Hibbett Sports, Inc.'s sales increased 4.1% for the 13-week period ended Oct. 31, to $145.9 million compared with $140.1 million a year ago. Comps decreased 0.2%. Net income advanced 14.7% to $8.8 million, or 30 cents a share, from $7.7 million, or 26 cents, a year ago.
Net sales for the 39-week period were $426.7 million compared with $416.3 million a year ago. Comparable store sales decreased 2.5%. Net income was $20.8 million, or $72 cents a share, compared with $21.8 million, or 75 cents, a year ago.
Mickey Newsome, chairman and chief executive officer, stated, “We entered the third quarter with our inventories in excellent shape and saw overall improvement in the quarter due to merchandise selection and tight expense control. We were able to improve margins and liquidity with a solid cash generation on a slight decline in comparable store sales. While footwear was negative for the quarter and continues to be a challenge, we saw improvement over the second quarter. Apparel, accessories, equipment and cleated footwear all posted positive same store sales in the third quarter, and we expect that trend to continue in the fourth quarter.”
For the quarter, Hibbett opened seven new stores and closed two stores, bringing the store base to 764 in 24 states as of October 31, 2009. For Fiscal 2010, the company plans to open 42 new stores and close approximately 20 stores while expanding 18 to 20 high performing stores.
Liquidity
Hibbett ended the third quarter with $24.8 million of available cash and cash equivalents on the consolidated balance sheet, no debt and full availability under its current $80 million unsecured credit facilities. At quarter end a year ago, the company had $6.5 million in cash and cash equivalents and $14.9 million in debt.
Stock Repurchase Program
The Board of Directors of the company authorized a new Stock Repurchase Program (Program) of $250.0 million expiring on February 2, 2013. Effective immediately, the new Program replaces the existing authorization which was due to expire on January 30, 2010. Under the prior authorization, the company had purchased 7,761,813 shares of common stock to date at a cost of $167.0 million.
Fiscal 2010 Outlook
The company updated its earnings guidance for the fiscal year ending January 30, 2010, to a range of 95 cents to $1.02 per diluted share from the previous guidance of 85 cents to 95 cents per diluted share. Comparable store sales for the fourth quarter of Fiscal 2010 are expected to range between -2.0% and 2.0%.
| HIBBETT SPORTS, INC. AND SUBSIDIARIES | |||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||
(Dollars in thousands, except per share amounts) |
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Thirteen Weeks Ended |
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Thirty-Nine Weeks Ended | ||||||||
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October 31, |
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November 1, |
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October 31, |
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November 1, | ||||
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2009 |
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2008 |
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2009 |
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2008 | ||||
Net sales |
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$ |
145,855 |
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$ |
140,148 |
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$ |
426,673 |
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$ |
416,262 |
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96,218 |
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93,456 |
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287,553 |
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279,493 |
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Gross profit |
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49,637 |
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46,692 |
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139,120 |
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136,769 |
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32,168 |
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31,073 |
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95,353 |
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91,041 |
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Depreciation and amortization |
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3,525 |
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3,587 |
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10,327 |
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10,452 |
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Operating income |
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13,944 |
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12,032 |
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33,440 |
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35,276 |
Interest expense, net |
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2 |
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153 |
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36 |
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523 |
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Income before provision for income taxes |
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13,942 |
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11,879 |
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33,404 |
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34,753 |
Provision for income taxes |
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5,167 |
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4,227 |
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12,608 |
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12,938 |
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Net income |
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$ |
8,775 |
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$ |
7,652 |
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$ |
20,796 |
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$ |
21,815 |
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Net income per common share: |
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Basic earnings per share |
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$ |
0.31 |
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$ |
0.27 |
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$ |
0.73 |
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$ |
0.76 |
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Diluted earnings per share |
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$ |
0.30 |
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$ |
0.26 |
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$ |
0.72 |
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$ |
0.75 |
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Weighted average shares outstanding: |
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Basic |
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