Hibbett Sports, Inc. reported sales increased 10.4 percent for the first quarter ended April 30, to $203.7 million compared with $184.5 million a year ago. Comparable store sales increased 6.8 percent. Net income for
the 13-week period climbed 23.1 percent to $21.3
million, or 76 cents a share, compared with $17.3 million, or 59 cents, in the year-ago quarter.
Jeff Rosenthal, president and chief executive officer, stated, “The record first quarter operating margin of 16.8 percent is a direct result of cleaner inventories, improved merchandise assortment execution, and continued benefits from our investments in systems. This marks our sixth consecutive quarter of comparable store sales increases and our seventh consecutive quarter of earnings increases. We are pleased with the strong comparable store sales gains, which were led by activewear and footwear and feel good about the strong start to the second quarter as well as our expectations for Fiscal 2012 based on our merchandising strategies, solid inventory position and new store sales productivity.”
For the first quarter, Hibbett opened 8 new stores, expanded 4 high performing stores and closed 7 underperforming stores bringing the store base to 799 in 26 states as of April 30, 2011. For Fiscal 2012, the Company expects to open approximately 50 to 55 new stores, close 10 to 15 stores and expand 15 high performing stores.
Liquidity and Stock Repurchases
Hibbett ended the first quarter of Fiscal 2012 with $85.3 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt and full availability under its $80.0 million unsecured credit facilities.
During the first quarter, the company repurchased 732,547 shares of common stock for a total expenditure of $23.7 million. Approximately $189.6 million of the current $250.0 million authorization remains for future stock repurchases.
Fiscal 2012 Outlook
The company increased its earnings guidance for Fiscal 2012 to a range of $1.80 to $1.95 per diluted share and an increase in comparable store sales in the low to mid single digit range. Hibbett Sports had previously anticipated fiscal 2012 earnings per share of $1.70 – $1.90.
| HIBBETT SPORTS, INC. AND SUBSIDIARIES | |||||||||
| Unaudited Condensed Consolidated Statements of Operations | |||||||||
(Dollars in thousands, except per share amounts) |
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Thirteen Weeks Ended | |||||
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April 30, |
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May 1, | ||
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2011 |
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2010 | ||
Net sales |
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$ |
203,656 |
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$ |
184,506 |
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Cost of goods sold, distribution center and store occupancy costs |
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127,863 |
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118,397 |
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Gross profit |
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75,793 |
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66,109 |
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Store operating, selling and administrative expenses |
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38,373 |
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34,941 |
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Depreciation and amortization |
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3,279 |
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3,492 |
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Operating income |
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34,141 |
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27,676 |
Interest expense, net |
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56 |
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6 |
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Income before provision for income taxes |
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34,085 |
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27,670 |
Provision for income taxes |
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12,748 |
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10,329 |
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Net income |
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$ |
21,337 |
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$ |
17,341 |
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Net income per common share: |
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Basic |
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$ |
0.78 |
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$ |
0.60 |
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Diluted |
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$ |
0.76 |
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$ |
0.59 |
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Weighted average shares outstanding: |
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Basic |
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27,446 |
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28,749 |
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Diluted |
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27,973 |
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29,364 |
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