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    Hibbett Reports Fourth Quarter and Fiscal 2016 Results

    March 11, 2016
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    BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB):

    • EPS of $0.76 in Fourth Quarter
    • Comparable Store Sales Decrease 0.6% in Fourth Quarter
    • Issues Fiscal 2017 Outlook

    Hibbett Sports, Inc. (NASDAQ/GS: HIBB), an athletic specialty retailer, today announced results for the fourth quarter and fiscal year ended January 30, 2016.

    Fourth Quarter Results

    Net sales for the 13-week period ended January 30, 2016, increased 2.7% to $245.7 million compared with $239.3 million for the 13-week period ended January 31, 2015. Comparable store sales decreased 0.6%.

    Gross profit was 34.8% of net sales for the 13-week period ended January 30, 2016, compared with 35.5% for the 13-week period ended January 31, 2015.

    Store operating, selling and administrative expenses were 21.8% of net sales for the 13-week period ended January 30, 2016, compared with 20.4% of net sales for the 13-week period ended January 31, 2015.

    Net income for the 13-week period ended January 30, 2016, was $17.4 million compared with $19.9 million for the 13-week period ended January 31, 2015. Earnings per diluted share was $0.76 for the 13-week period ended January 30, 2016, compared with $0.79 for the 13-week period ended January 31, 2015.

    Jeff Rosenthal, President and Chief Executive Officer, stated, “We were very pleased with our holiday sales driven by improved assortments, new items, and improved replenishment capability. Sales softened in January as we experienced significant weather related closures and delays in tax refunds. Looking forward, we are confident that our merchandising initiatives will continue to provide benefits as we enter the important spring season. Additionally, we are very excited with our hiring of a Vice President of Digital Commerce who will provide the leadership and guidance necessary to drive our ongoing omni-channel initiative.”

    Fiscal 2016 Results

    Net sales for the 52-week period ended January 30, 2016, increased 3.2% to $943.1 million compared with $913.5 million for the 52-week period ended January 31, 2015. Comparable store sales decreased 0.4%.

    Gross profit was 35.3% of net sales for the 52-week period ended January 30, 2016, compared with 35.8% for the 52-week period ended January 31, 2015.

    Store operating, selling and administrative expenses were 21.6% of net sales for the 52-week period ended January 30, 2016, compared with 21.1% of net sales for the 52-week period ended January 31, 2015.

    Net income for the 52-week period ended January 30, 2016, was $70.5 million compared with $73.6 million for the 52-week period ended January 31, 2015. Earnings per diluted share was $2.92 for the 52-week period ended January 30, 2016, compared with $2.87 for the 52-week period ended January 31, 2015.

    For the year, Hibbett opened 71 new stores, expanded 16 high performing stores and closed 15 underperforming stores, bringing the store base to 1,044 in 33 states as of January 30, 2016.

    Liquidity and Stock Repurchases

    Hibbett ended the fourth quarter of Fiscal 2016 with $32.3 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 fourth quarter, the Company repurchased 99,000 shares of common stock for a total expenditure of $3.4 million. The Company’s Board of Directors approved a new authorization of $300.0 million in November 2015 and the total authorization was available for future stock repurchases as of January 30, 2016.

    Fiscal 2017 Outlook

    The Company provided the following guidance for Fiscal 2017:

    • Earnings per diluted share in the range of $2.90 to $3.04.
    • Increase in comparable store sales in the low single digit range.
    • Approximately 40 to 50 net new stores.
    • Relatively flat product gross margin rate compared to Fiscal 2016.
    • An estimated incremental reduction of $0.14 to $0.16 per diluted share due to our ongoing omni-channel initiative. This will include the rollout of a new point-of-sale system across all stores, preparation of our Store-to-Home capability, and early development of our digital commerce capability. Included in this estimate is approximately $0.08 per diluted share for depreciation.
    • Capital expenditures of approximately $35 million to $40 million.

    Investor Conference Call and Simulcast

    Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 11, 2016, to discuss fourth quarter and Fiscal 2016 results. The number to call for the live interactive teleconference is (212) 231-2910. A replay of the conference call will be available until March 18, 2016, by dialing (402) 977-9140 and entering the passcode, 21802839.

    The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter and Fiscal 2016 conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations on March 11, 2016, 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 athletic specialty 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, earnings per diluted share, comparable store sales, product gross margin rates, capital expenditures, merchandising initiatives and the impact of our omni-channel initiative. 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 and in our Quarterly Reports on Form 10-Q filed on June 8, 2015, September 8, 2015 and December 8, 2015. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could 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 Fifty-Two Weeks Ended
    January 30, January 31, January 30, January 31,
    2016   2015   2016   2015
    Net sales $ 245,719 $ 239,338 $ 943,104 $ 913,486
    Cost of goods sold, wholesale and logistics facility and store occupancy costs   160,250   154,308   610,389   586,702
    Gross profit 85,469 85,030 332,715 326,784
    Store operating, selling and administrative expenses 53,467 48,870 203,673 192,648
    Depreciation and amortization   4,382   4,213   17,038   15,990
    Operating income 27,620 31,947 112,004 118,146
    Interest expense, net   90   76   292   293
    Income before provision for income taxes 27,530 31,871 111,712 117,853
    Provision for income taxes   10,119   11,946   41,184   44,269
    Net income $ 17,411 $ 19,925 $ 70,528 $ 73,584
     
    Net income per common share:
    Basic earnings per share $ 0.76 $ 0.80 $ 2.95 $ 2.90
    Diluted earnings per share $ 0.76 $ 0.79 $ 2.92 $ 2.87
     
    Weighted average shares outstanding:
    Basic   22,790   24,965   23,947   25,369
    Diluted   22,960   25,205   24,129   25,620
     
       
    HIBBETT SPORTS, INC. AND SUBSIDIARIES
    Unaudited Condensed Consolidated Balance Sheets
    (In thousands)
     
    January 30, January 31,
    2016   2015
    Assets
    Cash and cash equivalents $ 32,274 $ 88,397
    Inventories, net 283,099 240,408
    Other current assets   14,995   26,693
    Total current assets 330,368 355,498
    Property and equipment, net 101,389 92,981
    Other assets   10,615   3,918
    Total assets $ 442,372 $ 452,397
     
    Liabilities and Stockholders' Investment
    Accounts payable $ 88,456 $ 84,439
    Short-term capital leases 478 436
    Accrued expenses   16,256   17,250
    Total current liabilities 105,190 102,125
    Non-current liabilities 26,336 25,491
    Stockholders' investment   310,846   324,781
    Total liabilities and stockholders' investment $ 442,372 $ 452,397
     
           
    HIBBETT SPORTS, INC. AND SUBSIDIARIES
    Supplemental Information
    (Unaudited)
     
    Thirteen Weeks Ended Fifty-Two Weeks Ended
    January 30, January 31, January 30, January 31,
    2016 2015 2016 2015

    Sales Information

    Net sales increase

    		2.7 % 9.9 % 3.2 % 7.2 %
    Comparable store sales (decrease) increase -0.6 % 5.4 % -0.4 % 2.9 %
     

    Store Count Information

    Beginning of period 1,031 969 988 927
    New stores opened 20 22 71 80
    Stores closed   (7 )   (3 )   (15 )   (19 )
    End of period   1,044     988     1,044     988  
     
    Stores expanded 8 2 16 9
    Estimated square footage at end of period (in thousands) 5,974 5,649
     

    Balance Sheet Information

    Average inventory per store $ 271,168 $ 243,328
     

    Share Repurchase Program

    Shares 99,000 133,711 2,236,389 1,206,006
    Cost (in thousands) $ 3,389 $ 6,394 $ 91,333 $ 60,971
     

    Hibbett Sports, Inc.
    Scott J. Bowman, 205-942-4292
    Senior Vice President & Chief Financial Officer

    Source: Hibbett Sports, Inc.

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