Hibbett Sporting Goods, Inc. announced results for the first quarter ended April 30, 2005, in which net sales increased 19.0% to $114.8 million compared with $96.5 million for the 13-week period ended May 1, 2004. Comparable store sales increased 8.2% in the first quarter of fiscal 2006.
Net income for the first fiscal quarter increased 33.9% to $10.7 million compared with restated net income of $8.0 million in the first fiscal quarter of last year. Earnings per diluted share increased 39.4% to 46 cents compared with restated earnings of 33 cents in the prior year.
Comparable store net sales data reflects sales for the Hibbett Sports and Sports Additions stores open through the 13-week period and the corresponding period of the prior fiscal year.
Hibbett opened 15 new stores and closed 4 stores during the first quarter, bringing the store base to 493 in 22 states as of April 30, 2005. The company plans to open a net of approximately 73 new stores in fiscal 2006, including a net of 16 to 19 stores in the second quarter.
Mickey Newsome, chairman, president and chief executive officer, stated, “We are pleased to exceed the $100 million mark in revenue for the second consecutive quarter. Footwear and team equipment led the way once again with double-digit and high single-digit increases, respectively. The performance footwear category continues to show positive momentum with the strongest increases in ladies and youth. Although the apparel category remains below prior-year periods, we saw several bright spots with ladies activewear, technical apparel and urban brands.
“We have remained focused on translating this continued sales growth into much higher earnings growth. The first quarter is another example of our continued improvement in operating margin. With an approximate 150-basis point increase to 14.6% of sales in the quarter, we benefited from improved product margin due to increased sell through and a reduction in aged inventory. We were also able to again leverage occupancy, operating and administrative costs.”
Fiscal 2006 Outlook
For the second quarter ending July 30, 2005, the company expects to report earnings per diluted share of approximately 17 cents to 21 cents and a comparable store sales increase in the mid single-digit range compared with restated earnings of 12 cents per diluted share in the prior-year period. Guidance for fiscal 2006 is estimated at approximately $1.32 to $1.38 per diluted share and a comparable store sales increase in the mid single-digit range.
Mr. Newsome added, “Based upon the strong growth in earnings and comparable store sales in the quarter, we believe fiscal 2006 will be another record year for Hibbett. Footwear and team equipment are posting very positive trends because of exceptional product, presentation and customer service. With the anniversary of the decline in licensed apparel in the second quarter, we expect apparel to begin contributing to our overall performance in the second half of the year along with continued year-over-year improvement in gross and operating margins from very efficient logistics and store operations.”
Stock Repurchase
In August 2004, the board of directors authorized the repurchase of up to $30.0 million of the company's common stock. In November 2004, the board of directors increased this maximum authorization to $40.0 million. During the first quarter, the company repurchased 16,000 shares bringing the total shares repurchased to 861,400 shares for a total expenditure of approximately $19.5 million.
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
Unaudited Statements of Operations
(Dollars in thousands, except per share amounts)
First Quarter Ended
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(as restated)
April 30, May 1,
2005 2004 (1)
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Net sales $114,823 $96,519
Cost of goods sold, including warehouse,
distribution, and store occupancy costs 75,283 64,258
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Gross profit 39,540 32,261
Store operating, selling, and administrative
expenses 20,282 17,171
Depreciation and amortization 2,454 2,425
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Operating income 16,804 12,665
Interest income, net 319 74
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Income before provision for income taxes 17,123 12,739
Provision for income taxes 6,421 4,745
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Net income $10,702 $7,994
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Net Income per common share:
Basic earnings per share $0.47 $0.34
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Diluted earnings per share $0.46 $0.33
