Hibbett Reports Fourth Quarter and Fiscal 2018 Results
March 16, 2018
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Fourth Quarter EPS of
$0.51 , in Line with Recent Business Update - Comparable Store Sales Increased 1.6% in Fourth Quarter
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One-time Gain of
$0.07 Per Diluted Share in Fourth Quarter due to Sale of Team Division - Issues Fiscal 2019 Outlook
Fourth Quarter Results
The fourth quarter and Fiscal 2018 ended on
Gross margin was 31.5% of net sales for the 14-week period ended
Store operating, selling and administrative expenses were 23.2% of net
sales for the 14-week period ended
Net income for the 14-week period ended
For the quarter, Hibbett opened 12 new stores, expanded two
high-performing stores and closed 14 underperforming stores, bringing
the store base to 1,079 in 35 states as of
Fiscal 2018 Results
Net sales for the 53-week period ended
Gross margin was 32.3% of net sales for the 53-week period ended
Store operating, selling and administrative expenses were 23.9% of net
sales for the 53-week period ended
Net income for the 53-week period ended
For the year, Hibbett opened 44 new stores, expanded 11 high performing stores and closed 43 underperforming stores.
Liquidity and Stock Repurchases
Hibbett ended the fourth quarter of Fiscal 2018 with
During the fourth quarter, the Company repurchased 611,596 shares of
common stock for a total expenditure of
Fiscal 2019 Outlook
The Company provided the following guidance for Fiscal 2019, which will have 52 weeks versus 53 weeks in Fiscal 2018:
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Earnings per diluted share in the range of
$1.65 to$1.95 - Comparable store sales in the range of -1.0% to 2.0%
- Approximately 30 to 35 new store openings with approximately 55 to 60 store closures
- Improvement in gross margin rate in the range of 70 to 100 basis points
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SG&A expense increase of 6.0% to 8.0%, including spending of
$3.0 million to$4.0 million due to benefits of tax reform, additional marketing and operational expenses related to the omni-channel initiative, and increased compensation and benefits costs -
Capital expenditures of approximately
$20.0 million to$25.0 million -
Share buyback of approximately
$40.0 million to$50.0 million
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
earnings per diluted share, comparable store sales, gross margin,
capital expenditures, store openings and closings, share repurchases,
the effect of recent tax reform changes and the capabilities and
financial 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
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Unaudited Condensed Consolidated Statements of Operations | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
2018 |
2017 |
2018 |
2017 |
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(14 Weeks) | (13 Weeks) | (53 Weeks) | (52 Weeks) | ||||||||||
Net sales | $ | 266,738 | $ | 246,929 | $ | 968,219 | $ | 972,960 | |||||
Cost of goods sold, wholesale, logistics and store occupancy costs | 182,761 | 165,417 | 655,502 | 634,364 | |||||||||
Gross margin | 83,977 | 81,512 | 312,717 | 338,596 | |||||||||
Store operating, selling and administrative expenses | 61,945 | 57,369 | 231,832 | 222,785 | |||||||||
Depreciation and amortization | 6,148 | 5,011 | 24,207 | 19,047 | |||||||||
Operating income | 15,884 | 19,132 | 56,678 | 96,764 | |||||||||
Interest expense, net | 54 | 82 | 231 | 268 | |||||||||
Income before provision for income taxes | 15,830 | 19,050 | 56,447 | 96,496 | |||||||||
Provision for income taxes | 6,097 | 6,995 | 21,417 | 35,421 | |||||||||
Net income | $ | 9,733 | $ | 12,055 | $ | 35,030 | $ | 61,075 | |||||
Basic earnings per share | $ | 0.51 | $ | 0.55 | $ | 1.72 | $ | 2.75 | |||||
Diluted earnings per share | $ | 0.51 | $ | 0.54 | $ | 1.71 | $ | 2.72 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 19,069 | 21,910 | 20,347 | 22,240 | |||||||||
Diluted | 19,186 | 22,132 | 20,450 | 22,427 |
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Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
2018 |
2017 |
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Assets | ||||||
Cash and cash equivalents | $ | 73,544 | $ | 38,958 | ||
Inventories, net | 253,201 | 280,701 | ||||
Other current assets | 20,029 | 18,605 | ||||
Total current assets | 346,774 | 338,264 | ||||
Property and equipment, net | 109,698 | 111,634 | ||||
Other assets, net | 5,374 | 8,956 | ||||
Total assets | $ | 461,846 | $ | 458,854 | ||
Liabilities and Stockholders' Investment | ||||||
Accounts payable | $ | 93,435 | $ | 77,046 | ||
Short-term capital leases | 663 | 595 | ||||
Accrued expenses | 21,469 | 18,431 | ||||
Total current liabilities | 115,567 | 96,072 | ||||
Non-current liabilities | 26,683 | 28,742 | ||||
Stockholders' investment | 319,596 | 334,040 | ||||
Total liabilities and stockholders' investment | $ | 461,846 | $ | 458,854 |
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Supplemental Information | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
2018 |
2017 |
2018 |
2017 |
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(14 Weeks) | (13 Weeks) | (53 Weeks) | (52 Weeks) | |||||||||||||||||
Sales Information |
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Total sales increase (decrease) | 8.0 | % | 0.5 | % | -0.5 | % | 3.2 | % | ||||||||||||
Comparable store sales increase (decrease) (13 and 52 weeks) | 1.6 | % | -2.2 | % | -3.8 | % | 0.2 | % | ||||||||||||
Store Count Information |
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Beginning of period | 1,081 | 1,067 | 1,078 | 1,044 | ||||||||||||||||
New stores opened | 12 | 21 | 44 | 65 | ||||||||||||||||
Stores closed | (14 | ) | (10 | ) | (43 | ) | (31 | ) | ||||||||||||
End of period | 1,079 | 1,078 | 1,079 | 1,078 | ||||||||||||||||
Stores expanded | 2 | 4 | 11 | 8 | ||||||||||||||||
Estimated square footage at end of period (in thousands) | 6,140 | 6,141 | ||||||||||||||||||
Balance Sheet Information |
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Average inventory per store | $ | 234,663 | $ | 260,390 | ||||||||||||||||
Share Repurchase Program |
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Shares | 611,596 | 324,200 | 2,842,809 | 1,235,556 | ||||||||||||||||
Cost (in thousands) | $ | 9,326.2 | $ | 11,423.8 | $ | 54,506.0 | $ | 43,057.8 |
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Fiscal 2018 Comparable Store 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 |
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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 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 store 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. |
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Senior Vice
President &
Chief Financial Officer
Source: