Hibbett Sports, Inc. reported sales climbed 14.8% in the third quarter ended Oct. 30, to $167.4 million compared with $145.9 million a year ago. Comps ran up 12.5%. Net income jumped 43.5% to $12.6 million, or 44 cents a share, from $8.8 million, or 44 cents a year earlier. The retailer raised its guidance for the year and said it was accelerating store opening efforts next year.
Net sales for the 39-week period ended October 30, 2010, increased 15.3% to $491.7 million compared with $426.7 million the prior year. Comparable store sales increased 13.0%. Net income reached $33.9 million, or $1.16 a share, compared with $20.8 million, or 72 cents, a year earlier.
Jeff Rosenthal, president and chief executive officer, stated, “We are very excited about our performance over the last three quarters. Not only has Hibbett achieved three consecutive quarters of double digit comparable store sales growth, we have also experienced continued margin improvement. As a result, we are raising our earnings guidance for Fiscal 2011. In addition, we are accelerating our store opening plans for this year.”
In the third quarter, Hibbett opened 17 new stores and closed 2 stores, bringing the store base to 789 in 26 states as of October 30, 2010, including the Company's first store in South Dakota. For the full year Fiscal 2011, the company expects to open 40-42 new stores, compared to previous estimates of 30 new store openings. We also plan to expand 18 high performing locations and close 10 to 12 underperforming stores.
Liquidity and Stock Repurchases
Hibbett ended the third quarter of Fiscal 2011 with $52.5 million of available cash and cash equivalents on the consolidated balance sheet and no bank debt. At quarter end a year ago, the company had $24.8 million of available cash and cash equivalents with no bank debt.
During the third quarter, the company repurchased 1,034,000 shares of common stock for a total expenditure of $25.1 million, bringing the total shares repurchased year to date to 1,236,000 shares for a total expenditure of $30.1 million. Approximately $219.9 million of the current $250.0 million authorization remains for future stock repurchases as of the end of the third quarter of Fiscal 2011.
Fiscal 2011 Outlook
The company increased its earnings guidance for Fiscal 2011 to a range of $1.63 to $1.66 per diluted share, which equates to 47 cents to 50 cents per diluted share for the fourth quarter, and a mid-single-digit increase in comparable store sales for the fourth quarter.
|HIBBETT SPORTS, INC. AND SUBSIDIARIES|
|Unaudited Condensed Consolidated Statements of Operations|
|(Dollars in thousands, except per share amounts)|
|Thirteen Weeks Ended||Thirty-Nine Weeks Ended|
|October 30,||October 31,||October 30,||October 31,|
Cost of goods sold, distribution center and store occupancy costs
Store operating, selling and administrative expenses
|Depreciation and amortization||3,369||3,525||10,238||10,327|
|Interest expense, net||13||2||64||36|
|Income before provision for income taxes||20,074||13,942||54,181||33,404|
|Provision for income taxes||7,486||5,167||20,239||12,608|
|Net income per common share:|
|Weighted average shares outstanding:|