Hibbett Sports, Inc. saw a 5.5% increase in net sales for the first quarter to $133.8 million from $126.9 million for the same period last year. Comparable store sales increased 0.7%. Net income for the first quarter was down 11.3% to $10.2 million from $11.5 million in the prior-year period. Earnings per diluted share wer 32 cents compared with 35 cents in the prior year.
Each quarter of fiscal 2008 starts one week later than the same quarter of fiscal 2007, due to the company's 2007 fiscal year having 53 weeks versus the normal 52 weeks. This timing shift can have a significant impact on quarterly sales comparisons. The measurement of sales in comparable stores for comparable weeks above is based on sales during the thirteen weeks ended May 5, 2007 in relation to the thirteen weeks ended May 6, 2006. On a fiscal quarter basis, comparing the thirteen weeks ended May 5, 2007 with the thirteen weeks ended April 29, 2006, comparable store sales decreased 2.6%.
Hibbett opened 9 new stores and closed 2 stores during the first quarter, bringing the store base to 620 in 23 states as of May 5, 2007. The company plans to open 15 to 18 stores and close 2 to 3 stores in the second quarter. The Company plans to open 90 to 95 stores and close 5 to 10 stores in fiscal 2008.
Mickey Newsome, chairman and CEO, stated, “As expected, the shift of the first week in February from the first quarter into last year's fourth quarter negatively impacted our overall sales and our comparable store sales on a fiscal basis. Through the first nine weeks of the quarter, the Company was slightly above its earnings per share forecast. A very difficult retail environment in the month of April prevented us from maintaining that earnings pace and led to earnings at the lower end of our guidance for the first quarter of fiscal 2008. Positive sales results in technical apparel, youth products and team sports equipment offset some softness experienced in our urban enclosed mall stores.”
Fiscal 2008 Outlook
For the second quarter ending August 4, 2007, the company expects to report earnings per diluted share of 20 cents to 24 cents with a comparable store sales increase in the high single digits. The company maintained its EPS guidance for the 52-week period ending February 2, 2008 of $1.30 to $1.35 per diluted share.
Stock Repurchase
During the first quarter, the company repurchased 338,000 shares of common stock for a total expenditure of $9.9 million, bringing the total shares repurchased since the inception of the program in August 2004 to 4.6 million shares for a total expenditure of $107.2 million. After considering past stock repurchases, $42.8 million of the total authorization remained for future stock repurchases at the end of the first quarter of fiscal 2008.
HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
First Quarter Ended
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May 5, April 29,
2007 2006
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Net sales $133,842 $126,914
Cost of goods sold, including distribution center
and store occupancy costs 88,789 82,774
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Gross profit 45,053 44,140
Store operating, selling, and administrative
expenses 26,031 23,310
Depreciation and amortization 2,920 2,705
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Operating income 16,102 18,125
Interest income, net 393 321
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Income before provision for income taxes 16,495 18,446
Provision for income taxes 6,268 6,923
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Net income $10,227 $11,523
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Net Income per common share:
Basic earnings per share $0.32 $0.35
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Diluted earnings per share $0.32 $0.35
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Weighted average shares outstanding:
Basic 31,671 32,478
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Diluted 32,219 33,131
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