Hibbett Reports Third Quarter Fiscal 2018 Results
November 17, 2017
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-
Third Quarter EPS of
$0.37 Per Diluted Share - Comparable Store Sales Decrease 1.3% in Third Quarter
- Updates Fiscal 2018 Outlook
Third Quarter Results
Net sales for the 13-week period ended
Gross margin was 32.0% of net sales for the 13-week period ended
Store operating, selling and administrative expenses were 24.4% of net
sales for the 13-week period ended
Net income for the 13-week period ended
For the quarter, Hibbett opened 13 new stores, expanded one
high-performing store and closed 11 underperforming stores, bringing the
store base to 1,082 in 35 states as of
Fiscal Year to Date Results
Net sales for the 39-week period ended
Gross margin was 32.6% of net sales for the 39-week period ended
Store operating, selling and administrative expenses were 24.2% of net
sales for the 39-week period ended
Net income for the 39-week period ended
Liquidity and Stock Repurchases
Hibbett ended the third quarter of Fiscal 2018 with
During the third quarter, the Company repurchased 1.2 million 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
$1.42 to$1.50 , which compares with previous guidance of$1.25 to$1.35 . - Comparable store sales in the negative mid-single-digit range, which compares with previous guidance in the negative mid to high single-digit range.
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its third 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 and confidence in our
e-commerce and assortment improvements and store rationalization. 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 | Thirty-Nine Weeks Ended | ||||||||||||||||
2017 |
2016 |
2017 |
2016 |
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Net sales | $ | 237,834 | $ | 237,006 | $ | 701,480 | $ | 726,031 | |||||||||
Cost of goods sold, wholesale and logistics facility and store occupancy costs | 161,721 | 153,181 | 472,741 | 468,947 | |||||||||||||
Gross margin | 76,113 | 83,825 | 228,739 | 257,084 | |||||||||||||
Store operating, selling and administrative expenses | 57,993 | 55,853 | 169,886 | 165,415 | |||||||||||||
Depreciation and amortization | 6,333 | 4,799 | 18,060 | 14,036 | |||||||||||||
Operating (loss) income | 11,787 | 23,173 | 40,793 | 77,633 | |||||||||||||
Interest expense, net | 53 | 60 | 176 | 187 | |||||||||||||
(Loss) income before provision for income taxes | 11,734 | 23,113 | 40,617 | 77,446 | |||||||||||||
Provision for income taxes | 4,170 | 8,509 | 15,320 | 28,426 | |||||||||||||
Net (loss) income | $ | 7,564 | $ | 14,604 | $ | 25,297 | $ | 49,020 | |||||||||
Net (loss) income per common share: | |||||||||||||||||
Basic earnings per share | $ | 0.37 | $ | 0.66 | $ | 1.22 | $ | 2.19 | |||||||||
Diluted earnings per share | $ | 0.37 | $ | 0.66 | $ | 1.21 | $ | 2.18 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 20,318 | 21,989 | 20,805 | 22,350 | |||||||||||||
Diluted | 20,385 | 22,186 | 20,905 | 22,525 |
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Unaudited Condensed Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
2017 |
2017 |
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Assets | |||||||||
Cash and cash equivalents | $ | 58,325 | $ | 38,958 | |||||
Inventories, net | 265,422 | 280,701 | |||||||
Other current assets | 17,051 | 18,605 | |||||||
Total current assets | 340,798 | 338,264 | |||||||
Property and equipment, net | 111,714 | 111,634 | |||||||
Other assets | 5,820 | 8,956 | |||||||
Total assets | $ | 458,332 | $ | 458,854 | |||||
Liabilities and Stockholders' Investment | |||||||||
Accounts payable | $ | 91,223 | $ | 77,046 | |||||
Short-term capital leases | 620 | 595 | |||||||
Accrued expenses | 20,982 | 18,431 | |||||||
Total current liabilities | 112,825 | 96,072 | |||||||
Non-current liabilities | 27,132 | 28,742 | |||||||
Stockholders' investment | 318,375 | 334,040 | |||||||
Total liabilities and stockholders' investment | $ | 458,332 | $ | 458,854 |
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Supplemental Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
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Sales Information |
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Net sales increase (decrease) | 0.4 | % | 3.8 | % | -3.4 | % | 4.1 | % | |||||||||||||
Comparable store sales (decrease) increase | -1.3 | % | 0.7 | % | -5.7 | % | 1.0 | % | |||||||||||||
Store Count Information |
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Beginning of period | 1,080 | 1,059 | 1,078 | 1,044 | |||||||||||||||||
New stores opened | 13 | 13 | 32 | 44 | |||||||||||||||||
Stores closed | (11 | ) | (5 | ) | (28 | ) | (21 | ) | |||||||||||||
End of period | 1,082 | 1,067 | 1,082 | 1,067 | |||||||||||||||||
Stores expanded | 1 | 2 | 9 | 4 | |||||||||||||||||
Estimated square footage at end of period (in thousands) | 6,158 | 6,090 | |||||||||||||||||||
Balance Sheet Information |
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Average inventory per store | $ | 245,307 | $ | 274,097 | |||||||||||||||||
Share Repurchase Program |
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Shares | 1,200,470 | 53,519 | 2,231,213 | 911,356 | |||||||||||||||||
Cost (in thousands) | $ | 15,929 | $ | 1,941 | $ | 45,180 | $ | 31,634 | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171117005088/en/
Senior Vice
President & Chief Financial Officer
Source: