Hibbett Reports First Quarter Fiscal 2016 Results
May 22, 2015
Download PDF- Revises Fiscal 2016 Guidance
- Store Base Expands to 1,001 Stores In 32 States
BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 22, 2015-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the first quarter ended May 2, 2015.
First Quarter Results
Net sales increased 3.0% to $269.8 million for the 13-week period ended May 2, 2015, compared with $261.9 million for the 13-week period ended May 3, 2014. Comparable store sales decreased 0.9%.
Jeff Rosenthal, President and Chief Executive Officer, stated, “We experienced early headwinds in the quarter, with February posting a negative high-single-digit comp due to impacts from weather-related closures, port delays and a shift in the timing of tax refunds. We were pleased with our performance in March and April, and we have seen this trend improve in May.”
Gross profit was 37.0% of net sales for the 13-week period ended May 2, 2015, compared with 37.5% for the 13-week period ended May 3, 2014. The decline was mainly due to markdowns taken to sell through merchandise related to slow sales in February due to store closures. Store occupancy costs also increased as a percentage of net sales due to lower-than-anticipated comparable store sales.
Store operating, selling and administrative expenses were 19.2% of net sales for the 13-week period ended May 2, 2015, compared with 18.7% of net sales for the 13-week period ended May 3, 2014. These expenses were higher as a percentage of net sales due to lower-than-anticipated comparable store sales.
Net income was $27.4 million for the 13-week period ended May 2, 2015, compared with $28.4 million for the 13-week period ended May 3, 2014. Earnings per diluted share totaled $1.09 for both the 13-week period ended May 2, 2015, and the 13-week period ended May 3, 2014.
For the quarter, Hibbett opened 15 new stores, expanded 3 high performing stores and closed 2 underperforming stores, bringing the store base to 1,001 in 32 states as of May 2, 2015. The Company also opened its first store in New Jersey in the quarter.
Liquidity and Stock Repurchases
Hibbett ended the first quarter of Fiscal 2016 with $119.1 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 194,764 shares of common stock for a total expenditure of $9.5 million. Approximately $166.0 million of the total authorization remained for future stock repurchases as of May 2, 2015.
Fiscal 2016 Outlook
The Company is revising its guidance for the 52 weeks ending January 30, 2016, to earnings per diluted share in the range of $2.95 to $3.04, with comparable store sales in the low single-digit range, and a flat to slightly negative product gross margin rate compared to Fiscal 2015. This compares with previous guidance of earnings per diluted share in the range of $2.95 to $3.09, with comparable store sales in the low-to-mid single digit range, and a slightly positive product gross margin rate compared to Fiscal 2015.
Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, May 22, 2015, to discuss first quarter results. The number to call for the live interactive teleconference is (212) 231-2926. A replay of the conference call will be available until May 29, 2015, by dialing (402) 977-9140 and entering the passcode, 21766453.
The Company will also provide an online Web simulcast and rebroadcast of its first quarter conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations on May 22, 2015, 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 plans, sales trends, margin trends, inventory mix and pricing, progress on major initiatives, earnings per diluted share, comparable store sales and product gross margin rate. 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, 2015. 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 2, 2015 | May 3, 2014 | |||||||
| Net sales | $ | 269,823 | $ | 261,909 | ||||
| Cost of goods sold, including wholesale, logistics and store occupancy costs | 170,115 | 163,713 | ||||||
| Gross profit | 99,708 | 98,196 | ||||||
| Store operating, selling and administrative expenses | 51,763 | 48,952 | ||||||
| Depreciation and amortization | 4,142 | 3,580 | ||||||
| Operating income | 43,803 | 45,664 | ||||||
| Interest expense, net | 70 | 73 | ||||||
| Income before provision for income taxes | 43,733 | 45,591 | ||||||
| Provision for income taxes | 16,325 | 17,203 | ||||||
| Net income | $ | 27,408 | $ | 28,388 | ||||
| Net income per common share: | ||||||||
| Basic earnings per share | $ | 1.10 | $ | 1.10 | ||||
| Diluted earnings per share | $ | 1.09 | $ | 1.09 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 24,860 | 25,846 | ||||||
| Diluted | 25,069 | 26,131 | ||||||
| HIBBETT SPORTS, INC. AND SUBSIDIARIES | ||||||||
| Unaudited Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| May 2, 2015 | January 31, 2015 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 119,089 | $ | 88,397 | ||||
| Inventories, net | 233,359 | 240,408 | ||||||
| Other current assets | 22,565 | 26,693 | ||||||
| Total current assets | 375,013 | 355,498 | ||||||
| Property and equipment, net | 93,718 | 92,981 | ||||||
| Other assets | 3,889 | 3,918 | ||||||
| Total assets | $ | 472,620 | $ | 452,397 | ||||
| Liabilities and Stockholders' Investment | ||||||||
| Accounts payable | $ | 74,526 | $ | 84,439 | ||||
| Short-term capital leases | 449 | 436 | ||||||
| Accrued expenses | 25,237 | 17,250 | ||||||
| Total current liabilities | 100,212 | 102,125 | ||||||
| Non-current liabilities | 25,946 | 25,491 | ||||||
| Stockholders' investment | 346,462 | 324,781 | ||||||
| Total liabilities and stockholders' investment | $ | 472,620 | $ | 452,397 | ||||
| HIBBETT SPORTS, INC. AND SUBSIDIARIES | ||||||||||
| Supplemental Information | ||||||||||
| (Unaudited) | ||||||||||
| Thirteen Weeks Ended | ||||||||||
| May 2, 2015 | May 3, 2014 | |||||||||
|
Sales Information |
||||||||||
| Net sales increase | 3.0 | % | 9.1 | % | ||||||
| Comparable store sales (decrease) increase | -0.9 | % | 4.1 | % | ||||||
|
Store Count Information |
||||||||||
| Beginning of period | 988 | 927 | ||||||||
| New stores opened | 15 | 16 | ||||||||
| Stores closed | (2 | ) | (4 | ) | ||||||
| End of period | 1,001 | 939 | ||||||||
| Stores expanded | 3 | 4 | ||||||||
| Estimated square footage at end of period (in thousands) | 5,724 | 5,408 | ||||||||
|
Balance Sheet Information |
||||||||||
| Average inventory per store | $ | 233,125 | $ | 219,742 | ||||||
|
Share Repurchase Activity |
||||||||||
| Shares | 194,764 | 277,443 | ||||||||
| Cost (in thousands) | $ | 9,464 | $ | 15,317 | ||||||
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Source: Hibbett Sports, Inc.
Hibbett Sports, Inc.
Scott J. Bowman, 205-942-4292
Senior Vice President &
Chief Financial Officer