Hibbett Sporting Goods didnt have as many weather-related issues in the third quarter due to a product mix focused on fewer cyclical items and weather-dependant categories like outerwear and outdoor equipment.
Comp sales increases were fairly balanced throughout the quarter and the company sees the trend continuing into the fourth quarter. The focus on pure athletics is paying big dividends and keeps this train rolling along at a steady pace with fewer peaks and valleys.
The companys operational expertise enables them to do more with less than any other chain the industry, producing an industry-leading 6.9% same-store sales increase with 8.5% less inventory on a comp store basis. Strip center stores, which make up roughly 75% of doors, comped a little higher than the closed mall stores which make up the balance.
Apparel, which posted a double-digit gain, led all product categories with strength in both active and licensed.
Nike Dri-Fit and Under Armour again led the performance area of the business, while a double-digit gain in licensed was driven by college apparel. In addition to strength in jerseys and sidelines product from Nike, Hibbett is seeing good results in ladies and youth in the college arena. NFL product from Reebok also saw double-digit gains, led still by Michael Vick. Hibbett pointed to a nice business in retro college jerseys, retro NBA product and even retro high school jerseys for Magic Johnson and Tracy McGrady.
Footwear posted positive “low to mid single-digits” comp sales gains and margins were up 200 basis points from the year-ago period. Kids was the top performer here, posting a “mid single-digit gain”, while Mens and Womens comped up in the “low single-digits”. Jeff Rosenthal, VP of Merchandising, said they will get the LeBron James shoe for “probably more than” 80 stores.
Equipment comps were up “low single-digits”, marking the first increase for the category in “almost 18 months”, driven primarily by exercise and fitness. Football was said to be good as well, driven by accessories and inflatables. Management said they were focused on more vendor managed inventory in the hardgoods area, filling in as the product sells through. They have “cut out” categories like tennis and golf that were turning slow and impacting margins.
HIBB said they will drive price points in their key team sports categories, placing an emphasis on higher quality goods in the middle to higher price points.
HIBB expects to see EPS of 33 cents to 35 cents a share for the fourth quarter, with an estimated comparable-store sales increase in the range of 4% to 5%. Hibbett now estimates full-year EPS in the $1.22 to $1.24 range, up from its August view of $1.10 to $1.12 a share. Analysts were looking for about $1.13 a share. Comparable earnings were 96 cents a share LY.