Hibbett Q1 Sales Jump 10.5% on New Store Strength

Hibbett Sporting Goods, Inc. posted a 10.5% increase in first quarter net sales to $126.9 million compared with $114.8 million. Comparable store sales decreased 0.07% in the first quarter after an increase of 8.2% last year. Net income for the first fiscal quarter increased 7.7% to $11.5 million compared with $10.7 million in the first fiscal quarter of last year. Earnings per diluted share increased 12.9% to 35 cents compared with 31 cents per diluted share in the prior year. As compared to prior year proforma net income of $10.1 million, or 29 cents per diluted share, net income for the first fiscal quarter increased 14.2% and earnings per diluted share increased 20.7%. Proforma net income and related earnings per diluted share for the 13-week period ended April 30, 2005 have been determined utilizing the provisions of Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation.

Comparable store net sales data reflects sales for our Hibbett Sports and Sports Additions stores open through the 13-week period ended April 29, 2006 and corresponding period of the prior fiscal 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 September 27, 2005, to stockholders of record on September 9, 2005.

Hibbett opened a net of 11 new stores during the first quarter, bringing the store base to 560 in 22 states as of April 29, 2006. The company plans to open a net of approximately 80 to 85 new stores in fiscal 2007, including a net of approximately 15 to 18 stores in the second quarter.

Mickey Newsome, Chairman and Chief Executive Officer, stated, “The first quarter comparable store sales results reflect the momentum we faced from over 8% gains for the last two years and softness in a few key merchandise offerings. The gain in team sports equipment partially offset the year-over-year declines we expected in NBA pro-licensed apparel and Baller Bands. We did not, however, anticipate the weaker performance in footwear during the quarter. Gains in product margin helped minimize the increase in operating expenses, while inventory growth remained less than both sales and new square footage growth. Exclusive of the expensing of equity awards under 123R our operating margins increased over last year's record rate and the fundamentals of our business are very strong. As we look ahead to the balance of the year, we are well positioned with open-to-buy dollars to fill in gaps where necessary to achieve our comparable store sales goals for the year.”

Fiscal 2007 Outlook

For the second quarter ending July 29, 2006, the company expects to report earnings per diluted share of approximately 14 cents to 16 cents (which includes 1 cent to 2 cents of equity award expense per diluted share) and a comparable store sales increase of 1.0% to 2.0%. Guidance for fiscal 2007 is estimated at approximately $1.08 to $1.12 per diluted share (which includes 7 cents to 9 cents of equity award expense per diluted share) and a comparable store sales increase in the 2.0% to 3.0% range.

Stock Repurchase

During the first quarter, the company repurchased 0.5 million shares of common stock for a total expenditure of $15.0 million. Since the inception of the program in August 2004, we have repurchased 3.7 million shares for a total expenditure of $81.0 million leaving $19.0 million of the total authorization for future stock purchases as of May 18, 2006.

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

                                                   First Quarter Ended
                                                   -------------------
                                                   April 29, April 30,
                                                     2006      2005
                                                   --------- ---------
Net sales                                          $126,914  $114,823
Cost of goods sold, including distribution center
 and store occupancy costs                           82,774    75,283
                                                   --------- ---------
     Gross profit                                    44,140    39,540
Store operating, selling, and administrative
 expenses                                            23,310    20,282
Depreciation and amortization                         2,705     2,455
                                                   --------- ---------
     Operating income                                18,125    16,803
Interest income, net                                    321       319
                                                   --------- ---------
     Income before provision for income taxes        18,446    17,122
Provision for income taxes                            6,923     6,421
                                                   --------- ---------
     Net income                                     $11,523   $10,701
                                                   ========= =========
Net Income per common share:
     Basic earnings per share                         $0.35     $0.32
                                                   ========= =========
     Diluted earnings per share                       $0.35     $0.31
                                                   ========= =========
Weighted average shares outstanding:
     Basic                                           32,478    33,964
                                                   ========= =========
     Diluted                                         33,131    34,757
                                                   ========= =========