Hibbett Sports Q3 Profit Tops Estimates

reported better-than-expected earnings for the third quarter on Friday. The Birmingham, Alabama-based company posted quarterly net income of $18.7 million, or $0.79 per share, versus $16.9 million, or $0.67 per share. The latest quarter results included favorable impact of $0.05 per share resulting from the legal settlement. Its net sales rose 4.6 percent to $228.3 million from $218.3 million. However, analysts were expecting earnings of $0.68 per share on revenue of $233.4 million. The average estimate among 32 Estimize users was for earnings of $0.69 per share and revenue of $234.94 million. Comparable store sales climbed 0.6 for the third quarter. Gross profit narrowed to 36.1 percent of net sales from 36.3 percent of net sales. The company ended the quarter with $45.5 million of available cash and cash equivalents. During the third quarter, Hibbett Sports repurchased 1,341,170 shares of its common stock for a total expenditure of $50.5 million. The company's board also announced a new $300 million buyback plan. Jeff Rosenthal, President and Chief Executive Officer, stated, "We were very pleased with our back-to-school sales, our margin performance and expense controls, and are encouraged by the great progress we are making with our merchandising initiatives. Sales softened late in the quarter due to significant declines in our colder weather categories, although footwear remained strong due to benefits from a strong assortment and an improved in-stock position. Looking forward, we believe that our ongoing improvements in merchandise strategies, execution and replenishment capabilities have us well-positioned for the holiday season." Hibbett Sports raised its full-year earnings to $2.87 to $2.94 per share, versus prior forecast of $2.80 to $2.90 per share. Hibbett Sports shares fell 3.01 percent to close at $28.65 yesterday.