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Hibbett Provides Business Update and Announces Fourth Quarter Conference Call

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Hibbett Sports, Inc. (NASDAQ:HIBB):

  • Comparable Store Sales Increase 1.6% in Fourth Quarter
  • Estimated Impacts Provided for Tax Reform, Sale of Team Division, and
    53rd Week on Fiscal 2019 Revenue Comparisons

Hibbett Sports, Inc. (NASDAQ:HIBB), an athletic specialty retailer,
today provided the following business updates:

Preliminary Unaudited Fourth Quarter Results

The fourth quarter and Fiscal 2018 ended on February 3, 2018, with the
fourth quarter including 14 weeks of results and Fiscal 2018 including
53 weeks of results. Net sales for the 14-week period ended February 3,
2018, increased 8.0% to $266.7 million (including $13.5 million for the
53rd week) compared with $246.9 million for the 13-week
period ended January 28, 2017. Comparable store sales increased 1.6%.
E-commerce sales represented 7.6% of total sales for the fourth quarter.

Based on preliminary fourth quarter results, earnings per diluted share
for the 14-week period ended February 3, 2018, are expected to be in the
range of $0.47 to $0.51 compared with $0.54 reported for the 13-week
period ended January 28, 2017. This range includes an estimated gain on
the sale of the Company's Team Division of $0.07 per diluted share. The
effect of tax reform is not expected to have a significant impact in the
fourth quarter.

Jeff Rosenthal, President and Chief Executive Officer, stated, "Results
exceeded expectations for the quarter, driven by strength in branded
apparel and footwear, and continued acceleration in our e-commerce
business. As expected, the holiday season was very promotional, and we
continued to take markdowns to reduce aged inventory. This resulted in
continued gross margin pressure for the quarter, but allowed us to
finish the year in a much better inventory position. Further details
about sales trends and our future outlook will be discussed when we
report fourth quarter results on March 16, 2018."

Preliminary Fiscal 2019 Outlook

The Company is providing preliminary guidance for Fiscal 2019 regarding
tax reform legislation, the sale the Company's Team Division, and the
effect of the 53rd week on revenue comparisons.

Tax Reform

As a result of recent tax reform changes, the Company's federal tax rate
was reduced from 35% to 21% starting in January 2018. Although the
legislation included other changes, this element will represent the most
significant impact for the Company going forward. For Fiscal 2019, the
Company expects to reallocate approximately $3.0 million to $4.0 million
of the tax savings into SG&A spending to benefit our team members and to
enable continued investments in our omni-channel capability. The
remainder will directly benefit net income.

Sale of Team Division

Due to the sale of the Company's Team Division in Fiscal 2018, the
following effects will be realized in Fiscal 2019:

  • Revenue will be negatively impacted by $7.6 million. The effect on
    earnings per diluted share is not expected to be material.
  • The limited impact on earnings is a result of a decrease in annual
    earnings of approximately $0.02 to $0.03 per diluted share due to the
    loss in revenue, offset by an expected gain when final deal
    contingencies are satisfied in the first quarter of Fiscal 2019.

Effect of 53rd
Week on Revenue Comparisons

Due to the 53rd week in Fiscal 2018, each quarter in Fiscal
2019 starts one week later than the same quarter in Fiscal 2018. Due to
this shift, revenue comparisons versus the prior year will be affected,
most notably in the second and third quarters due to the timing of
back-to-school sales. Second quarter will gain a week of back-to-school
sales, and third quarter will lose a week of back-to-school sales. The
chart below presents comparable store sales and net sales for Fiscal
2018 sales as originally reported, and adjusted to reflect the Fiscal
2019 calendar:

 
FISCAL 2018
First   Second   Third   Fourth   Full
Quarter   Quarter   Quarter   Quarter   Year
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 Second Third Fourth Full
Quarter   Quarter   Quarter   Quarter   Year
Net Sales (originally reported) $ 275.7 $ 188.0 $ 237.8 $ 266.7 $ 968.2
Net Sales (adjusted for week shift) $ 275.2     $ 206.0     $ 220.6     $ 265.8     $ 967.6  
Impact of week shift ($0.5 ) $ 18.0 ($17.2 ) ($0.9 ) ($0.6 )
 

For Fiscal 2019, references to comparable store sales will reflect
comparisons against the same period in the prior year as adjusted above,
while total net sales will be compared against originally reported sales
in the prior year.

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on
Friday, March 16, 2018, to discuss fourth quarter and Fiscal 2018
results. The number to call for the live interactive teleconference is
(212) 231-2906. A replay of the conference call will be available until
March 23, 2018, by dialing (402) 977-9140 and entering the passcode,
21880865.

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 March 16, 2018, beginning at 10:00 a.m. ET.
The online replay will follow shortly after the call and be available
for replay for 30 days.

Hibbett Sports, headquartered in Birmingham, Alabama, is a leading
athletic-inspired fashion retailer with more than 1,000 stores,
primarily located in small and mid-sized communities across the country.
Founded in 1945, Hibbett stores have a rich history of convenient
locations, personalized customer service and access to coveted footwear,
apparel and equipment from top brands like Nike, Under Armour and
Adidas. Consumers can browse styles, find new releases, shop looks and
make purchases online or in their nearest store by visiting www.Hibbett.com.
Follow us @HibbettSports.

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
preliminary financial results, the effect on comparable sales
comparisons in Fiscal 2019 resulting from the 53
rd
week in Fiscal 2018, the effect of recent tax reform changes and the
residual impact in Fiscal 2019 of the sale of the Hibbett Team Division.

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 28, 2017, and in our Quarterly Reports on Form 10-Q
filed on June 2, 2017, September 5, 2017 and December 4, 2017. 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.

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