Hibbett Sports Reports 4.9 Percent Comp Growth in Fourth Quarter

Gross profit improved to 36.1 percent of net sales for the 14-week period ended Feb. 2, 2013, compared with 35.8 percent for the 13-week period ended January 28, 2012.

Store operating, selling and administrative expenses improved to 20.3 percent of net sales for the 14-week period ended Feb. 2, 2013, compared with 20.9 percent of net sales for the 13-week period ended January 28, 2012.

Net income for the 14-week period ended Feb. 2, 2013, increased 22.3 percent to $19.4 million compared with $15.8 million for the 13-week period ended January 28, 2012. Earnings per diluted share increased 23.7 percent to $0.73 for the 14-week period ended Feb. 2, 2013 compared with $0.59 for the 13-week period ended January 28, 2012. The 14th week added approximately $0.07 in diluted earnings per share to our quarterly and annual results.

For the quarter, Hibbett opened 27 new stores, expanded 4 high performing stores and closed 2 underperforming stores, bringing the store base to 873 in 29 states as of Feb. 2, 2013.

Fiscal 2013 results
Net sales for the 53-week period ended Feb. 2, 2013, increased 11.8 percent to $818.7 million compared with $732.6 million for the 52-week period ended January 28, 2012. Comparable store sales increased 6.9 percent on a 52-week to 52-week period.

Gross profit improved to 36.5 percent of net sales for the 53-week period ended Feb. 2, 2013, compared with 35.8 percent for the 52-week period ended January 28, 2012.

Store operating, selling and administrative expenses improved to 20.8 percent of net sales for the 53-week period ended Feb. 2, 2013, compared with 21.3 percent of net sales for the 52-week period ended January 28, 2012.

Net income for the 53-week period ended Feb. 2, 2013, increased 22.9 percent to $72.6 million compared with $59.1 million for the 52-week period ended January 28, 2012. Earnings per diluted share increased 26.5 percent to $2.72 compared with $2.15 for the 52-week period ended January 28, 2012.

For the year, Hibbett opened 54 new stores, expanded 13 high performing stores and closed 13 underperforming stores.

The holiday season was strong due to solid performance in footwear, apparel, and accessories, said Jeff Rosenthal, president and CEO. Fiscal 2013 results were accomplished by excellent assortments, great customer service, and outstanding support from our distribution team and supplier partners. Looking forward into Fiscal 2014, we are well positioned to continue our growth and are very excited about the investments being made in the business to ensure our future success.
Liquidity and Stock Repurchases

Hibbett ended the fourth quarter of Fiscal 2013 with $76.9 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 fourth quarter, the company repurchased 203,662 shares of common stock for a total expenditure of $11.0 million. For Fiscal 2013, the company repurchased 903,794 shares of common stock for a total expenditure of $49.9 million. Approximately $245.4 million of the total authorization remained for future stock repurchases as of Feb. 2, 2013.

 
Fiscal 2014 outlook
For Fiscal 2014, the company expects to report diluted earnings per share in the range of $2.85 to $3.05 and an increase in comparable store sales in the low to mid-single digit range despite Fiscal 2013 enjoying an approximate $0.07 benefit in earnings per diluted share due to the 53rd week. For Fiscal 2014, the company expects to open 65 to 70 new stores, expand approximately 18 high performing stores and close 15 to 20 stores.