Hibbett Sporting Goods' net sales for the third quarter increased 20.0% to $110.6 million compared with $92.1 million. Comparable store sales increased 8.4%. Net income for the third fiscal quarter increased 33.6% to $8.2 million compared with restated net income of $6.1 million in the third fiscal quarter of last year. Earnings per diluted share increased 41.2% to 24 cents compared with restated diluted earnings per share of 17 cents in the prior year.
Net sales for the 39-week period ended October 29, 2005, increased 18.1% to $319.4 million compared with $270.5 million for the 39-week period ended October 30, 2004. Comparable store sales increased 6.7% in the first nine months of fiscal 2006. Net income for the first nine months of fiscal 2006 increased 39.4% to $23.7 million compared with restated net income of $17.0 million in the first nine months of fiscal 2005. Earnings per diluted share increased 44.7% to $0.68 compared with restated diluted earnings per share of $0.47 in the prior year. Comparable store net sales data reflects sales for our Hibbett Sports and Sports Additions stores open through the 39-week period and the corresponding period of the prior fiscal year.
Hibbett opened 19 new stores and closed one store during the third quarter, bringing the store base to 526 in 22 states as of October 29, 2005. The Company plans to open a net of approximately 65 to 70 new stores in fiscal 2006, including a net of approximately 21 to 26 stores in the fourth quarter.
Mickey Newsome, Chairman and Chief Executive Officer, stated, “A strong comparable store sales performance from all three product categories, continued improvement in margins and the benefit of post-hurricane sales produced another record quarter. Footwear was our largest gainer with a double-digit increase led by kids and cleated categories. Year over year operating income increased 104 basis points in spite of hurricane related expenses and the comparison to an outstanding third quarter last year. We estimate that the impact from strong post-hurricane sales in our affected markets added approximately 2.0% to 3.0% to our comparable store sales in the quarter.”
Fiscal 2006 Outlook
For the fourth quarter ending January 28, 2006, the Company expects to report earnings per diluted share of approximately $0.27 to $0.29 and a comparable store sales increase of 3.0% to 5.0% compared with earnings of $0.23 per diluted share in the prior-year period. Guidance for fiscal 2006 is estimated at approximately $0.96 to $0.98 per diluted share and a comparable store sales increase in the mid single-digit range.
Mr. Newsome added, “Since 1945, Hibbett has successfully established a 'home-town niche' in markets primarily in the Sunbelt. The Hibbett growth story has been far more than new store growth as we have consistently delivered strong sales and earnings. We are focused on continuing the Hibbett growth story during fiscal 2006, and the sales and earnings pace established through the first three quarters position us for another record year.”
The per share results reported for all periods presented herein reflect the effect of the three-for-two stock split that was distributed on September 27, 2005, to stockholders of record on September 9, 2005.
Stock Repurchase Program
The Company also announced that the Board of Directors has increased its authorization to repurchase the Company's common stock by $40.0 million to $100.0 million through August 2006. After considering past stock repurchases, approximately $44.5 million of the total authorization now remains for future stock repurchases.
During the third quarter, the Company repurchased 1.3 million shares of common stock for a total expenditure of $29.9 million, bringing the total shares repurchased since the inception of the program in August 2004 to 2.8 million shares for a total expenditure of $55.5 million.
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
Unaudited Statements of Operations
(Dollars in thousands, except per share amounts)
13 Weeks Ended 39 Weeks Ended
------------------- -------------------
(as restated) (as restated)
Oct. 29, Oct. 30, Oct. 29, Oct. 30,
2005 2004 (1) 2005 2004 (1)
-------- -------- -------- --------
Net sales $110,594 $92,140 $319,442 $270,453
Cost of goods sold,
including warehouse,
distribution, and store
occupancy costs 73,485 61,241 213,212 183,140
-------- -------- -------- --------
Gross profit 37,109 30,899 106,230 87,313
Store operating, selling,
and administrative
expenses 21,876 18,807 62,003 53,129
Depreciation and
amortization 2,570 2,500 7,518 7,375
-------- -------- -------- --------
Operating income 12,663 9,592 36,709 26,809
Interest income, net 281 147 896 309
-------- -------- -------- --------
Income before provision
for income taxes 12,944 9,739 37,605 27,118
Provision for income taxes 4,776 3,627 13,876 10,101
-------- -------- -------- --------
Net income $8,168 $6,112 $23,729 $17,017
======== ======== ======== ========
Net Income per common
share:
Basic earnings per
share $0.24 $0.17 $0.70 $0.49
======== ======== ======== ========
Diluted earnings per
share $0.24 $0.17 $0.68 $0.47
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 33,441 34,991 33,870 35,042
======== ======== ======== ========
Diluted 34,102 35,711 34,665 35,912
======== ======== ======== ========
