Hibbett Post Slight Comp Gain on Strong April

Comparable store sales increased 2.3% in February, but fell 8% in March, with the Easter shift accounting for two percentage points of the month’s decline. In April, comps jumped 10%, or 6% without the benefit of the extra selling day.

For the quarter, non-urban stores once again outperformed urban stores. Non-urban comps increased approximately 1%, but urban stores were negative approximately 1% for the period.  Urban stores, which currently account for approximately 300 of the company’s stores, saw apparel doing slightly worse than footwear for the quarter.  The urban decline, however, was a sequential improvement over the trend of recent quarters.  Strip centers outperformed enclosed mall stores, with mall stores down approximately 2% and strip center stores up approximately 1.5%

Average unit price decreased 3% for the quarter, with management noting that they sold “a lot more comp store units, which could indicate we're gaining some market share.”  They further surmised that big ticket items are probably a little softer than would be ideal.  Traffic increased for the quarter, especially in April.  High-end footwear was said to have done well.

For the first 19 days of May, the retailer saw positive comps in the mid-single-digit range with footwear and apparel both up, but equipment down.  For the same period last year, comparable store sales were running down approximately 2%.

Branded activewear comps were up in mid-single-digits, with men's, women's, and youth all up. Urban lifestyle apparel still remained tough.  In youth apparel, both boys and girls were up double-digits, with Under Armour and Nike called out as brands leading the charge.  In licensed, college was up in the single-digits, but pro was down single-digits, going against tough comparison from a Colts/Bears Super Bowl from a year ago.

Footwear was up in the single-digits with men's, women's and youth all up. Youth was up the high-single-digits despite going against Heelys from a year ago.  The cleated business was described as “tough in February,” but up in April and May. Nike Shox, Air Force 1, Jordan, adidas Bounce, Asics technical running, DC Shoes, and the Under Armour crosstraining shoes were all called out as key drivers for footwear.

Speaking of the UA launch, management said it hit expectations with sell-through pretty satisfactory in the approximately 300 doors that introduced the product.  Sales for the category are expected to pick up for back-to-school with HIBB carrying the product in approximately 400 doors then. Classics remained soft.

Crocs was described as slightly down from last year’s level, though not as a major factor on Hibbett’s business.

Of the other major footwear introduction in the last two years, management said it was comfortable with its ability to comp against Heelys as well, noting that they are comping positively now. The Heelys business sees an easier comp as the year carries forward.

Equipment was down double-digits for the quarter, but with an improvement in April and early May. Football and the soccer business are off to good starts in May, which is a big part of the hardgoods business in second quarter.  Management said that though equipment was down, for the most part pricing was not an issue. The only product called out as difficult were baseball bats in the $300 to $400 range. This development is a reversal of the previous trend for the product in general as consumers the last few years sought either the absolute top or the absolute bottom of the scale for baseball bats.

The company opened 14 stores and closed three during the quarter to end the period with 699 stores, a 12.7% increase versus last year.
HIBB is reaffirming its earnings outlook for the fiscal year ended January 31, 2009 at 88 cents to $1.00 per diluted share, based on comparable store sales ranging between flat to down 3%.