Hibbett Provides Business Update and Announces Fourth Quarter Conference Call
February 26, 2018
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- Comparable Store Sales Increase 1.6% in Fourth Quarter
- Estimated Impacts Provided for Tax Reform, Sale of Team Division, and 53rd Week on Fiscal 2019 Revenue Comparisons
Preliminary Unaudited Fourth Quarter Results
The fourth quarter and Fiscal 2018 ended on
Based on preliminary fourth quarter results, earnings per diluted share
for the 14-week period ended
Preliminary Fiscal 2019 Outlook
The Company is providing preliminary guidance for Fiscal 2019 regarding tax reform legislation, the sale the Company’s Team Division, and the effect of the 53rd week on revenue comparisons.
Tax Reform
As a result of recent tax reform changes, the Company’s federal tax rate
was reduced from 35% to 21% starting in
Sale of Team Division
Due to the sale of the Company’s Team Division in Fiscal 2018, the following effects will be realized in Fiscal 2019:
-
Revenue will be negatively impacted by
$7.6 million . The effect on earnings per diluted share is not expected to be material. -
The limited impact on earnings is a result of a decrease in annual
earnings of approximately
$0.02 to$0.03 per diluted share due to the loss in revenue, offset by an expected gain when final deal contingencies are satisfied in the first quarter of Fiscal 2019.
Effect of 53rd Week on Revenue Comparisons
Due to the 53rd week in Fiscal 2018, each quarter in Fiscal 2019 starts one week later than the same quarter in Fiscal 2018. Due to this shift, revenue comparisons versus the prior year will be affected, most notably in the second and third quarters due to the timing of back-to-school sales. Second quarter will gain a week of back-to-school sales, and third quarter will lose a week of back-to-school sales. The chart below presents comparable store sales and net sales for Fiscal 2018 sales as originally reported, and adjusted to reflect the Fiscal 2019 calendar:
FISCAL 2018 | ||||||||||||||||||||
First | Second | Third | Fourth | Full | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
Comparable store sales increase (originally reported) | (4.9 | %) | (11.7 | %) | (1.3 | %) | 1.6 | % | (3.8 | %) | ||||||||||
Comparable store sales increase (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 | Second | Third | Fourth | Full | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | ||||||||||||||||
|
$ | 275.7 | $ | 188.0 | $ | 237.8 | $ | 266.7 | $ | 968.2 | ||||||||||
|
$ | 275.2 | $ | 206.0 | $ | 220.6 | $ | 265.8 | $ | 967.6 | ||||||||||
Impact of week shift |
( |
) | $ | 18.0 |
( |
) |
( |
) |
( |
) | ||||||||||
For Fiscal 2019, references to comparable store sales will reflect comparisons against the same period in the prior year as adjusted above, while total net sales will be compared against originally reported sales in the prior year.
Investor Conference Call and Simulcast
The Company will also provide an online Web simulcast and rebroadcast of
its fourth quarter and 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
preliminary financial results, the effect on comparable sales
comparisons in Fiscal 2019 resulting from the 53rd
week in Fiscal 2018, the effect of recent tax reform changes and the
residual impact in Fiscal 2019 of the sale of the Hibbett Team Division.
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20180226005256/en/
Senior Vice
President & Chief Financial Officer
Source: