Hibbett Sporting Goods, Inc. reported that net sales for the third quarter ended October 30 increased 17.5% to $92.1 million compared with $78.4 million for year-ago period. Comparable store sales increased 5.4% in the third quarter of fiscal 2005. Net income for the third fiscal quarter increased 16.5% to $6.3 million compared with $5.4 million in the third fiscal quarter of last year. Earnings per diluted share increased 13.0% to $0.26 compared with $0.23 in the prior year.

Net sales for the 39-week period ended October 30, 2004, increased 17.8% to $270.5 million compared with $229.7 million for the 39-week period ended November 1, 2003. Comparable store sales increased 5.6% in the first nine months of fiscal 2005. Net income for the first nine months of fiscal 2005 increased 25.1% to $17.4 million compared with $13.9 million in the nine months of fiscal 2004. Earnings per diluted share increased 22.0% to $0.72 from $0.59 in the prior year.

Comparable store net sales data reflects sales for our Hibbett Sports and Sports Additions stores open through the 13-week and 39-week periods and the corresponding periods of the prior fiscal year.

Hibbett opened 21 new stores and closed 2 stores during the third quarter, bringing the store base to 468 as of October 30, 2004. Included in these store openings were two stores in New Mexico. The Company plans to open a total of approximately 18 to 22 new stores in the fourth quarter for a total of 58 to 62 new stores, net of store closings, in fiscal 2005.

Mickey Newsome, Chairman, President and Chief Executive Officer, stated, “Our sales trends were consistently strong throughout the third quarter. As expected, footwear and team equipment were our best categories with double-digit sales increases while the apparel and accessories category was below prior-year levels. Footwear benefited from the sale of higher end technical product, as well as sales of classics. Football was our top performer in team equipment as we continued to reap the rewards of the emphasis we made to significantly improve this category. With our continued focus on team equipment, hot technical and classic footwear lines, and strong sales growth at both new and comparable stores, we believe we are positioned to continue to produce the sales and financial performance our shareholders have grown to expect from Hibbett Sporting Goods.”

Fiscal 2005 Outlook

For the fourth quarter ending January 29, 2005, the Company expects to report earnings per diluted share of approximately $0.27 to $0.30 and a comparable store sales increase in the range of 2% to 3% compared with earnings of $0.27 per diluted share in the prior-year period. Guidance for fiscal 2005 is estimated at approximately $.99 to $1.02 per diluted share and a comparable store sales increase in the range of 4% to 5% compared with earnings of $0.86 per diluted share in fiscal 2004.

Mr. Newsome added, “Based on our merchandising plan for the quarter, our clean inventory position and positive sales trends to date in the fourth quarter, we expect and are optimistic that the holiday season will be successful. We now expect to report earnings per share growth in the range of 15% to 19% for the year.”

The per share results reported for all periods presented herein reflect the effect of the three-for-two stock split that was distributed on April 16, 2004, to stockholders of record on April 1, 2004.

Stock Repurchase

In August, the Board of Directors authorized the repurchase of up to $30 million of the Company’s common stock. On November 18, 2004, the Board of Directors increased this maximum authorization to $40 million. During the third quarter, the Company repurchased 365,400 shares for a total expenditure of approximately $7.2 million.

Director Compensation

On November 18, 2004, the Board of Directors voted to increase the annual fee paid to each director from $18,000 to $25,000. An additional annual fee of $5,000 was also approved to be paid to the chairman of the audit committee. All other compensation paid to directors remains unchanged. 

             HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
                  Unaudited Statements of Operations
           (Dollars in thousands, except per share amounts)

                           13 Weeks Ended          39 Weeks Ended
                       ---------------------- ------------------------
                       October 30, November 1, October 30, November 1,
                          2004        2003        2004         2003
                       ----------- ---------- ------------ -----------
Net sales                 $92,139    $78,418     $270,453    $229,742
Cost of goods sold,
 including warehouse,
 distribution, and
 store occupancy costs     61,710     51,971      184,615     156,349
                       ----------- ---------- ------------ -----------
     Gross profit          30,429     26,447       85,838      73,393
Store operating,
 selling, and
 administrative
 expenses                  18,718     16,194       52,912      46,251
Depreciation and
 amortization               1,877      1,820        5,576       5,370
                       ----------- ---------- ------------ -----------
     Operating income       9,834      8,433       27,350      21,772
Interest income               147         33          309          75
                       ----------- ---------- ------------ -----------
Income before
 provision for
 income taxes               9,981      8,466       27,659      21,847
Provision for income
 taxes                      3,718      3,090       10,303       7,974
                       ----------- ---------- ------------ -----------
     Net income             6,263      5,376       17,356      13,873
                       =========== ========== ============ ===========
Net Income per common
 share:
     Basic earnings
      per share             $0.27      $0.23        $0.74       $0.60
                       =========== ========== ============ ===========
     Diluted earnings
      per share             $0.26      $0.23        $0.72       $0.59