News Column

Hibbett Sports Reports First Quarter Fiscal 2015 Results

May 23, 2014

  • Comparable Store Sales Increase 4.1%
  • EPS Increase 9.0%
  • Record 16 New Store Openings in the First Quarter
  • New Wholesale and Logistics Facility Fully Operational

    BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the first quarter ended May 3, 2014.

    First Quarter Results

    Net sales increased 9.1% to $261.9 million for the 13-week period ended May 3, 2014, compared with $240.0 million for the 13-week period ended May 4, 2013. Comparable store sales increased 4.1%.

    Gross profit was 37.5% of net sales for the 13-week period ended May 3, 2014, compared with 37.9% for the 13-week period ended May 4, 2013.

    Store operating, selling and administrative expenses were 18.7% of net sales for the 13-week period ended May 3, 2014, compared with 18.8% of net sales for the 13-week period ended May 4, 2013.

    Net income was $28.4 million for the 13-week period ended May 3, 2014, compared with $26.2 million for the 13-week period ended May 4, 2013. Earnings per diluted share were $1.09 for the 13-week period ended May 3, 2014, compared with $1.00 for the 13-week period ended May 4, 2013.

    Jeff Rosenthal, President and Chief Executive Officer, stated, “We were pleased with sales during the first quarter, which were driven by strong demand in our core footwear and brand focused apparel businesses. In addition, we opened a record number of new stores and fully converted operations to our new wholesale and logistics facility. Looking forward, the continued success of new stores and the efficiencies of our new wholesale and logistics facility will be a catalyst for sustained, profitable growth for the company. Our team is focused on the execution of our strategic priorities and delivering sound results for our shareholders. We are confident that we can achieve the financial and operational goals for Fiscal 2015 and beyond.”

    For the quarter, we opened 16 new stores, expanded 4 high performing stores and closed 4 underperforming stores, bringing the store base to 939 in 31 states as of May 3, 2014.

    Liquidity and Stock Repurchases

    We ended the first quarter of Fiscal 2015 with $110.3 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt outstanding and full availability under our $80.0 million unsecured credit facilities.

    During the first quarter, we repurchased 198,000 shares of common stock for a total expenditure of $10.8 million. Approximately $218.8 million of the Board repurchase authorization remained for future stock repurchases as of May 3, 2014.

    Fiscal 2015 Outlook

    Our guidance for Fiscal 2015 includes:

  • Earnings per diluted share in the range of $2.78 to $2.98;
  • Increase in comparable store sales in the low-to-mid single digit range;
  • Approximately 75 to 80 new stores, 10 to 15 expansions and 15 to 20 closures;
  • Flat to slightly positive product gross margin rate compared to Fiscal 2014;
  • An estimated $0.11 per diluted share impact from additional costs related to the transition to the new wholesale and logistics facility, ongoing operational costs after opening, and increased depreciation; and
  • Increase in SG&A expense as a percent of sales due to increased health care costs (estimated $0.02 per diluted share), as well as increases in marketing and IT costs.

    Investor Conference Call and Simulcast

    Hibbett Sports will conduct a conference call at 10:00 a.m. ET on Friday, May 23, 2014, to discuss first quarter results. The number to call for the live interactive teleconference is (212) 231-2921. A replay of the conference call will be available until May 30, 2014, by dialing (402) 977-9140 and entering the passcode, 21646090.

    Hibbett Sports will also provide an online Web simulcast and rebroadcast of its first quarter conference call. The live broadcast of our quarterly conference call will be available online at www.hibbett.com under Investor Relations, or www.streetevents.com, on May 23, 2014, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and be available for replay for one year.

    Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. The company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centers and enclosed malls.

    A WARNING ABOUT FORWARD LOOKING STATEMENTS:Certain matters discussed in this press release are "forward looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995.Forward looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, plan, forecast, guidance, outlook, or estimate.For example, our forward looking statements include statements regarding store opening, expansion and closing plans, liquidity, sales trends, margin trends, the effects of the transition to the new wholesale and logistics facility, impact of healthcare costs, earnings per diluted share, comparable store sales, and our growth, execution and productivity expectations.Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including economic conditions, industry trends, merchandise trends, vendor relationships, customer demand, and competition.For a discussion of these factors, as well as others which could affect our business, you should carefully review our Annual Report and other reports filed from time to time with the Securities and Exchange Commission, including the "Risk Factors," "Business" and "MD&A" sections in our Annual Report on Form 10-K filed on March 31, 2014. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could turn out to be materially and adversely different from those we discuss or imply.We are not obligated to release publicly any revisions to any forward looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

     
    HIBBETT SPORTS, INC. AND SUBSIDIARIES
    Unaudited Condensed Consolidated Statements of Operations
    (Dollars in thousands, except per share amounts)
     
     
          Thirteen Weeks Ended
    May 3, 2014     May 4, 2013
    Net sales $ 261,909 $ 239,993
    Cost of goods sold, including wholesale, logistics and store occupancy costs   163,713   149,116
    Gross profit 98,196 90,877
    Store operating, selling and administrative expenses 48,952 45,113
    Depreciation and amortization   3,580   3,325
    Operating income 45,664 42,439
    Interest expense, net   73   45
    Income before provision for income taxes 45,591 42,394
    Provision for income taxes   17,203   16,180
    Net income $ 28,388 $ 26,214
     
    Net income per common share:
    Basic earnings per share $ 1.10 $ 1.01
    Diluted earnings per share $ 1.09 $ 1.00
     
    Weighted average shares outstanding:
    Basic   25,846   25,906
    Diluted   26,131   26,328
     
     
    HIBBETT SPORTS, INC. AND SUBSIDIARIES

    Unaudited Condensed Consolidated Balance Sheets

    (In thousands)

     
          May 3, 2014    

    February 1,

    2014

    Assets
    Cash and cash equivalents $ 110,275 $ 66,227
    Inventories, net 206,338 226,545
    Other current assets   22,969   30,877
    Total current assets 339,582 323,649
    Property and equipment, net 91,316 86,014
    Other assets   6,195   6,682
    Total assets $ 437,093 $ 416,345
     
    Liabilities and Stockholders' Investment
    Accounts payable $ 68,970 $ 74,532
    Short-term capital leases 391 322
    Accrued expenses   23,852   16,560
    Total current liabilities 93,213 91,414
    Non-current liabilities 21,455 20,908
    Stockholders' investment   322,425   304,023
    Total liabilities and stockholders' investment $ 437,093 $ 416,345
     
     
    HIBBETT SPORTS, INC. AND SUBSIDIARIES
    Supplemental Information
    (Unaudited)
     
     
          Thirteen Weeks Ended
    May 3, 2014     May 4, 2013

    Sales Information

    Net sales increase 9.1 % 3.0 %
    Comparable store sales increase 4.1 % 0.8 %
     

    Store Count Information

    Beginning of period 927 873
    New stores opened 16 9
    Stores closed   (4 )   (3 )
    End of period   939     879  
     
    Stores expanded 4 5
    Estimated square footage at end of period (in thousands) 5,408 5,054
     

    Balance Sheet Information

    Average inventory per store $ 219,742 $ 233,782
     

    Share Repurchase Activity

    Shares 277,443 99,430
    Cost (in thousands) $ 15,317 $ 5,440
     





    Hibbett Sports, Inc.

    Scott J. Bowman, 205-942-4292

    Senior Vice President & Chief Financial Officer


    Source: Hibbett Sports, Inc.


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    Source: Business Wire


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