Hibbett Reports Second Quarter Fiscal 2018 Results
August 18, 2017
Download PDF
-
Second Quarter Loss of
$0.15 Per Share - Comparable Store Sales Decrease 11.7% in Second Quarter
- E-commerce Sales Off to Strong Start
- Updates Fiscal 2018 Outlook
Second Quarter Results
Net sales for the 13-week period ended
Gross margin was 28.9% of net sales for the 13-week period ended
Store operating, selling and administrative expenses were 28.5% of net
sales for the 13-week period ended
Net loss for the 13-week period ended
For the quarter, Hibbett opened six new stores, expanded four high
performing stores and closed eight underperforming stores, bringing the
store base to 1,080 in 35 states as of
Fiscal Year to Date Results
Net sales for the 26-week period ended
Gross margin was 32.9% of net sales for the 26-week period ended
Store operating, selling and administrative expenses were 24.1% of net
sales for the 26-week period ended
Net income for the 26-week period ended
Liquidity and Stock Repurchases
Hibbett ended the second quarter of Fiscal 2018 with
During the second quarter, the Company repurchased 282,609 shares of
common stock for a total expenditure of
Fiscal 2018 Outlook
The Company is updating its guidance for Fiscal 2018 based on the following assumptions:
- Continued soft sales for the remainder of the year due to a challenging retail environment.
- A growing contribution of e-commerce sales, especially during the holiday season.
- Gross margin pressure due to the promotional environment in our industry, the ramp-up of our e-commerce sales, and markdowns needed to reduce aged inventory.
- Continued tight expense controls while maintaining adequate store staffing levels.
Based on these assumptions, the Company is updating its guidance with the following changes:
-
Earnings per diluted share in the range of
$1.25 to$1.35 , which compares with previous guidance of$2.35 to$2.55 . - Comparable store sales in the negative mid to high single-digit range, which compares with previous guidance in the range of negative 1.0% to positive 1.0%.
- A reduction in gross margin rate of 250 to 285 basis points, which compares with previous guidance of a reduction in gross margin rate of 55 to 75 basis points compared with Fiscal 2017.
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its second quarter Fiscal 2018 conference call. The live broadcast of
Hibbett’s quarterly conference call will be available online at www.hibbett.com
under Investor Relations on
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, comparable store sales, product gross margin
rates, the future retail environment, growth in our e-commerce business,
implementation of store improvement initiatives, staffing and expense
levels, and markdowns of inventory. 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
|
|||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||
|
|
|
|
||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
Net sales | $ | 187,958 | $ | 206,933 | $ | 463,646 | $ | 489,026 | |||||
Cost of goods sold, wholesale and logistics facility and store occupancy costs |
133,550 | 138,676 | 311,020 | 315,767 | |||||||||
Gross margin | 54,408 | 68,257 | 152,626 | 173,259 | |||||||||
Store operating, selling and administrative expenses | 53,556 | 53,501 | 111,893 | 109,562 | |||||||||
Depreciation and amortization | 6,014 | 4,638 | 11,726 | 9,238 | |||||||||
Operating (loss) income | (5,162 | ) | 10,118 | 29,007 | 54,459 | ||||||||
Interest expense, net | 56 | 62 | 124 | 127 | |||||||||
(Loss) income before provision for income taxes | (5,218 | ) | 10,056 | 28,883 | 54,332 | ||||||||
Provision for income taxes | (2,042 | ) | 3,546 | 11,150 | 19,916 | ||||||||
Net (loss) income | $ | (3,176 | ) | $ | 6,510 | $ | 17,733 | $ | 34,416 | ||||
Net (loss) income per common share: | |||||||||||||
Basic earnings per share | $ | (0.15 | ) | $ | 0.29 | $ | 0.84 | $ | 1.53 | ||||
Diluted earnings per share | $ | (0.15 | ) | $ | 0.29 | $ | 0.84 | $ | 1.52 | ||||
Weighted average shares outstanding: | |||||||||||||
Basic | 20,781 | 22,281 | 21,049 | 22,531 | |||||||||
Diluted | 20,781 | 22,442 | 21,124 | 22,695 | |||||||||
|
||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
|
|
|||||
2017 | 2017 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 52,760 | $ | 38,958 | ||
Inventories, net | 276,430 | 280,701 | ||||
Other current assets | 21,043 | 18,605 | ||||
Total current assets | 350,233 | 338,264 | ||||
Property and equipment, net | 113,734 | 111,634 | ||||
Other assets | 6,018 | 8,956 | ||||
Total assets | $ | 469,985 | $ | 458,854 | ||
Liabilities and Stockholders' Investment | ||||||
Accounts payable | $ | 98,882 | $ | 77,046 | ||
Short-term capital leases | 612 | 595 | ||||
Accrued expenses | 17,088 | 18,431 | ||||
Total current liabilities | 116,582 | 96,072 | ||||
Non-current liabilities | 27,565 | 28,742 | ||||
Stockholders' investment | 325,838 | 334,040 | ||||
Total liabilities and stockholders' investment | $ | 469,985 | $ | 458,854 | ||
|
||||||||||||||||
Supplemental Information | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
|
|
|
|
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Sales Information |
||||||||||||||||
Net sales (decrease) increase | -9.2 | % | 3.9 | % | -5.2 | % | 4.3 | % | ||||||||
Comparable store sales (decrease) increase | -11.7 | % | 0.8 | % | -7.7 | % | 1.1 | % | ||||||||
Store Count Information |
||||||||||||||||
Beginning of period | 1,082 | 1,053 | 1,078 | 1,044 | ||||||||||||
New stores opened | 6 | 14 | 19 | 31 | ||||||||||||
Stores closed | (8 | ) | (8 | ) | (17 | ) | (16 | ) | ||||||||
End of period | 1,080 | 1,059 | 1,080 | 1,059 | ||||||||||||
Stores expanded | 4 | 1 | 8 | 2 | ||||||||||||
Estimated square footage at end of period (in thousands) | 6,147 | 6,050 | ||||||||||||||
Balance Sheet Information |
||||||||||||||||
Average inventory per store | $ | 255,954 | $ | 276,587 | ||||||||||||
Share Repurchase Program |
||||||||||||||||
Shares | 282,609 | 620,455 | 1,030,743 | 857,837 | ||||||||||||
Cost (in thousands) | $ | 6,913 | $ | 21,376 | $ | 29,251 | $ | 29,693 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170818005050/en/
Senior Vice
President & Chief Financial Officer
Source: