Hibbett Sports, Inc. raised its fiscal 2013 guidance after reporting net sales for the 13-week period ended July 28, increased 8.0 percent to $165.4 million compared with $153.1 million for the 13-week period ended July 30.

Comparable store sales increased 4.8 percent. Net income for the 13-week period ended July 28, increased 32.9 percent to $7.9 million compared with $5.9 million for the 13-week period ended July 30, 2011. Earnings per diluted share increased 42.9 percent to $0.30 compared with $0.21 for the 13-week period ended July 30, 2011.
Net sales for the 26-week period ended July 28, increased 11.7 percent to $398.4 million compared with $356.8 million for the 26-week period ended July 30, 2011. Comparable store sales increased 8.4 percent. Net income for the 26-week period ended July 28, 2012, increased 25.6 percent to $34.3 million compared with $27.3 million for the 26-week period ended July 30, 2011. Earnings per diluted share increased 30.6 percent to $1.28 compared with $0.98 for the 26-week period ended July 30, 2011.
“Our outlook for Fiscal 2013 continues to indicate solid earnings growth driven by positive sales trends and margin improvement,” said Jeff Rosenthal, president and CEO. “Based on our strong first half results, we are raising full year earnings estimates. Our small market strategy of bringing premium branded products to underserved markets continues to drive results.”
For the quarter, Hibbett opened seven new stores, expanded three high performing stores and closed five underperforming stores, bringing the store base to 837 in 26 states as of July 28, 2012. Inventory was $199.0 million at the end of the second quarter, up 2.1 percent from Jan. 28, 2012.
Liquidity and Stock Repurchases

Hibbett ended second quarter of Fiscal 2013 with $71.5 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 176,443 shares of common stock for a total expenditure of $10.2 million. Approximately $121.5 million of the current $250.0 million authorization remains available for future stock repurchases.

Fiscal 2013 Outlook

 The company increased its earnings guidance for Fiscal 2013 to a range of $2.57 to $2.67 per diluted share (which includes an expected contribution of 7 to 9 cents per diluted share from the 53rd week) and a mid-single-digit comparable store sales increase. For Fiscal 2013, the company expects to open 55 to 60 new stores, expand approximately 15 high performing stores and close up to 18 underperforming stores.
 

HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
Thirteen Weeks Ended Twenty-Six Weeks Ended
July 28, July 30, July 28, July 30,
2012 2011 2012 2011
Net sales $ 165,445 $ 153,127 $ 398,359 $ 356,783
Cost of goods sold, distribution center and store occupancy costs
108,920 102,490 253,405 230,353
Gross profit 56,525 50,637 144,954 126,430
Store operating, selling and administrative expenses
40,968 37,969 83,772 76,342
Depreciation and amortization 3,180 3,300 6,406 6,580
Operating income 12,377 9,368 54,776 43,508
Interest expense, net 41 60 89 116
Income before provision for income taxes 12,336 9,308 54,687 43,392
Provision for income taxes 4,441 3,368 20,429 16,115
Net income $ 7,895 $ 5,940 $ 34,258 $ 27,277
Net income per common share:
Basic earnings per share $ 0.30 $ 0.22 $ 1.30 $ 1.00
Diluted earnings per share $ 0.30 $ 0.21 $ 1.28 $ 0.98