Hibbett Reports Second Quarter Fiscal 2019 Results
August 24, 2018
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- Comparable Sales Increase 4.1% in Second Quarter
- E-Commerce Sales Accelerate to 8.0% of Total Sales
- Gross Margin Improves 248 Basis Points from Prior Year
-
Second Quarter Loss Narrows to
$0.06 Per Share - Updates Fiscal 2019 Outlook
Second Quarter Results
Net sales for the 13-week period ended
Gross margin was 31.4% of net sales for the 13-week period ended
Store operating, selling and administrative expenses were 29.4% 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, relocated or
remodeled three stores and closed 15 underperforming stores, bringing
the store base to 1,059 in 35 states as of
Fiscal Year to Date Results
Net sales for the 26-week period ended
Gross margin was 33.6% of net sales for the 26-week period ended
Store operating, selling and administrative expenses were 25.5% 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 2019 with
During the second quarter, the Company repurchased 336,302 shares of
common stock for a total expenditure of
Fiscal 2019 Outlook
The Company is updating its guidance for Fiscal 2019 with the following changes:
-
Earnings per diluted share in the range of
$1.57 to$1.75 , which compares with previous guidance of$1.65 to$1.95 . - Comparable sales in the range of -1.0% to 1.0%, which compares with previous guidance in the range of -1.0% to 2.0%.
- SG&A expense increase of 7.0% to 9.0%, which compares with previous guidance in the range of 6.0% to 8.0%.
-
Capital expenditures of approximately
$18.0 million to$22.0 million , which compares with previous guidance in the range of$20.0 million to$25.0 million .
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its second quarter Fiscal 2019 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 sales, SG&A expenses and capital
expenditures and expectations around improvement in our assortments and
our Buy Online, Pick up in Store and Reserve in Store capabilities. 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 | Twenty-Six Weeks Ended | ||||||||||||||
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2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 211,123 | $ | 187,958 | $ | 485,830 | $ | 463,646 | |||||||
Cost of goods sold | 144,772 | 133,550 | 322,706 | 311,020 | |||||||||||
Gross margin | 66,351 | 54,408 | 163,124 | 152,626 | |||||||||||
Store operating, selling and administrative expenses | 61,965 | 53,556 | 123,869 | 111,893 | |||||||||||
Depreciation and amortization | 6,271 | 6,014 | 12,519 | 11,726 | |||||||||||
Operating (loss) income | (1,885 | ) | (5,162 | ) | 26,736 | 29,007 | |||||||||
Interest (income) expense, net | (167 | ) | 56 | (111 | ) | 124 | |||||||||
(Loss) income before provision for income taxes | (1,718 | ) | (5,218 | ) | 26,847 | 28,883 | |||||||||
(Benefit) provision for income taxes | (496 | ) | (2,042 | ) | 6,560 | 11,150 | |||||||||
Net (loss) income | $ | (1,222 | ) | $ | (3,176 | ) | $ | 20,287 | $ | 17,733 | |||||
Basic (loss) earnings per share | $ | (0.06 | ) | $ | (0.15 | ) | $ | 1.07 | $ | 0.84 | |||||
Diluted (loss) earnings per share | $ | (0.06 | ) | $ | (0.15 | ) | $ | 1.06 | $ | 0.84 | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 18,823 | 20,781 | 18,896 | 21,049 | |||||||||||
Diluted | 18,823 | 20,781 | 19,079 | 21,124 | |||||||||||
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Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
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2018 | 2018 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 119,591 | $ | 73,544 | ||
Inventories, net | 248,135 | 253,201 | ||||
Other current assets | 21,013 | 20,029 | ||||
Total current assets | 388,739 | 346,774 | ||||
Property and equipment, net | 104,420 | 109,698 | ||||
Other assets | 4,820 | 5,374 | ||||
Total assets | $ | 497,979 | $ | 461,846 | ||
Liabilities and Stockholders' Investment | ||||||
Accounts payable | $ | 112,759 | $ | 93,435 | ||
Short-term capital leases | 643 | 663 | ||||
Accrued expenses | 25,890 | 21,469 | ||||
Total current liabilities | 139,292 | 115,567 | ||||
Non-current liabilities | 25,136 | 26,683 | ||||
Stockholders' investment | 333,551 | 319,596 | ||||
Total liabilities and stockholders' investment | $ | 497,979 | $ | 461,846 | ||
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Supplemental Information | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Sales Information |
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Net sales increase (decrease) | 12.3 | % | -9.2 | % | 4.8 | % | -5.2 | % | ||||||||
Comparable sales increase (decrease) | 4.1 | %(1) | -11.7 | %(2) | 1.7 | %(1) | -7.7 | %(2) | ||||||||
Store Count Information |
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Beginning of period | 1,068 | 1,082 | 1,079 | 1,078 | ||||||||||||
New stores opened | 6 | 6 | 13 | 19 | ||||||||||||
Stores closed | (15 | ) | (8 | ) | (33 | ) | (17 | ) | ||||||||
End of period | 1,059 | 1,080 | 1,059 | 1,080 | ||||||||||||
Stores expanded, remodeled or relocated | 3 | 5 | 8 | 10 | ||||||||||||
Estimated square footage at end of period (in thousands) | 6,048 | 6,147 | ||||||||||||||
Balance Sheet Information |
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Average inventory per store | $ | 234,311 | $ | 255,954 | ||||||||||||
Share Repurchase Program |
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Shares | 336,302 | 282,609 | 376,601 | 1,030,743 | ||||||||||||
Cost (in thousands) | $ | 7,978 | $ | 6,913 | $ | 8,848 | $ | 29,251 | ||||||||
1) Represents the increase in comparable sales from the 13 weeks and
26 weeks ended |
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2) As originally reported for the second quarter ended |
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Fiscal 2018 Comparable Sales and |
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As Originally Reported and Adjusted for Week Shift (a) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Fiscal 2018 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||
Comparable sales (originally reported) | -4.9 | % | -11.7 | % | -1.3 | % | 1.6 | % | -3.8 | % | ||||||||||
Comparable sales (adjusted for week shift) | -4.8 | % | -11.0 | % | 0.3 | % | 1.0 | % | -3.6 | % | ||||||||||
Impact of week shift | 0.1 | % | 0.7 | % | 1.6 | % | -0.6 | % | 0.2 | % | ||||||||||
Fiscal 2018 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||
Net sales (originally reported) | $ | 275.7 | $ | 188.0 | $ | 237.8 | $ | 266.7 | $ | 968.2 | ||||||||||
Net sales (adjusted for one week) | $ | 275.2 | $ | 206.0 | $ | 220.6 | $ | 265.8 | $ | 967.6 | ||||||||||
Impact of week shift | $ | (0.5 | ) | $ | 18.0 | $ | (17.2 | ) | $ | (0.9 | ) | $ | (0.6 | ) | ||||||
(a) Due to the 53rd week in Fiscal 2018, each quarter in Fiscal 2019 starts one week later than the same quarter in Fiscal 2018. The charts above present comparable sales and net sales for Fiscal 2018 as originally reported and as adjusted to represent the same 13-week period as the Fiscal 2019 quarters. | ||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180824005019/en/
Senior Vice
President & Chief Financial Officer
Source: