Hibbett Reports First Quarter Fiscal 2014 Results
Hibbett Reports First Quarter Fiscal 2014 Results
Maintains Fiscal 2014 Guidance
Fiscal 2014 New Store Openings to Accelerate
BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the first quarter ended May 4, 2013.
First Quarter Results
Net sales for the 13-week period ended May 4, 2013, increased 3.0% to $240.0 million compared with $232.9 million for the 13-week period ended April 28, 2012. Comparable store sales increased 0.8% on a calendar basis (comparable 13-week period). First quarter Fiscal 2013 comparable store sales increased 11.1%.
Gross profit was 37.9% of net sales for the 13-week period ended May 4, 2013, compared with 38.0% for the 13-week period ended April 28, 2012. Product margin increased 8 basis points as a percentage of net sales, while store occupancy and warehouse expenses increased 18 basis points as a percentage of net sales.
Store operating, selling and administrative expenses were 18.8% of net sales for the 13-week period ended May 4, 2013, compared with 18.4% of net sales for the 13-week period ended April 28, 2012.
Net income for the 13-week period ended May 4, 2013 was $26.2 million compared with $26.4 million for the 13-week period ended April 28, 2012. Earnings per diluted share increased 2.0% to $1.00 for the 13-week period ended May 4, 2013, compared with $0.98 for the 13-week period ended April 28, 2012.
For the quarter, Hibbett opened 9 new stores, expanded 5 high performing stores and closed 3 underperforming stores, bringing the store base to 879 in 29 states as of May 4, 2013. For the quarter ended April 28, 2012, Hibbett opened 7 new stores, expanded 2 high performing stores and closed 4 underperforming stores.
Jeff Rosenthal, President and Chief Executive Officer, stated, "The colder weather clearly affected the performance of some key spring assortments, especially against last year's strong sales performance. Looking forward, we are well positioned for the summer and back-to-school sales periods given our improved aged inventory position, product assortments and excellent customer service. This, coupled with accelerated store growth, gives us confidence in maintaining our full-year guidance as well as increasing our new store opening goal."
Liquidity and Stock Repurchases
Hibbett ended the first quarter of Fiscal 2014 with $103.2 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt outstanding and full availability under its $80.0 million unsecured credit facilities.
During the first quarter, the Company repurchased 99,430 shares of common stock for a total expenditure of $5.4 million. Approximately $244.2 million of the total authorization remained for future stock repurchases as of May 4, 2013.
Fiscal 2014 Outlook
The Company is maintaining its guidance for the 52 weeks ending February 1, 2014 and expects to report diluted earnings per share in the range of $2.85 to $3.05 as well as an increase in comparable store sales (calendar basis) in the low to mid-single digit range. Please note that Fiscal 2013 had an approximate $0.07 benefit in earnings per diluted share due to the 53rd week. For Fiscal 2014, the Company expects to open 70 to 75 new stores, expand approximately 18 high performing stores and close 15 to 20 stores.
Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, May 24, 2013, to discuss first quarter Fiscal 2014 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 31, 2013, by dialing (402) 977-9140 and entering the passcode, 21646058.
The Company will also provide an online Web simulcast and rebroadcast of its first quarter Fiscal 2014 conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations, www.streetevents.com and www.earnings.com, on May 24, 2013, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through May 31, 2013.
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 calendar shifts, earnings per diluted share and comparable store sales.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 April 1, 2013. 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 4, 2013 | April 28, 2012 | |||||
Net sales | $ | 239,993 | $ | 232,914 | ||
Cost of goods sold, distribution center and store occupancy costs | 149,116 | 144,486 | ||||
Gross profit | 90,877 | 88,428 | ||||
Store operating, selling and administrative expenses | 45,113 | 42,803 | ||||
Depreciation and amortization | 3,325 | 3,226 | ||||
Operating income | 42,439 | 42,399 | ||||
Interest expense, net | 45 | 48 | ||||
Income before provision for income taxes | 42,394 | 42,351 | ||||
Provision for income taxes | 16,180 | 15,988 | ||||
Net income | $ | 26,214 | $ | 26,363 | ||
Net income per common share: | ||||||
Basic earnings per share | $ | 1.01 | $ | 1.00 | ||
Diluted earnings per share | $ | 1.00 | $ | 0.98 | ||
Weighted average shares outstanding: | ||||||
Basic | 25,906 | 26,349 | ||||
Diluted | 26,328 | 26,898 | ||||
HIBBETT SPORTS, INC. AND SUBSIDIARIES | ||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
May 4, 2013 | February 2, 2013 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 103,188 | $ | 76,911 | ||
Accounts receivable, net | 9,591 | 5,954 | ||||
Inventories, net | 205,495 | 221,378 | ||||
Prepaid expenses and other | 15,165 | 17,371 | ||||
Total current assets | 333,439 | 321,614 | ||||
Property and equipment, net | 53,905 | 49,076 | ||||
Other assets | 6,937 | 6,641 | ||||
Total assets | $ | 394,281 | $ | 377,331 | ||
Liabilities and Stockholders' Investment | ||||||
Accounts payable | $ | 83,469 | $ | 102,021 | ||
Short-term capital leases | 704 | 714 | ||||
Accrued expenses | 24,653 | 15,980 | ||||
Total current liabilities | 108,826 | 118,715 | ||||
Non-current liabilities | 19,337 | 19,489 | ||||
Stockholders' investment | 266,118 | 239,127 | ||||
Total liabilities and stockholders' investment | $ | 394,281 | $ | 377,331 | ||
HIBBETT SPORTS, INC. AND SUBSIDIARIES | ||||||||
Supplemental Information | ||||||||
(Unaudited) | ||||||||
Thirteen Weeks Ended | ||||||||
May 4, 2013 | April 28, 2012 | |||||||
Sales Information | ||||||||
Net sales increase | 3.0 | % | 14.4 | % | ||||
Comparable store sales increase | 0.8 | %1 | 11.1 | %2 | ||||
Store Count Information | ||||||||
Beginning of period | 873 | 832 | ||||||
New stores opened | 9 | 7 | ||||||
Stores closed | (3 | ) | (4 | ) | ||||
End of period | 879 | 835 | ||||||
Stores expanded | 5 | 2 | ||||||
Estimated square footage at end of period (in thousands) | 5,054 | 4,773 | ||||||
Balance Sheet Information | ||||||||
Average inventory per store | $ | 233,782 | $ | 216,619 | ||||
Share Repurchase Program | ||||||||
Shares | 99,430 | 316,960 | ||||||
Cost (in thousands) | $ | 5,440 | $ | 16,802 | ||||
1) Represents the increase in comparable store sales from the thirteen weeks ended May 5, 2012 to the thirteen weeks ended May 4, 2013. | ||||||||
2) As originally reported for the first quarter ended April 28, 2012. The comparable store sales increase was 8.6% adjusted for the week shift due to the 53rd week in Fiscal 2013. | ||||||||
Due to the 53rd week in Fiscal 2013, each quarter in Fiscal 2014 starts one week later than the same quarter in Fiscal 2013. The chart below presents comparable store sales for Fiscal 2013 as originally reported and as adjusted to represent the same 13-week period as the Fiscal 2014 quarters. | |||||||||||||||
Fiscal 2013 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||
Comparable store sales increase (originally reported) | 11.1 | % | 4.8 | % | 6.4 | % | 4.9 | % | 6.9 | % | |||||
Comparable store sales increase (adjusted for week shift) | 8.6 | % | 12.5 | % | -0.7 | % | 4.4 | % | 6.0 | % | |||||
Impact of week shift | -2.5 | % | 7.7 | % | -7.1 | % | -0.5 | % | -0.9 | % | |||||
Hibbett Sports, Inc.
Scott J. Bowman, 205-942-4292
Senior Vice President & Chief Financial Officer
KEYWORDS: United States North America Alabama
INDUSTRY KEYWORDS:
The article Hibbett Reports First Quarter Fiscal 2014 Results originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
