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:

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