Hibbett Sports, Inc. (NASDAQ/GS: HIBB):
- EPS Increases 15% to $1.12 Per Diluted
Share
- Comparable Store Sales Decrease
0.3%
- Continued Strong Growth in E-Commerce
Sales
- Company Successfully Launches Mobile
App
Hibbett Sports, Inc. (NASDAQ/GS: HIBB), an athletic specialty
retailer, today provided the following business updates:
First Quarter Results
Net sales for the 13-week period ended May 5, 2018, decreased
0.4% to $274.7 million compared with $275.7 million for the 13-week
period ended April 29, 2017. Comparable store sales decreased 0.3%.
E-commerce sales represented 7.0% of total sales for the first
quarter.
Gross margin was 35.2% of net sales for the 13-week period ended
May 5, 2018, compared with 35.6% for the 13-week period ended April
29, 2017. The decline was mainly due to increased sales of
clearance merchandise and freight associated with e-commerce sales.
At the end of the first quarter of Fiscal 2019, aged inventory
levels were significantly improved compared with the same period
last year.
Store operating, selling and administrative expenses were 22.5%
of net sales for the 13-week period ended May 5, 2018, compared
with 21.2% of net sales for the 13-week period ended April 29,
2017. The increase was mainly due to reinvestment of tax reform
savings to benefit the Company’s team members, additional marketing
initiatives to drive e-commerce sales and investments made to
launch our new mobile app.
Net income for the 13-week period ended May 5, 2018, was $21.5
million compared with net income of $20.9 million for the 13-week
period ended April 29, 2017. Earnings per diluted share was $1.12
for the 13-week period ended May 5, 2018, compared with earnings
per diluted share of $0.97 for the 13-week period ended April 29,
2017.
Jeff Rosenthal, President and Chief Executive Officer, stated,
“Overall we were pleased with our results, as we exceeded our
internal plan and experienced gross margin improvement in April.
Branded apparel was especially strong during the quarter with
comparable store sales in the high single-digit range, while
footwear and cleats were positive as well. E-commerce sales
continued to perform above expectations and represented
approximately 7% of total sales for the quarter. We are also very
encouraged with the early results of our new mobile app and believe
this will be a great tool for our highly mobile customer.
Additionally, we continue to make good progress on our Buy Online,
Pick up in Store and Reserve in Store capabilities, and plan to
launch this functionality ahead of the holiday season. As we start
the second quarter, we believe we are well positioned with fresh
assortments and easier comparisons as we prepare for the
back-to-school season.”
For the quarter, Hibbett opened seven new stores, expanded four
high-performing stores and closed 18 underperforming stores,
bringing the store base to 1,068 in 35 states as of May 5,
2018.
Liquidity and Stock Repurchases
Hibbett ended the first quarter of Fiscal 2019 with $115.8
million of available cash and cash equivalents on the consolidated
balance sheet, no bank debt outstanding and full availability under
its $60.0 million unsecured credit facilities.
During the first quarter, the Company repurchased 40,299 shares
of common stock for a total expenditure of $0.9 million.
Approximately $203.6 million remained authorized for future stock
repurchases as of May 5, 2018.
Fiscal 2019 Outlook
The Company is maintaining its guidance for Fiscal 2019, with
earnings per diluted share in the range of $1.65 to $1.95.
Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00
a.m. ET on Friday, May 25, 2018, to discuss first quarter Fiscal
2019 results. The number to call for the live interactive
teleconference is (212) 231-2907. A replay of the conference
call will be available until June 1, 2018, by dialing
(402) 977-9140 and entering the passcode, 21887007.
The Company will also provide an online Web simulcast and
rebroadcast of its first quarter Fiscal 2019 conference call. The
live broadcast of Hibbett’s quarterly conference call will be
available online at www.hibbett.com under Investor Relations on May
25, 2018, beginning at 10:00 a.m. ET. The online replay will follow
shortly after the call and be available for replay for 30 days.
Hibbett Sports, headquartered in Birmingham, Alabama, is a
leading athletic-inspired fashion retailer with more than 1,000
stores, primarily located in small and mid-sized communities across
the country. Founded in 1945, Hibbett stores have a rich history of
convenient locations, personalized customer service and access to
coveted footwear, apparel and equipment from top brands like Nike,
Under Armour and Adidas. Consumers can browse styles, find new
releases, shop looks and make purchases online or in their nearest
store by visiting www.hibbett.com. Follow us @HibbettSports.
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 earnings per diluted share, the impact
of our mobile app and expectations around our Buy Online, Pick up
in Store and Reserve in Store capabilities. 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 30, 2018. In light of these risks and
uncertainties, the future events, developments or results described
by our forward looking statements in this document could 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 5, April 29, 2018
2017 Net sales $ 274,707 $ 275,688 Cost of goods sold
177,934 177,470 Gross margin 96,773 98,218 Store operating,
selling and administrative expenses 61,904 58,337 Depreciation and
amortization 6,248 5,713 Operating income 28,621
34,168 Interest expense, net 57 66 Income before
provision for income taxes 28,564 34,102 Provision for income taxes
7,055 13,192 Net income $ 21,509 $ 20,910 Net
income per common share: Basic earnings per share $ 1.13 $ 0.98
Diluted earnings per share $ 1.12 $ 0.97 Weighted average
shares outstanding: Basic 18,970 21,316 Diluted
19,143 21,466
HIBBETT SPORTS,
INC. AND SUBSIDIARIES Unaudited Condensed Consolidated
Balance Sheets (In thousands)
May 5, February
3, 2018 2018 Assets Cash and cash
equivalents $ 115,827 $ 73,544 Inventories, net 229,109 253,201
Other current assets 18,840 20,029 Total current
assets 363,776 346,774 Property and equipment, net 107,132 109,698
Other assets 4,341 5,374 Total assets $ 475,249 $
461,846
Liabilities and Stockholders' Investment
Accounts payable $ 83,406 $ 93,435 Short-term capital leases 641
663 Accrued expenses 23,206 21,469 Total current
liabilities 107,253 115,567 Non-current liabilities 26,313 26,683
Stockholders' investment 341,683 319,596 Total
liabilities and stockholders' investment $ 475,249 $ 461,846
HIBBETT SPORTS, INC. AND SUBSIDIARIES
Supplemental Information (Unaudited)
Thirteen Weeks Ended May 5, April 29,
2018 2017 Sales Information Net
sales decrease -0.4 % -2.3 % Comparable store sales decrease -0.3
%1 -4.9 %2
Store Count Information
Beginning of period 1,079 1,078 New stores opened 7 13 Stores
closed (18 ) (9 ) End of period 1,068
1,082 Stores expanded 4 4 Estimated square
footage at end of period (in thousands) 6,094 6,158
Balance Sheet Information Average inventory per
store $ 214,521 $ 230,461
Share Repurchase
Program Shares 40,299 748,134 Cost (in thousands) $ 871
$ 22,337 1) Represents the decrease in comparable store
sales from the 13 weeks ended May 5, 2018, to the 13 weeks ended
May 4, 2017. 2) As originally reported for the first quarter ended
April 29, 2017. The comparable store sales decrease was 4.8%
adjusted for the week shift due to the 53rd week in Fiscal 2018.
HIBBETT SPORTS, INC. AND SUBSIDIARIES
Fiscal 2018 Comparable Store Sales and Net Sales As
Originally Reported and Adjusted for Week Shift (a)
(Unaudited) Fiscal
2018 First Second Third Fourth Full Quarter Quarter
Quarter Quarter Year Comparable store sales
increase (originally reported) -4.9 % -11.7 % -1.3 % 1.6 % -3.8 %
Comparable store sales increase (adjusted for week shift)
-4.8 % -11.0 % 0.3 % 1.0
% -3.6 % Impact of week shift 0.1 % 0.7 % 1.6 % -0.6
% 0.2 %
Fiscal 2018 First Second Third Fourth
Quarter Quarter Quarter Quarter
Full Year
Net sales (originally reported) $ 275.7 $ 188.0 $ 237.8 $ 266.7 $
968.2 Net sales (adjusted for one week) $ 275.2 $
206.0 $ 220.6 $ 265.8 $
967.6 Impact of week shift $ (0.5 ) $ 18.0 $ (17.2 ) $ (0.9
) $ (0.6 ) (a) Due to the 53rd week in Fiscal 2018, each
quarter in Fiscal 2019 starts one week later than the same quarter
in Fiscal 2018. The charts above present comparable store sales and
net sales for Fiscal 2018 as originally reported and as adjusted to
represent the same 13-week period as the Fiscal 2019 quarters.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180525005041/en/
Hibbett Sports, Inc.Scott J. Bowman, 205-942-4292Senior Vice
President & Chief Financial Officer
Hibbett (NASDAQ:HIBB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hibbett (NASDAQ:HIBB)
Historical Stock Chart
From Apr 2023 to Apr 2024