Hibbett’s Q2 Earnings Inch Up on 2.6% Comps Increase

Hibbett Sports, Inc. net sales for the 13-week second quarter ended August 4, 2007, increased 9.6% to $114.4 million compared with $104.4 million for 2006 quarter. Comparable store sales increased 2.6% on a fiscal basis. Net income for the second fiscal quarter was $4.7 million compared with $4.0 million in the prior-year period. Earnings per diluted share was 15 cents compared with 12 cents in the prior year.

Net sales on a fiscal basis for the 26-week period ended August 4, 2007, increased 7.3% to $248.2 million compared with $231.3 million for the 26-week period ended July 29, 2006. Comparable store sales for this period decreased 0.2% on a fiscal basis. Net income for this period was $14.9 million compared with $15.5 million in the same period of fiscal 2007. Earnings per diluted share were $0.47 compared with $0.47 in the prior year.

Each quarter of fiscal 2008 starts one week later than the same quarter of fiscal 2007, due to the Company's 2007 fiscal year having 53 weeks versus the normal 52 weeks. This timing shift can have a significant impact on quarterly sales comparisons.

The measurement of sales on a calendar basis in comparable stores for the same calendar weeks is based on sales during the 13 weeks and 26 weeks ended August 4, 2007, in relation to the same weeks ended August 5, 2006. On a calendar basis, comparable store sales decreased 5.6% for the 13 weeks and 2.3% for the 26 weeks.

Hibbett opened 17 new stores and closed 3 stores during the second quarter, bringing the store base to 634 in 23 states as of August 4, 2007. The Company plans to open 28 to 30 stores and close 2 to 4 stores in the third quarter. For fiscal 2008, the Company plans to open 90 to 95 stores and close 6 to 10 stores.

Mickey Newsome, Chairman and Chief Executive Officer, stated, “Consistent with our announcement earlier this month, the soft sales trend experienced in the second quarter led to lower than expected results. However, as we move forward into the third quarter, we are encouraged by the strength of back-to-school shopping trends occurring later and closer to the start of school and the tax-free holidays falling in the third quarter in Texas and Florida. We have found that the tax-free holidays have a significant impact on consumer shopping behavior and view these events as positive given the importance of August to the third quarter. During the first 19 days of the quarter, we have seen improved sales and a comparable calendar increase in the mid-single-digits.”

Fiscal 2008 Outlook

For the third fiscal quarter ending November 3, 2007, the Company expects to report earnings per diluted share of 20 cents to 25 cents with slightly positive comparable store sales on a calendar basis and mid-single-digit negative comparable store sales on a fiscal basis. For fiscal 2008, the Company expects to report earnings of $1.07 to $1.20 per diluted share and a slightly positive comparable store sales increase on both a calendar and fiscal basis. At the present time, the Company has continued its historical practice of giving guidance. However, no assurance is given that the Company will achieve these forecasts, especially as a result of the uncertainties impacting our business such as the economy, consumer confidence and disruptions in the capital markets.

                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
                           -------------------- ----------------------
                           August 4,  July 29,   August 4,   July 29,
                              2007      2006        2007       2006
                           ---------- --------- ------------ ---------
Net sales                  $  114,404 $ 104,363 $    248,245 $ 231,277
Cost of goods sold,
 including distribution
 center and store
 occupancy costs               76,928    71,671      165,716   154,445
                           ---------- --------- ------------ ---------
  Gross profit                 37,476    32,692       82,529    76,832
Store operating, selling,
 and administrative
 expenses                      26,583    23,517       52,614    46,827
Depreciation and
 amortization                   3,096     2,750        6,015     5,455
                           ---------- --------- ------------ ---------
  Operating income              7,797     6,425       23,900    24,550
Interest income, net               16       111          409       432
                           ---------- --------- ------------ ---------
  Income before provision
   for income taxes             7,813     6,536       24,309    24,982
Provision for income taxes      3,132     2,516        9,400     9,439
                           ---------- --------- ------------ ---------
  Net income               $    4,681 $   4,020 $     14,909 $  15,543
                           ========== ========= ============ =========
Net income per common
 share:
  Basic earnings per share $     0.15 $    0.12 $       0.47 $    0.48
                           ========== ========= ============ =========
  Diluted earnings per
   share                   $     0.15 $    0.12 $       0.47 $    0.47
                           ========== ========= ============ =========
Weighted average shares
 outstanding:
  Basic                        31,190    32,205       31,431    32,341
                           ========== ========= ============ =========
  Diluted                      31,695    32,656       31,957    32,894
                           ========== ========= ============ =========