Hibbett Reports Fourth Quarter and Fiscal 2015 Results

• Comparable Store Sales Increase 5.4% in Fourth Quarter
• Fourth Quarter EPS Increases 23%
• Issues Fiscal 2016 Outlook

BIRMINGHAM, Ala.--Mar. 13, 2015-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the fourth quarter and fiscal year ended January 31, 2015.
 
Fourth Quarter Results
 
Net sales for the 13-week period ended January 31, 2015, increased 9.9% to $239.3 million compared with $217.8 million for the 13-week period ended February 1, 2014. Comparable store sales increased 5.4%.

Gross profit was 35.5% of net sales for the 13-week period ended January 31, 2015, compared with 35.8% for the 13-week period ended February 1, 2014.

Store operating, selling and administrative expenses were 20.4% of net sales for the 13-week period ended January 31, 2015, compared with 21.7% of net sales for the 13-week period ended February 1, 2014.

Net income for the 13-week period ended January 31, 2015, increased 18.1% to $19.9 million compared with $16.9 million for the 13-week period ended February 1, 2014. Earnings per diluted share increased 23.4% to $0.79 for the 13-week period ended January 31, 2015, compared with $0.64 for the 13-week period ended February 1, 2014.

Jeff Rosenthal, President and Chief Executive Officer, stated, “We are very pleased with our performance in the fourth quarter. We experienced strong comps during the holiday period on top of solid comps last year, and our product assortment resonated well with customers. In January, comps were especially strong due to better weather and earlier tax refunds. As we started Fiscal 2016, we experienced softer sales in February due to weather-related store closures across many of our markets. We believe this trend will normalize over the next few weeks, and feel confident in our assortment and inventory position.

“We are excited to announce that we achieved our store growth goal for the year, opening 80 new stores along with 9 expansions. We also continue to make progress on our major initiatives, and feel confident that these efforts will result in continued strong performance.”

Fiscal 2015 Results
 
Net sales for the 52-week period ended January 31, 2015, increased 7.2% to $913.5 million compared with $852.0 million for the 52-week period ended February 1, 2014. Comparable store sales increased 2.9%.

Gross profit was 35.8% of net sales for the 52-week period ended January 31, 2015, compared with 36.3% for the 52-week period ended February 1, 2014.

Store operating, selling and administrative expenses were 21.1% of net sales for the 52-week period ended January 31, 2015, compared with 21.3% of net sales for the 52-week period ended February 1, 2014.

Net income for the 52-week period ended January 31, 2015, increased 3.8% to $73.6 million compared with $70.9 million for the 52-week period ended February 1, 2014. Earnings per diluted share increased 6.3% to $2.87 for the 52-week period ended January 31, 2015, compared with $2.70 for the 52-week period ended February 1, 2014.

For the year, Hibbett opened 80 new stores, expanded 9 high performing stores and closed 19 underperforming stores, bringing the store base to 988 in 31 states as of January 31, 2015.

Liquidity and Stock Repurchases
 
Hibbett ended the fourth quarter of Fiscal 2015 with $88.4 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt outstanding and full availability under its $80.0 million unsecured credit facilities.

During the fourth quarter, the Company repurchased 133,711 shares of common stock for a total expenditure of $6.4 million. Approximately $173.3 million of the total authorization for future stock repurchases remained as of January 31, 2015.

Fiscal 2016 Outlook
 
The Company provided the following guidance for Fiscal 2016:

• Earnings per diluted share in the range of $2.95 to $3.09.
• Increase in comparable store sales in the low-to-mid single digit range.
• Approximately 80 to 85 new stores, 10 to 15 expansions and 15 to 20 closures.
• Slightly positive product gross margin rate compared to Fiscal 2015.
• An estimated reduction of $0.05 per diluted share due to the implementation of a point-of-sale upgrade across all stores. This upgrade will provide foundational elements needed to execute future phases of our growth strategy.
• An estimated reduction of $0.04 per diluted share due to increased health care and IT costs.
• An estimated reduction of $0.03 per diluted share due to an increase in depreciation resulting from the new wholesale and logistics facility, IT investments and an increase in new store openings.

Investor Conference Call and Simulcast
 
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 13, 2015, to discuss fourth quarter and Fiscal 2015 results. The number to call for the live interactive teleconference is (212) 231-2902. A replay of the conference call will be available until March 20, 2015, by dialing (402) 977-9140 and entering the passcode, 21762965.

The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter and Fiscal 2015 conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations on March 13, 2015, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and be available for replay for one year.
Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. The Company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centers and enclosed malls.

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 store opening plans, sales trends, product selection, earnings per diluted share, comparable store sales, product gross margin rates, store operating, selling and administrative expenses, trends in depreciation expense and impact of a point-of-sale upgrade. 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 Securities and Exchange Commission, including the “Risk Factors,” “Business” and “MD&A” sections in our Annual Report on Form 10-K filed on March 31, 2014 and in our Quarterly Reports on Form 10-Q filed on June 9, 2014, September 8, 2014 and December 8, 2014. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could be materially and adversely different from those we discuss or imply. We are not obligated to release publicly any revisions to any forward looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
				Thirteen Weeks Ended								Fifty-Two Weeks Ended
				January 31, 2015				February 1, 2014				January 31, 2015				February 1, 2014
Net sales				$	239,338			$	217,767			$	913,486			$	851,965
Cost of goods sold, wholesale and logistics facility and store occupancy costs					154,308				139,794				586,702				542,700
Gross profit					85,030				77,973				326,784				309,265
Store operating, selling and administrative expenses					48,870				47,277				192,648				181,527
Depreciation and amortization					4,213				3,654				15,990				13,847
Operating income					31,947				27,042				118,146				113,891
Interest expense, net					76				46				293				188
Income before provision for income taxes					31,871				26,996				117,853				113,703
Provision for income taxes					11,946				10,126				44,269				42,826
Net income				$	19,925			$	16,870			$	73,584			$	70,877
Net income per common share:
Basic earnings per share				$	0.80			$	0.65			$	2.90			$	2.74
Diluted earnings per share				$	0.79			$	0.64			$	2.87			$	2.70
Weighted average shares outstanding:
Basic					24,965				25,812				25,369				25,870
Diluted					25,205				26,210				25,620				26,266

HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
				January 31, 2015				February 1, 2014
Assets
Cash and cash equivalents				$	88,397			$	66,227
Inventories, net					240,408				226,545
Other current assets					26,693				30,877
Total current assets					355,498				323,649
Property and equipment, net					92,981				86,014
Other assets					3,918				6,682
Total assets				$	452,397			$	416,345
Liabilities and Stockholders' Investment
Accounts payable				$	84,439			$	74,532
Short-term capital leases					436				322
Accrued expenses					17,250				16,560
Total current liabilities					102,125				91,414
Non-current liabilities					25,491				20,908
Stockholders' investment					324,781				304,023
Total liabilities and stockholders' investment				$	452,397			$	416,345

HIBBETT SPORTS, INC. AND SUBSIDIARIES
Supplemental Information
(Unaudited)
				Thirteen Weeks Ended										Fifty-Two Weeks Ended
				January 31, 2015					February 1, 2014					January 31, 2015					February 1, 2014
Sales Information
Net sales increase					9.9	%				0.2	%				7.2	%				4.1	%
Comparable store sales increase					5.4	%				1.7	%				2.9	%				1.8	%
Store Count Information
Beginning of period					969					904					927					873
New stores opened					22					30					80					72
Stores closed					(3	)				(7	)				(19	)				(18	)
End of period					988					927					988					927
Stores expanded					2					2					9					14
Estimated square footage at end of period (in thousands)					5,649					5,331
Balance Sheet Information
Average inventory per store				$	243,328				$	244,385
Share Repurchase Program
Shares					133,711					21,500					1,206,006					365,697
Cost (in thousands)				$	6,394				$	1,324				$	60,971				$	20,095

Source: Hibbett Sports, Inc. through BUSINESS WIRE by press release ©



Hibbett Sports, Inc./ Scott J. Bowman, 205-942-4292 / Senior Vice President & Chief Financial Officer



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