Hibbett Reports First Quarter Fiscal 2018 Results
May 18, 2017
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-
First Quarter EPS of
$0.97 in Line with Recent Business Update - Comparable Store Sales Decrease 4.9% in First Quarter
- Updates Fiscal 2018 Outlook
First Quarter Results
Net sales for the 13-week period ended
Gross profit was 35.6% of net sales for the 13-week period ended
Store operating, selling and administrative expenses were 21.2% of net
sales for the 13-week period ended
Net income for the 13-week period ended
“During the quarter, we implemented our store-to-home capability in all stores, and we are encouraged by the early results,” Rosenthal continued. “We expect to see increased benefits from this initiative going forward, as it gives our stores a great tool to improve sales and to enhance the customer experience. Additionally, we are excited about the continued progress on our e-commerce initiative and remain on track to launch this capability in the third quarter.”
For the quarter, Hibbett opened 13 new stores, expanded four high
performing stores and closed nine underperforming stores, bringing the
store base to 1,082 in 35 states as of
Liquidity and Stock Repurchases
Hibbett ended the first quarter of Fiscal 2018 with
During the first quarter, the Company repurchased 748,134 shares of
common stock for a total expenditure of
Fiscal 2018 Outlook
The Company is updating its guidance for Fiscal 2018 with the following changes:
-
Earnings per diluted share in the range of
$2.35 to$2.55 (as reported in the recent business update), which compares with previous guidance of$2.65 to$2.85 . - Comparable store sales in the range of negative 1.0% to positive 1.0%, which compares with previous guidance of an increase in the low single-digit range.
- A reduction in gross margin rate of 55-75 basis points, which compares with previous guidance of a relatively flat gross margin rate compared with Fiscal 2017.
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its first 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 and merchandising 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 | ||||||||
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2017 |
2016 |
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| Net sales | $ | 275,688 | $ | 282,092 | ||||
| Cost of goods sold, wholesale and logistics facility and store occupancy costs | 177,470 | 177,090 | ||||||
| Gross profit | 98,218 | 105,002 | ||||||
| Store operating, selling and administrative expenses | 58,337 | 56,061 | ||||||
| Depreciation and amortization | 5,713 | 4,599 | ||||||
| Operating income | 34,168 | 44,342 | ||||||
| Interest expense, net | 66 | 65 | ||||||
| Income before provision for income taxes | 34,102 | 44,277 | ||||||
| Provision for income taxes | 13,192 | 16,371 | ||||||
| Net income | $ | 20,910 | $ | 27,906 | ||||
| Net income per common share: | ||||||||
| Basic earnings per share | $ | 0.98 | $ | 1.23 | ||||
| Diluted earnings per share | $ | 0.97 | $ | 1.22 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 21,316 | 22,780 | ||||||
| Diluted | 21,467 | 22,947 | ||||||
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| Unaudited Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
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2017 |
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| Assets | ||||||||
| Cash and cash equivalents | $ | 75,856 | $ | 38,958 | ||||
| Inventories, net | 249,359 | 280,701 | ||||||
| Other current assets | 13,664 | 18,605 | ||||||
| Total current assets | 338,879 | 338,264 | ||||||
| Property and equipment, net | 113,313 | 111,634 | ||||||
| Other assets | 6,590 | 8,956 | ||||||
| Total assets | $ | 458,782 | $ | 458,854 | ||||
| Liabilities and Stockholders' Investment | ||||||||
| Accounts payable | $ | 69,922 | $ | 77,046 | ||||
| Short-term capital leases | 603 | 595 | ||||||
| Accrued expenses | 24,021 | 18,431 | ||||||
| Total current liabilities | 94,546 | 96,072 | ||||||
| Non-current liabilities | 29,048 | 28,742 | ||||||
| Stockholders' investment | 335,188 | 334,040 | ||||||
| Total liabilities and stockholders' investment | $ | 458,782 | $ | 458,854 | ||||
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| Supplemental Information | ||||||||||
| (Unaudited) | ||||||||||
| Thirteen Weeks Ended | ||||||||||
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2017 |
2016 |
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Sales Information |
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| Net sales (decrease) increase | -2.3 | % | 4.6 | % | ||||||
| Comparable store sales (decrease) increase | -4.9 | % | 1.1 | % | ||||||
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Store Count Information |
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| Beginning of period | 1,078 | 1,044 | ||||||||
| New stores opened | 13 | 17 | ||||||||
| Stores closed | (9 | ) | (8 | ) | ||||||
| End of period | 1,082 | 1,053 | ||||||||
| Stores expanded | 4 | 1 | ||||||||
| Estimated square footage at end of period (in thousands) | 6,158 | 6,019 | ||||||||
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Balance Sheet Information |
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| Average inventory per store | $ | 230,461 | $ | 239,166 | ||||||
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Share Repurchase Program |
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| Shares | 748,134 | 237,382 | ||||||||
| Cost (in thousands) | $ | 22,337 | $ | 8,316 | ||||||
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Senior Vice
President & Chief Financial Officer
Source: