Hibbett Sports Inc.,a sporting goods retailer,announced results for the third quarter ended October 27,2012.
Third Quarter Results
Net sales for the 13-week period ended October 27,2012,increased 9.6%to$202.9 million compared with$185.2 million for the 13-week period ended October 29,2011.Comparable store sales increased 6.4%.
Gross profit for the 13-week period ended October 27,2012,increased 11.2%to$75.4 million from$67.8 million for the 13-week period ended October 29,2011.As a percent to net sales,gross profit improved to 37.2%compared to 36.6%for the 13-week period ended October 29,2011.The improvement as a percent of net sales was due to improved product margin and leveraging store occupancy costs.
Store operating,selling and administrative expenses improved to 20.7%of net sales for the 13-week period ended October 27,2012,compared to 21.3%of net sales for the 13-week period ended October 29,2011.This was primarily attributed to the leveraging of store level costs and decreased debit card transaction fees.
Net income for the 13-week period ended October 27,2012,increased 18.8%to$19.0 million compared with$16.0 million for the 13-week period ended October 29,2011.Earnings per diluted share increased 20.3%to$0.71 compared with$0.59 for the 13-week period ended October 29,2011.
Fiscal Year to Date Results
Net sales for the 39-week period ended October 27,2012,increased 10.9%to$601.3 million compared with$542.0 million for the 39-week period ended October 29,2011.Comparable store sales increased 7.7%.
Gross profit for the 39-week period ended October 27,2012,increased 13.5%to$220.4 million from$194.2 million for the 39-week period ended October 29,2011.As a percent to net sales,gross profit improved to 36.7%for the 39-week period ended October 27,2012,compared to 35.8%for the 39-week period ended October 29,2011.The improvement as a percent of net sales was due to improved product margin and leveraging store occupancy costs.
Store operating,selling and administrative expenses improved to 20.9%of net sales for the 39-week period ended October 27,2012,compared to 21.4%of net sales for the 39-week period ended October 29,2011.This was primarily attributed to the leveraging of store level costs and decreased debit card transaction fees.
Net income for the 39-week period ended October 27,2012,increased 23.1%to$53.2 million compared with$43.2 million for the 39-week period ended October 29,2011.Earnings per diluted share increased 27.6%to$1.99 compared with$1.56 for the 39-week period ended October 29,2011.
Jeff Rosenthal,President and Chief Executive Officer,stated,"The back-to-school season,particularly in August,was as strong as we had anticipated.The positive trends in apparel and footwear,along with our continued focus on local assortments and exceptional inventory control,resulted in significant margin expansion and another increase to our Fiscal 2013 guidance.We are well positioned to maintain this positive momentum during the upcoming holiday season."
For the quarter,Hibbett opened 13 new stores,expanded 4 high performing stores and closed 2 underperforming stores,bringing the store base to 848 in 26 states as of October 27,2012.
Liquidity and Stock Repurchases
Hibbett ended the third quarter of Fiscal 2013 with$75.3 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 third quarter,the Company repurchased 206,729 shares of common stock for a total expenditure of$11.8 million.On November 15,2012,the Board of Directors of the Company authorized a new Stock Repurchase Program(Program)of$250.0 million expiring on January 29,2016.Effective immediately,the new Program replaces the existing authorization which was due to expire on February 2,2013.Under prior authorizations,the Company has purchased 11,900,356 shares of common stock to date at a cost of$316.6 million.
Fiscal 2013 Outlook
The Company increased its earnings guidance for Fiscal 2013 to a range of$2.66 to$2.71 per diluted share(which includes an expected contribution of$0.09 to$0.11 per diluted share from the 53rd week)and an increase in comparable store sales in the mid single digit range.For Fiscal 2013,the Company expects to open 57 to 60 new stores,expand approximately 17 high performing stores,and close up to 18 stores.
The Company also announced it would begin construction of its new 412,000-square-foot wholesaling and logistics facility in Alabama in early first quarter Fiscal 2014.
