Hibbett Sports Lowers FY Guidance

Net sales increased 12.6 percent to $186.2 million compared with $165.4
million for the 13-week period ended July 28, 2012. Comparable store
sales increased 0.3 percent on a calendar basis (comparable 13-week
period). Second quarter Fiscal 2013 comparable store sales increased 4.8
percent. The week shift associated with the fiscal calendar (due to the
53rd week last year) resulted in approximately $12 million of sales
benefit in the second quarter.

Gross profit was 34.3 percent of net sales for the 13-week period ended August 3, 2013, compared with 34.2 percent for the 13-week period ended July 28, 2012.

Store operating, selling and administrative expenses were 23.4 percent of net sales for the 13-week period ended August 3, 2013, compared with 24.8 percent of net sales for the 13-week period ended July 28, 2012.

Fiscal Year to Date Results

Net sales for the 26-week period ended August 3, 2013 increased 7.0 percent to $426.2 million compared with $398.4 million for the 26-week period ended July 28, 2012. Comparable store sales increased 0.6 percent on a calendar basis (comparable 26-week period).
Gross profit was 36.3 percent of net sales for the 26-week period ended August 3, 2013, compared with 36.4 percent for the 26-week period ended July 28, 2012.

Store operating, selling and administrative expenses were 20.8 percent of net sales for the 26-week period ended August 3, 2013, compared with 21.0 percent of net sales for the 26-week period ended July 28, 2012.

Net income for the 26-week period ended August 3, 2013 was $36.8 million compared with $34.3 million for the 26-week period ended July 28, 2012. Earnings per diluted share increased 9.4 percent to $1.40 for the 26-week period ended August 3, 2013, compared with $1.28 for the 26-week period ended July 28, 2012.

Jeff Rosenthal, president and chief executive officer, stated, “We delivered a solid increase in earnings for the second quarter. Comparable store sales were softer than planned due to a challenging economic environment; however, we are encouraged by a strong start to the third quarter. New store performance continues to be strong and we remain confident with the pace of new store openings.”

For the quarter, Hibbett opened 17 new stores, expanded 3 high performing stores and closed 4 underperforming stores, bringing the store base to 892 in 31 states as of August 3, 2013. For Fiscal 2014, the company expects to open 70-75 new stores, expand approximately 18 high performing stores and close 15 to 20 stores.

Liquidity and Stock Repurchases

Hibbett ended the second quarter of Fiscal 2014 with $80.9 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt outstanding and full availability under its $80.0 million unsecured credit facilities.

During the second quarter, the company repurchased 110,361 shares of common stock for a total expenditure of $6.2 million. Approximately $238.1 million of the total authorization remained for future stock repurchases as of August 3, 2013.

Fiscal 2014 Outlook

Given recent trends and on-going uncertainties in the economic environment, the company is revising its guidance for the 52 weeks ending February 1, 2014, to earnings per diluted share in the range of $2.65 to $2.77, and an increase in comparable store sales (on a calendar basis) in the low single-digit range. This compares to previous guidance of earnings per diluted share in the range of $2.85 to $3.05, and an increase in comparable store sales (on a calendar basis) in the low to mid single-digit range.