Hibbett Sports, Inc. net sales for the 13-week period ended July 31, 2010, increased 13.6% to $139.8 million compared with $123.1 million for the 13-week period ended August 1, 2009. Comparable store sales increased 11.9%, making it the second straight quarter the company has produced double digit comparable store sales growth.
Net income for the second quarter of Fiscal 2011 increased 261.9% to $4.0 million compared with $1.1 million for the second quarter of Fiscal 2010. Earnings per diluted share increased 257% to 14 cents compared with 4 cents for the second quarter of Fiscal 2010.
Net sales for the 26-week period ended July 31, 2010, increased 15.5% to $324.3 million compared with $280.8 million for the 26-week period ended August 1, 2009. Comparable store sales increased 13.4%. Net income for the 26-week period ended July 31, 2010, was $21.4 million compared with $12.0 million for the 26-week period ended August 1, 2009. Earnings per diluted share increased 75% to $0.73 compared with $0.41 for the 26-week period ended August 1, 2009.
Jeff Rosenthal, president and CEO, stated, “This was a tremendous first half of the year for Hibbett with earnings already equaling what we achieved in the first three quarters last year. Based on our strong second quarter and year-to-date performance, coupled with continuing strong comparable store sales trends into the third quarter, we are raising our expectation for Fiscal 2011.”
In the second quarter, Hibbett opened 10 new stores and closed 3 stores, bringing the store base to 774 in 25 states as of July 31, 2010. The company opened its first stores in Colorado. For Fiscal 2011, the company expects to open approximately 30 new stores and expand approximately 20 high performing locations. In its efforts to increase operating margins, Hibbett intends to close 10 to 15 underperforming stores, which is permitted by the terms of the leases for these stores.
Hibbett ended the second quarter of Fiscal 2011 with $66.0 million of available cash and cash equivalents on the consolidated balance sheet and $3.1 million in debt. At quarter end a year ago, the company had $15.6 million of available cash and cash equivalents with no debt.
During the second quarter, the company repurchased 200,000 shares of common stock for a total expenditure of $4.9 million, bringing the total shares repurchased since the inception of the program in August 2004 to 7,963,225 shares for a total expenditure of $171.9 million.
Approximately $245.1 million of the total authorization remains for future stock repurchases as of the end of the second quarter of Fiscal 2011.
The company increased its earnings guidance for Fiscal 2011 to a range of $1.45 to $1.55 per diluted share based on a mid-to high-single-digit increase in comparable store sales in the second half of the year.
