Net income rose 8% to $28,388,000 from $26,214,000 for the period ended May 3 despite decelerating monthly comps during the period. Revenues increased 9% to $261,909,000 from $239,993,000 as the retailer opened a record 16 doors and expanded four locations. Comps rose 4.1% overall, starting with a 7.2% increase in Feb. that was followed by a 2.9% gain in March and 0.9% in April. Average ticket was up midsingle digits while the number of transactions fell in the low-single digits. HIBB said Q2 to-date comps were running down low-single digits, but expected to get a big boost from a May 24 product launch from Nike.
Hibbett, which took a 40 b.p. hit to gross margin in Q1 to 37.5%, is forecasting accelerating product margins for the remaining quarters of the FY due to a better inventory position (-6% at Q1 end) and the fact that 70% of products will be on its new product optimization program by Sep.
The 939-door retailer, on plan for 55-60 net openings and 10-15 expansions this FY, has re-affirmed its FY15 EPS range outlook of $2.78-2.98 ($75.3 mm) with comps rising low- to mid-single digits and a flat to slightly positive product gross margin rate.
