☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-8159608 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 Par Value Per Share | HIBB | Nasdaq Global Select Market |
Yes | ☒ | No | ☐ |
Yes | ☒ | No | ☐ |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Yes | ☐ | No | ☒ |
Page | ||||||||
ASSETS | May 4, 2024 | February 3, 2024 | April 29, 2023 | ||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 28,681 | $ | 21,230 | $ | 26,926 | |||||||||||
Receivables, net | 16,970 | 16,743 | 12,582 | ||||||||||||||
Inventories, net | 371,259 | 344,294 | 437,957 | ||||||||||||||
Other current assets | 19,213 | 24,448 | 13,662 | ||||||||||||||
Total current assets | 436,123 | 406,715 | 491,127 | ||||||||||||||
Property and equipment, net | 182,391 | 183,949 | 175,285 | ||||||||||||||
Operating right-of-use assets | 277,122 | 280,755 | 262,999 | ||||||||||||||
Finance right-of-use assets, net | 1,696 | 1,837 | 1,913 | ||||||||||||||
Tradename intangible asset | 23,500 | 23,500 | 23,500 | ||||||||||||||
Deferred income taxes, net | 2,874 | 3,024 | 2,744 | ||||||||||||||
Other assets, net | 11,625 | 9,442 | 7,777 | ||||||||||||||
Total assets | $ | 935,331 | $ | 909,222 | $ | 965,345 | |||||||||||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 128,069 | $ | 96,431 | $ | 131,437 | |||||||||||
Operating lease obligations | 71,666 | 71,448 | 73,142 | ||||||||||||||
Credit facility | 7,545 | 45,296 | 103,577 | ||||||||||||||
Finance lease obligations | 534 | 538 | 929 | ||||||||||||||
Accrued payroll expenses | 14,656 | 8,488 | 7,707 | ||||||||||||||
Other accrued expenses | 14,452 | 14,013 | 14,183 | ||||||||||||||
Total current liabilities | 236,922 | 236,214 | 330,975 | ||||||||||||||
Operating lease obligations | 242,231 | 245,649 | 228,645 | ||||||||||||||
Finance lease obligations | 1,287 | 1,423 | 1,116 | ||||||||||||||
Other liabilities | 7,638 | 6,911 | 5,594 | ||||||||||||||
Total liabilities | 488,078 | 490,197 | 566,330 | ||||||||||||||
Stockholders' investment: | |||||||||||||||||
Preferred stock, $0.01 par value, no shares issued | — | — | — | ||||||||||||||
Common stock - 40,384; 40,170; and 40,120 shares issued, respectively | 404 | 402 | 401 | ||||||||||||||
Paid-in capital | 224,616 | 221,668 | 216,309 | ||||||||||||||
Retained earnings | 1,257,805 | 1,228,257 | 1,170,180 | ||||||||||||||
Treasury stock, at cost - 28,436; 28,376; and 27,373 shares repurchased, respectively | (1,035,572) | (1,031,302) | (987,875) | ||||||||||||||
Total stockholders' investment | 447,253 | 419,025 | 399,015 | ||||||||||||||
Total liabilities and stockholders' investment | $ | 935,331 | $ | 909,222 | $ | 965,345 |
13-Weeks Ended | |||||||||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||||||||
% to Sales | % to Sales | ||||||||||||||||
Net sales | $ | 447,163 | $ | 455,497 | |||||||||||||
Cost of goods sold | 286,957 | 64.2 | % | 301,877 | 66.3 | % | |||||||||||
Gross margin | 160,206 | 35.8 | % | 153,620 | 33.7 | % | |||||||||||
Store operating, selling and administrative expenses | 105,927 | 23.7 | % | 96,014 | 21.1 | % | |||||||||||
Depreciation and amortization | 12,973 | 2.9 | % | 11,693 | 2.6 | % | |||||||||||
Operating income | 41,306 | 9.2 | % | 45,913 | 10.1 | % | |||||||||||
Interest expense, net | 231 | 0.1 | % | 1,327 | 0.3 | % | |||||||||||
Income before provision for income taxes | 41,075 | 9.2 | % | 44,586 | 9.8 | % | |||||||||||
Provision for income taxes | 8,575 | 1.9 | % | 8,711 | 1.9 | % | |||||||||||
Net income | $ | 32,500 | 7.3 | % | $ | 35,875 | 7.9 | % | |||||||||
Basic earnings per share | $ | 2.73 | $ | 2.80 | |||||||||||||
Diluted earnings per share | $ | 2.67 | $ | 2.74 | |||||||||||||
Weighted-average shares: | |||||||||||||||||
Basic | 11,909 | 12,791 | |||||||||||||||
Diluted | 12,153 | 13,111 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net income | $ | 32,500 | $ | 35,875 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 12,973 | 11,693 | |||||||||
Stock-based compensation | 2,481 | 2,005 | |||||||||
Impairment charges | 825 | 199 | |||||||||
Other non-cash adjustments | 1,067 | 1,449 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Inventories, net | (26,965) | (17,119) | |||||||||
Receivables, net | 7,158 | 7,277 | |||||||||
Accounts payable | 28,374 | (62,361) | |||||||||
Other assets and liabilities | 2,225 | (5,815) | |||||||||
Net cash provided by (used in) operating activities | 60,638 | (26,797) | |||||||||
Cash Flows From Investing Activities: | |||||||||||
Capital expenditures | (8,456) | (14,219) | |||||||||
Other, net | (90) | (12) | |||||||||
Net cash used in investing activities | (8,546) | (14,231) | |||||||||
Cash Flows From Financing Activities: | |||||||||||
Proceeds under credit facilities | 104,999 | 214,075 | |||||||||
Repayments under credit facilities | (142,750) | (146,762) | |||||||||
Stock repurchases | — | (10,199) | |||||||||
Cash dividends paid to stockholders | (2,949) | (3,173) | |||||||||
Payments of finance lease obligations | (139) | (281) | |||||||||
Proceeds from options exercised and purchase of shares under employee stock purchase plan | 469 | 1,124 | |||||||||
Other, net | (4,271) | (2,845) | |||||||||
Net cash (used in) provided by financing activities | (44,641) | 51,939 | |||||||||
Net increase in cash and cash equivalents | 7,451 | 10,911 | |||||||||
Cash and cash equivalents, beginning of period | 21,230 | 16,015 | |||||||||
Cash and cash equivalents, end of period | $ | 28,681 | $ | 26,926 |
13-Weeks Ended May 4, 2024 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Retained Earnings | Shares | Amount | Total Stockholders' Investment | |||||||||||||||||||||||||||||||||||
Balance - February 3, 2024 | 40,170 | $ | 402 | $ | 221,668 | $ | 1,228,257 | 28,376 | $ | (1,031,302) | $ | 419,025 | |||||||||||||||||||||||||||||
Net income | — | — | — | 32,500 | — | — | 32,500 | ||||||||||||||||||||||||||||||||||
Issuance of shares through the Company's equity plans | 213 | 2 | 467 | — | — | — | 469 | ||||||||||||||||||||||||||||||||||
Purchase of shares under the stock repurchase program | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Settlement of net share equity awards | — | — | — | — | 59 | (4,270) | (4,270) | ||||||||||||||||||||||||||||||||||
Excise tax on stock repurchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.25 per common share | — | — | — | (2,953) | — | — | (2,953) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,481 | — | — | — | 2,481 | ||||||||||||||||||||||||||||||||||
Balance - May 4, 2024 | 40,384 | $ | 404 | $ | 224,616 | $ | 1,257,805 | 28,436 | $ | (1,035,572) | $ | 447,253 |
13-Weeks Ended April 29, 2023 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Retained Earnings | Shares | Amount | Total Stockholders' Investment | |||||||||||||||||||||||||||||||||||
Balance - January 28, 2023 | 39,917 | $ | 399 | $ | 213,182 | $ | 1,137,481 | 27,167 | $ | (974,831) | $ | 376,231 | |||||||||||||||||||||||||||||
Net income | — | — | — | 35,875 | — | — | 35,875 | ||||||||||||||||||||||||||||||||||
Issuance of shares through the Company's equity plans | 203 | 2 | 1,122 | — | — | — | 1,124 | ||||||||||||||||||||||||||||||||||
Purchase of shares under the stock repurchase program | — | — | — | — | 160 | (10,199) | (10,199) | ||||||||||||||||||||||||||||||||||
Settlement of net share equity awards | — | — | — | — | 47 | (2,833) | (2,833) | ||||||||||||||||||||||||||||||||||
Excise tax on stock repurchases | — | — | — | — | — | (12) | (12) | ||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.25 per common share | — | — | — | (3,176) | — | — | (3,176) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,005 | — | — | — | 2,005 | ||||||||||||||||||||||||||||||||||
Balance - April 29, 2023 | 40,120 | $ | 401 | $ | 216,309 | $ | 1,170,180 | 27,373 | $ | (987,875) | $ | 399,015 |
May 4, 2024 | February 3, 2024 | April 29, 2023 | |||||||||||||||
Land | $ | 7,289 | $ | 7,289 | $ | 7,277 | |||||||||||
Buildings | 22,792 | 22,760 | 22,552 | ||||||||||||||
Equipment | 142,530 | 141,989 | 140,265 | ||||||||||||||
Furniture and fixtures | 71,602 | 72,460 | 68,836 | ||||||||||||||
Leasehold improvements | 210,660 | 205,568 | 179,980 | ||||||||||||||
Construction in progress | 5,881 | 6,089 | 4,151 | ||||||||||||||
Total property and equipment | 460,754 | 456,155 | 423,061 | ||||||||||||||
Less: accumulated depreciation and amortization | 278,363 | 272,206 | 247,776 | ||||||||||||||
Total property and equipment, net | $ | 182,391 | $ | 183,949 | $ | 175,285 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Footwear | $ | 323,850 | $ | 320,534 | |||||||
Apparel | 69,522 | 88,833 | |||||||||
Equipment | 53,791 | 46,130 | |||||||||
Total | $ | 447,163 | $ | 455,497 |
13-Weeks Ended | ||||||||||||||
May 4, 2024 | April 29, 2023 | |||||||||||||
Operating lease cost | $ | 21,278 | $ | 20,038 | ||||||||||
Finance lease cost: | ||||||||||||||
Amortization of assets | 141 | 255 | ||||||||||||
Interest on lease liabilities | 21 | 27 | ||||||||||||
Variable lease cost | 5,017 | 5,068 | ||||||||||||
$ | 26,457 | $ | 25,388 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
ROU assets obtained in exchange for lease obligations, net: | |||||||||||
Operating leases | $ | 16,835 | $ | 18,433 | |||||||
Finance leases | $ | — | $ | — |
May 4, 2024 | February 3, 2024 | April 29, 2023 | |||||||||||||||
13-Weeks Ended | 53-Weeks Ended | 13-Weeks Ended | |||||||||||||||
Number of days borrowings incurred | 56 | 359 | 91 | ||||||||||||||
Average borrowings | $13.3 | $85.8 | $96.7 | ||||||||||||||
Maximum borrowings | $52.0 | $134.1 | $124.9 | ||||||||||||||
Average interest rate | 6.61% | 6.35% | 5.81% |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Stock-based compensation expense by type: | |||||||||||
Stock options | $ | — | $ | 220 | |||||||
Restricted stock units | 2,320 | 1,653 | |||||||||
Employee stock purchases | 134 | 106 | |||||||||
Director deferred compensation | 27 | 26 | |||||||||
Total stock-based compensation expense | 2,481 | 2,005 | |||||||||
Income tax benefit recognized | 572 | 454 | |||||||||
Stock-based compensation expense, net of income tax | $ | 1,909 | $ | 1,551 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Stock options | — | 8,188 | |||||||||
Restricted stock unit awards | 59,841 | 78,515 | |||||||||
Performance-based restricted stock unit awards | 33,211 | 39,567 | |||||||||
Deferred stock units | 359 | 450 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Total stock options granted | — | 8,188 | |||||||||
Exercise price | $ | — | $ | 58.38 | |||||||
Fair value of stock options | $ | — | $ | 26.87 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Shares purchased | 7,170 | 7,026 | |||||||||
Average price per share | $ | 61.22 | $ | 50.13 | |||||||
Weighted-average fair value at grant date | $ | 18.90 | $ | 17.60 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Weighted-average shares used in basic computations | 11,909 | 12,791 | |||||||||
Dilutive equity awards | 244 | 320 | |||||||||
Weighted-average shares used in diluted computations | 12,153 | 13,111 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Common stock repurchased under the Repurchase Program | — | 159,592 | |||||||||
Aggregate cost of repurchases under the Repurchase Program | $ | — | $ | 10,199 | |||||||
Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements | 59,490 | 47,177 | |||||||||
Tax withholding requirement from holders of restricted stock unit awards | $ | 4,270 | $ | 2,833 | |||||||
Excise tax on stock repurchases | $ | — | $ | 12 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Cash dividends paid (in millions) | $2.9 | $3.2 | |||||||||
Total paid per share during period | $0.25 | $0.25 |
Location | ||||||||||||||
Brand | Average Square Footage | Strip Center(1) | Mall | Total | ||||||||||
Hibbett | 5,800 | 789 | 171 | 960 | ||||||||||
City Gear | 5,200 | 156 | 37 | 193 | ||||||||||
Sports Additions(2) | 2,900 | 3 | 13 | 16 | ||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
13-weeks ended | 1,118 | 1,088 | |||||||||
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Net sales (in millions) | $ | 447.2 | $ | 455.5 | |||||||
E-commerce, percentage to net sales | 13.4 | % | 13.7 | % | |||||||
Operating income, percentage to sales | 9.2 | % | 10.1 | % | |||||||
Comparable store sales | (5.8) | % | 4.1 | % | |||||||
Brick and mortar comparable store sales | (5.8) | % | 4.7 | % | |||||||
E-commerce comparable sales | (5.8) | % | 0.6 | % | |||||||
Net income (in millions) | $ | 32.5 | $ | 35.9 | |||||||
Net income, percentage to net sales | 7.3 | % | 7.9 | % | |||||||
Diluted earnings per share | $ | 2.67 | $ | 2.74 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Statements of Operations | |||||||||||
Net sales (decrease) increase | (1.8) | % | 7.4 | % | |||||||
Comparable store sales (decrease) increase | (5.8) | % | 4.1 | % | |||||||
Balance Sheets | |||||||||||
Ending cash and cash equivalents (in thousands) | $ | 28,681 | $ | 26,926 | |||||||
Average inventory per store | $ | 317,587 | $ | 383,164 | |||||||
Store Information | |||||||||||
Beginning of period | 1,169 | 1,133 | |||||||||
New stores opened | 6 | 12 | |||||||||
Stores closed | (6) | (2) | |||||||||
End of period | 1,169 | 1,143 | |||||||||
Estimated square footage at end of period (in thousands) | 6,637 | 6,485 | |||||||||
Share Repurchase Information(1) | |||||||||||
Shares purchased under our Repurchase Program | 0 | 159,592 | |||||||||
Cost (in thousands) | $ | 0 | $ | 10,199 | |||||||
Settlement of net share equity awards | 59,490 | 47,177 | |||||||||
Cost (in thousands) | $ | 4,270 | $ | 2,833 | |||||||
Dividend Information | |||||||||||
Number of declarations | 1 | 1 | |||||||||
Cash paid (in thousands) | $ | 2,949 | $ | 3,173 | |||||||
Total paid per share | $ | 0.25 | $ | 0.25 |
13-Weeks Ended | |||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||
Net cash provided by (used in) operating activities | $ | 60,638 | $ | (26,797) | |||||||
Net cash used in investing activities | (8,546) | (14,231) | |||||||||
Net cash (used in) provided by financing activities | (44,641) | 51,939 | |||||||||
Net increase in cash and cash equivalents | $ | 7,451 | $ | 10,911 |
Period | Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Programs (in thousands)(1) | ||||||||||||||||||||||
February 4, 2024 - March 2, 2024 | 0 | $ | 0.00 | 0 | $ | 276,851 | ||||||||||||||||||||
March 3, 2024 - April 6, 2024 | 25,911 | $ | 72.21 | 0 | $ | 276,851 | ||||||||||||||||||||
April 7, 2024 - May 4, 2024 | 33,579 | $ | 71.43 | 0 | $ | 276,851 | ||||||||||||||||||||
Total | 59,490 | $ | 71.77 | 0 | $ | 276,851 |
Exhibit No. | Description | |||||||
Agreement and Plan of Merger, dated as of April 23, 2024, by and among Hibbett, Inc., Genesis Holdings, Inc., Steps Merger Sub, Inc. and, solely for purposes of certain provisions specified therein, JD Sports Fashion plc; incorporated herein by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 25, 2024. | ||||||||
Certificate of Incorporation and By-Laws | ||||||||
Certificate of Incorporation of the Registrant; incorporated herein by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 31, 2012. | ||||||||
Certificate of Amendment to the Certificate of Incorporation of the Registrant; incorporated herein by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 24, 2021. | ||||||||
Certificate of Amendment to the Certificate of Incorporation of the Registrant; incorporated herein by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K with the Securities and Exchange Commission on May 27, 2022. | ||||||||
Bylaws of the Registrant, as amended; incorporated herein by reference to Exhibit 3.2 of the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 24, 2021. | ||||||||
Certifications | ||||||||
* | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer | |||||||
* | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer | |||||||
* | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
Interactive Data Files | ||||||||
101.INS | * | Inline XBRL Instance Document | ||||||
101.SCH | * | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL | * | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF | * | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB | * | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||
101.PRE | * | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | * | The cover page for the Registrant's Quarterly Report on Form 10-Q for the quarter ended May 4, 2024, has been formatted in Inline XBRL. | ||||||
* | Filed Within |
HIBBETT, INC. | |||||||||||
Date: | June 11, 2024 | By: | /s/ Robert J. Volke | ||||||||
Robert J. Volke | |||||||||||
Senior Vice President and Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |
Date: June 11, 2024 | /s/ Michael E. Longo | ||||
Michael E. Longo | |||||
Chief Executive Officer and President | |||||
(Principal Executive Officer) |
Date: June 11, 2024 | /s/ Robert J. Volke | ||||
Robert J. Volke | |||||
Senior Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: June 11, 2024 | /s/ Michael E. Longo | ||||
Michael E. Longo | |||||
Chief Executive Officer and President | |||||
(Principal Executive Officer) |
Date: June 11, 2024 | /s/ Robert J. Volke | ||||
Robert J. Volke | |||||
Senior Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |