Hibbett Reports Fourth Quarter and Fiscal 2017 Results
March 10, 2017
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Fourth Quarter EPS of
$0.54 in Line with Recent Business Update - Comparable Store Sales Decrease 2.2% in Fourth Quarter
- Issues Fiscal 2018 Outlook
Fourth Quarter Results
Net sales for the 13-week period ended
Gross profit was 33.0% of net sales for the 13-week period ended
Store operating, selling and administrative expenses were 23.2% of net
sales for the 13-week period ended
Net income for the 13-week period ended
“Looking forward, we are excited about the progress we are making on our major initiatives, and expect them to have a favorable impact on revenue growth in Fiscal 2018 and beyond. Our store-to-home capability is scheduled to begin rollout in the first quarter of this year, which will enable us to use our entire chain to locate an item and send it directly to the customer’s home. We are also on track to launch our e-commerce site in the back half of Fiscal 2018, which will be fully integrated with our stores, and will include an enriched customer loyalty program. Once implemented, we believe these initiatives will provide an outstanding customer experience, and will position us well to drive long-term growth and shareholder value.”
Fiscal 2017 Results
Net sales for the 52-week period ended
Gross profit was 34.8% of net sales for the 52-week period ended
Store operating, selling and administrative expenses were 22.9% of net
sales for the 52-week period ended
Net income for the 52-week period ended
For the year, Hibbett opened 65 new stores, expanded 8 high performing
stores and closed 31 underperforming stores, bringing the store base to
1,078 in 35 states as of
Liquidity and Stock Repurchases
Hibbett ended the fourth quarter of Fiscal 2017 with
During the fourth quarter, the Company repurchased 324,200 shares of
common stock for a total expenditure of
Fiscal 2018 Outlook
The Company provided the following guidance for Fiscal 2018, which will have 53 weeks versus 52 weeks in Fiscal 2017:
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Earnings per diluted share in the range of
$2.65 to$2.85 , including an increase of approximately$0.09 to$0.11 per diluted share due to the 53rd week. -
An estimated negative impact of
$0.03 to$0.04 per diluted share due to the Company’s omni-channel initiative. This includes additional SG&A and depreciation expenses, partially offset by additional revenue. - Increase in comparable store sales in the low-single digit range.
- Approximately 50 to 60 new store openings with approximately 25 to 35 store closures.
- Relatively flat gross margin rate compared to Fiscal 2017.
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Capital expenditures of approximately
$25 million to$30 million . -
Share buyback of approximately
$45 million to$55 million .
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its fourth quarter and Fiscal 2017 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 comparable store sales,
revenue growth, gross margin, expenses, earnings per diluted share,
impact of the 53rd week in Fiscal 2018, capital
expenditures, store openings and closings, share repurchases, and the
capabilities and financial impact of our omni-channel initiative,
including store-to-home and e-commerce initiatives. 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
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Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||
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Net sales | $ | 246,929 | $ | 245,719 | $ | 972,960 | $ | 943,104 | |||||||||
Cost of goods sold, wholesale and logistics facility and store occupancy costs | 165,417 | 160,250 | 634,364 | 610,389 | |||||||||||||
Gross profit | 81,512 | 85,469 | 338,596 | 332,715 | |||||||||||||
Store operating, selling and administrative expenses | 57,369 | 53,467 | 222,785 | 203,673 | |||||||||||||
Depreciation and amortization | 5,011 | 4,382 | 19,047 | 17,038 | |||||||||||||
Operating income | 19,132 | 27,620 | 96,764 | 112,004 | |||||||||||||
Interest expense, net | 82 | 90 | 268 | 292 | |||||||||||||
Income before provision for income taxes | 19,050 | 27,530 | 96,496 | 111,712 | |||||||||||||
Provision for income taxes | 6,995 | 10,119 | 35,421 | 41,184 | |||||||||||||
Net income | $ | 12,055 | $ | 17,411 | $ | 61,075 | $ | 70,528 | |||||||||
Net income per common share: | |||||||||||||||||
Basic earnings per share | $ | 0.55 | $ | 0.76 | $ | 2.75 | $ | 2.95 | |||||||||
Diluted earnings per share | $ | 0.54 | $ | 0.76 | $ | 2.72 | $ | 2.92 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 21,910 | 22,790 | 22,240 | 23,947 | |||||||||||||
Diluted | 22,132 | 22,960 | 22,427 | 24,129 | |||||||||||||
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Unaudited Condensed Consolidated Balance Sheets | |||||||||
(In thousands) |
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Assets | |||||||||
Cash and cash equivalents | $ | 38,958 | $ | 32,274 | |||||
Inventories, net | 280,701 | 283,099 | |||||||
Other current assets | 18,605 | 14,995 | |||||||
Total current assets | 338,264 | 330,368 | |||||||
Property and equipment, net | 111,634 | 101,389 | |||||||
Other assets | 8,956 | 10,615 | |||||||
Total assets | $ | 458,854 | $ | 442,372 | |||||
Liabilities and Stockholders' Investment | |||||||||
Accounts payable | $ | 77,046 | $ | 88,456 | |||||
Short-term capital leases | 595 | 478 | |||||||
Accrued expenses | 18,431 | 16,256 | |||||||
Total current liabilities | 96,072 | 105,190 | |||||||
Non-current liabilities | 28,742 | 26,336 | |||||||
Stockholders' investment | 334,040 | 310,846 | |||||||
Total liabilities and stockholders' investment | $ | 458,854 | $ | 442,372 | |||||
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Supplemental Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||
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Sales Information |
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Net sales increase | 0.5 | % | 2.7 | % | 3.2 | % | 3.2 | % | |||||||||||||
Comparable store sales (decrease) increase | -2.2 | % | -0.6 | % | 0.2 | % | -0.4 | % | |||||||||||||
Store Count Information |
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Beginning of period | 1,067 | 1,031 | 1,044 | 988 | |||||||||||||||||
New stores opened | 21 | 20 | 65 | 71 | |||||||||||||||||
Stores closed | (10 | ) | (7 | ) | (31 | ) | (15 | ) | |||||||||||||
End of period | 1,078 | 1,044 | 1,078 | 1,044 | |||||||||||||||||
Stores expanded | 4 | 8 | 8 | 16 | |||||||||||||||||
Estimated square footage at end of period (in thousands) | 6,141 | 5,974 | |||||||||||||||||||
Balance Sheet Information |
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Average inventory per store | $ | 260,390 | $ | 271,168 | |||||||||||||||||
Share Repurchase Program |
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Shares | 324,200 | 99,000 | 1,235,556 | 2,236,389 | |||||||||||||||||
Cost (in thousands) | $ | 11,424 | $ | 3,389 | $ | 43,058 | $ | 91,333 | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170310005076/en/
Senior Vice
President & Chief Financial Officer
Source: