Hibbett Q1 Net Income Jumps 53.4% on 8.8% Comp Sales Gain

Hibbett Sporting Goods, Inc. reported that net sales for the 13-week period ended May 1, 2004 increased 21.3% to $96.5 million compared with $79.6 million for the 13-week period ended May 3, 2003. Comparable store sales increased 8.8% in the first quarter of fiscal 2005.

Net income for the first fiscal quarter increased 53.4% to $8.1 million compared with $5.3 million in the first fiscal quarter of last year. Earnings per diluted share increased 47.8% to $0.34 from $0.23 in the prior year.

Hibbett opened eight new stores and closed three stores during the first quarter, bringing the store base to 433. The Company plans to open a total of approximately 65 new stores, net of store closings, in fiscal 2005.

Mickey Newsome, Chairman, President and Chief Executive Officer, stated, “Consistent with the trends we experienced in the fourth quarter, we posted positive comparable store sales in all three merchandise categories this quarter. Continued growth in licensed, performance and urban-influenced products produced low double-digit comparable sales in apparel while strength in ladies and kids led to mid-single-digit comparable increases in footwear. Similarly, hard goods yielded a low single-digit increase due to improvement in team equipment sales.

“The strong sales results, combined with improved product margins and a lower level of markdowns, led to the highest quarterly operating margin in our history at 13.2%. While it would be unrealistic to expect we could sustain such a dramatic sequential improvement in our operating margin throughout the year, we expect to continue to show significant year-over-year improvement in our margins.”

For the second quarter ending July 31, 2004, the Company expects to report earnings per diluted share of approximately $0.18 to $0.20 and a comparable store sales increase in the range of 5% to 6%. Guidance for fiscal 2005 is estimated at approximately $1.06 to $1.09 earnings per diluted share and a comparable store sales increase in the range of 5% to 6%.

Newsome added, “Although we had expected second half sales momentum to ease a bit as we lapped strong sales results from a year ago, we have yet to see that pace abate to any degree. In addition, our operating results continue to reflect the benefits of our small market strategy, a high level of store and support center operational excellence, greater allocations of the top apparel and footwear brands and a wealth of new store growth opportunities. Based upon this strong start, we are very optimistic about the year ahead of us in fiscal 2005.”

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.

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

                                                   First Quarter Ended
                                                   -------------------
                                                    May 1,     May 3,
                                                     2004       2003
                                                   --------   --------
Net sales                                           $96,519    $79,593
Cost of goods sold, including warehouse,
 distribution, and store occupancy costs             64,788     54,634
                                                   --------   --------
  Gross profit                                       31,731     24,959
Store operating, selling, and
 administrative expenses                             17,119     14,952
Depreciation and amortization                         1,841      1,754
                                                   --------   --------
  Operating income                                   12,771      8,253
Interest income, net                                     74         23
                                                   --------   --------
  Income before provision for income taxes           12,845      8,276
Provision for income taxes                            4,785      3,021
                                                   --------   --------
  Net income                                         $8,060     $5,255
                                                   ========   ========

Net Income per common share:
  Basic earnings per share                            $0.35      $0.23
                                                   ========   ========
  Diluted earnings per share                          $0.34      $0.23