Hibbett Sports, Inc. reported net sales for the 13-week period ended May 2, 2009 increased 8.1% to $157.7 million compared with $145.8 million for the 13-week period ended May 3, 2008. Comparable store sales increased 2.4%.

Operating income was 11.1% of net sales for the 13-week period ended May 2, 2009 compared to 10.6% for the 13-week period ended May 3, 2008, an increase of 55 basis points. Net income increased 16.4% to $10.9 million compared with $9.4 million for the 13-week period ended May 3, 2008. Earnings per diluted share increased 16.9% to $0.38 compared with $0.32 for the 13-week period ended May 3, 2008.

Mickey Newsome, Chairman and Chief Executive Officer, stated, “We are pleased to have generated net sales and earnings growth above plan in the first quarter. On a comparable store basis, apparel and footwear were positive and equipment was negative. While there is uncertainty in the marketplace, we have done a good job of effectively managing our business. Our inventory per store is down and our cash position has significantly improved.”

For the quarter, Hibbett opened 14 new stores and closed 6 stores, bringing the store base to 753 in 24 states as of May 2, 2009. For Fiscal 2010, the Company plans to open 65 to 70 new stores and close 20 to 25 stores.

Liquidity

Inventory on a per store basis at May 2, 2009 decreased 5.0% compared to May 3, 2008. Hibbett ended the first quarter with $34.6 million of available cash and cash equivalents on the unaudited condensed consolidated balance sheet and full availability under its $80 million unsecured credit facilities.

Fiscal 2010 Outlook

The company’s guidance for the fiscal year ending Jan. 30, 2010 remains unchanged. Earnings are expected in the range of $1.03 to $1.17 per diluted share with comparable store sales in the low single-digits. We expect to be negatively impacted in the second quarter this year for two reasons.

The company said in a press release that stimulus checks were received by consumers in the second quarter of last year but not received this year. The company added that there will be a significant transition of sales tax holidays into third quarter this year from second quarter last year. Currently, over 550 of our stores are in states with sales tax holidays. This year, over 400 of the stores will have their sales tax holiday in the third quarter, as compared to less than 100 in the third quarter last year. As a result, we expect higher sales and earnings growth in the third quarter compared to the third quarter last year.
 
    
HIBBETT SPORTS, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

 
 
Thirteen Weeks Ended
May 2, May 3,
2009 2008
Net sales $ 157,700 $ 145,825

Cost of goods sold, distribution center and store occupancy costs

  105,004   98,013
Gross profit 52,696 47,812

Store operating, selling and administrative expenses

31,873 29,099
Depreciation and amortization   3,265   3,279
Operating income 17,558 15,434
Interest expense, net   2   122
Income before provision for income taxes 17,556 15,312
Provision for income taxes   6,644   5,940
Net income $ 10,912 $ 9,372
 
Net income per common share:
Basic earnings per share $ 0.38 $ 0.33
Diluted earnings per share $ 0.38 $ 0.32
 
Weighted average shares outstanding:
Basic   28,568   28,707
Diluted   28,971   29,081