Hibbett Sports Inc. provided preliminary unaudited financial results for its fourth quarter and full year of Fiscal 2021 that ended January 30, 2021, and an initial financial outlook for fiscal 2022.
Fourth -Quarter and Full-Year Preliminary Results
Fourth-quarter comparable sales increased 21.9 percent, well above the previous guidance of an increase in the high-single-digits to low-double-digits. Momentum from the third quarter was sustained throughout the fourth quarter both in-store and online as better than anticipated holiday volume and incremental stimulus were major contributors to the strong sales performance. Full-year comparable sales increased 22.2 percent.
Fourth-quarter GAAP and adjusted diluted EPS are expected in the range of $1.30 to $1.40 versus the previously targeted range of $1.00 to $1.10, mainly driven by the sales lift. Full-year diluted EPS is projected to be in the range of $4.30 to $4.40. Adjusted diluted EPS is expected in the range of $6.05 to $6.15.
Mike Longo, president and chief executive officer, stated, “I am very proud of how our resilient business model and dedicated team members have performed during a challenging business and holiday environment. By continuing to execute on our commitment to provide a compelling merchandise assortment through superior customer service and a best-in-class omnichannel platform, we exceeded our previously disclosed outlook for the fourth quarter. New customer retention, the ability to effectively manage available in-demand footwear, apparel and accessories, and incremental stimulus payments contributed to the strong performance in the quarter.”
Fiscal 2022 Outlook
Although it is difficult to forecast future results due to the challenges posed by the ongoing COVID-19 pandemic and uncertainty regarding the business environment, further stimulus payments, and potential labor and tax legislation, Hibbett said it is providing limited forward guidance regarding its initial outlook for fiscal 2022, which ends January 29, 2022.
Hibbett said its projected financial results for fiscal 2022 will be influenced by many factors, several of which are discussed below:
- Hibbett said it believes it attracted new customers to its store locations and to its omnichannel platform in fiscal 2021 due to pent-up demand, market disruption and government stimulus payments. Many of these new customers made repeat purchases. Hibbett said it expects to continue to attract and retain new customers during fiscal 2022;
- Accelerating consumer adoption of e-commerce, which Hibbett believes is likely a permanent change, will continue to benefit its omnichannel business;
- Hibbett said its strong vendor relationships allow it to meet customer demand for fashion-inspired athletic footwear, apparel and accessories, both in-store and online;
- Other initiatives, including net low double-digit store unit growth per brand, an improved in-store experience resulting from its store refresh program, increased speed to market via supply chain enhancements, and an improved focus on its sales culture; and
- Specific items not factored into its outlook include further government stimulus payments, unannounced and/or unexpected market disruption, changes to the Federal minimum wage, increases in corporate tax rates, and shifts in consumer spending habits.
Based on the considerations above, Hibbett said it is currently forecasting the following GAAP results for fiscal 2022:
- Comparable sales ranging from negative low-single-digits to positive low-single-digits in comparison to fiscal 2021;
- Diluted earnings per share in the range of $5.00 to $5.50, assuming an effective tax rate of approximately 25.0 percent and a weighted average diluted share count of approximately 17.0 million; and
- Non-GAAP results for fiscal 2022 are not expected to materially differ from its GAAP results.
Hibbett plans to formally report its fourth-quarter and full-year fiscal 2021 financial results before the market opens on March 5, 2021.
Photo courtesy Hibbett Sports