Hibbett Strikes Out: Shares Respond to Q4 and FY Results
On Friday, Hibbett Sports, Inc. (NASDAQ: HIBB) reported fourth quarter and fiscal year 2014 results ending February 1, 2014.
In the press release, President and CEO Jeff Rosenthal commented, "We were very pleased with sales during the holiday season, although we experienced a significant slowdown in January due to significant weather-related store closures and a less favorable sales impact this year from the college football championship game. Sales trends improved significantly in February as weather patterns normalized, and we transitioned to our spring assortment. Looking ahead, we feel confident in our product offering, inventory levels and execution as we progress through this important season. We also continue to be encouraged by new store unit growth and sales, and look forward to delivering value on our key initiatives in Fiscal 2015."
Fourth Quarter Results
- Net sales hit $217.8 million, up 0.2 percent from same quarter last year but missing the estimate $221.33 million.
- Gross profit reached 35.8% of net sales.
- Comparable store sales increased 1.7 percent on a calendar basis.
- Net income came in at $16.9 million (for the 13 week period) versus last year's fourth quarter (14 week period) income of $19.4 million.
- EPS came in at $0.64 versus the estimated $0.70, missing by $0.06. EPS were down 12% from the same quarter last year.
- Hibbett ended the quarter with $66.2 million in cash and cash equivalents with no bank debt outstanding under the $80 million of availability of unsecured credit facilities.
- The company repurchased 21,500 shares of common stock for $1.3 million during the fourth quarter.
Fiscal Year Results
- Net sales were up 4.1 percent for the 52-week year at $852 million compared with $818.7 million for last year's 53-week year.
- Gross profits reached 36.3% of net sales. Store operating, selling and administrative expenses made up 21.3% of net sales.
- Net income for the 52-week year was $70.9 million compared with $72.6 million for the previous 53-week year.
- Hibbett opened 72 new stores for the year. The company expanded fourteen "high performing" stores and closed 18 underperforming spaces. The store base is now composed of 927 stores in 31 states as of February 1, 2014.
Outlook for FY2015
- Management expects EPS for the 2015 fiscal year to be within $2.79 to $2.98.
- Hibbett Sports expects to open 75 to 80 new stores, expand 10 to 15, and close 15 to 20.
- Management expects low-to-mid single digit range and a flat to slightly positive product gross margin rate.
Investors and the general public can access the company's conference call at 10:00 a.m. (EDT), which will cover fourth quarter and Fiscal 2014 results. A replay will be available until March 21, 2014 at 12:00 p.m. (EDT). To access the call in real time, call (212) 231-2921. For access to the replay, call (402) 977-9140 and enter the passcode, 21646089.
Hibbett Sports closed at $57.84 on Thursday and is currently trading at $55.97, down 3.22%.
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