believe it is prudent to expect at this point in time that second half comparable sales results will be closer to our historical range of 3% to 4%. We have considerable sales momentum to start the year, and we expect to provide a better view of the second half as the year progresses.”
The per share results reported herein reflect the effect of the three-for-two stock split that was distributed on July 15, 2003, to stockholders of record on June 27, 2003.
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
UNAUDITED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Per Share Amounts)
Jan. 31, Feb. 1, Jan. 31, Feb. 1,
2004 2003 2004 2003
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(13 Weeks)(13 Weeks)(52 Weeks)(52 Weeks)
Net sales $91,222 $75,473 $320,964 $279,187
Cost of goods sold, including
warehouse, distribution, and
store occupancy costs 62,216 52,369 218,565 193,383
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Gross profit 29,006 23,104 102,399 85,804
Store operating, selling, and
administrative expenses 16,943 14,076 63,194 55,529
Depreciation and amortization 1,897 1,753 7,267 6,866
-------- -------- -------- --------
Operating income 10,166 7,275 31,938 23,409
Interest expense, net (31) 42 (106) 214
-------- -------- -------- --------
Income before provision for
income taxes 10,197 7,233 32,044 23,195
Provision for income taxes 3,722 2,640 11,696 8,466
-------- -------- -------- --------
Net income $6,475 $4,593 $20,348 $14,729
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Net Income per common share:
Basic earnings per share $0.42 $0.30 $1.33 $0.98
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Diluted earnings per share $0.41 $0.30 $1.29 $0.96
