LONDON, UK / ACCESSWIRE / June 7, 2017 / Pro-Trader Daily publishes post-earnings coverage on Hibbett Sports, Inc. (NASDAQ: HIBB) following the Company's posting of its first quarter fiscal 2018 financial results on May 18, 2017. The sporting goods retailer updated its earnings, comparable store sales, and gross margin outlook. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

Hibbett Sports' net sales for the 13-week period ended April 29, 2017, decreased 2.3% to $275.7 million compared with $282.1 million for the 13-week period ended April 30, 2016. The Company's revenue numbers missed analysts' consensus estimates of $277.3 million. Hibbett Sports' comparable store sales decreased 4.9%.

For Q1 FY18, Hibbett Sports' gross profit was 35.6% of net sales compared with 37.2% for Q1 FY17. The decrease was mainly due to markdowns taken to liquidate excess and aged inventory, and de-leverage of logistics and store occupancy expenses associated with lower comparable store sales. The Company's product margin decreased 130 basis points, mainly due to markdowns associated with managing inventory.

Hibbett Sports' store operating, selling, and administrative expenses were 21.2% of net sales for the reported quarter compared with 19.9% of net sales for the prior year's same quarter. The increase was mainly due to de-leverage associated with lower comparable store sales and continued investments in the Company's Omni-channel initiative. The Company's operating income declined 23% on a y-o-y basis to $34.2 million and was 12.4% of sales for the reported quarter versus 15.7% in the prior year's comparable quarter.

Hibbett Sports' net income for Q1 FY18 was $20.9 million compared with $27.9 million for the prior year's same quarter. The Company's earnings per diluted share were $0.97 for the reported quarter compared with $1.22 for the prior year's same quarter. Hibbett Sports' earnings topped Wall Street's expectations of $0.96 per share.

Jeff Rosenthal, President and Chief Executive Officer, stated:

"After a double-digit decline in comparable store sales in February, trends improved in March and April with comparable store sales in the positive low- to mid-single-digit range. However, the sales shortfall in February was not fully offset, which led to a 4.9% decline in comparable store sales for the quarter. Footwear continued to perform well with comparable store sales in the positive low single-digit range, but apparel and equipment posted negative comparable store sales. Gross margin was also negatively affected due to markdowns taken to manage inventory, although this enabled us to reduce inventory to levels below last year. Given the softer sales environment, we were able to keep tight controls on expenses, which helped overall profitability."

Store Update

For Q1 FY18, Hibbett Sports opened 13 new stores, expanded four high performing stores and closed nine underperforming stores, bringing the store base to 1,082 in 35 states as of April 29, 2017.

Store-to Home

During Q1 FY18, Hibbett Sports implemented its store-to-home capability in all stores as it was encouraged by the early results. The Company expects to see increased benefits from this initiative going forward, as it gives the Company's stores a great tool to improve sales and to enhance customer experience.

Liquidity and Stock Repurchases

Hibbett Sports ended Q1 FY18 with $75.9 million of available cash and cash equivalents on the consolidated balance sheet. The Company had no outstanding bank debt and has full availability of its $80.0 million unsecured credit facilities. Hibbett Sports' inventory decreased 1% on a y-o-y basis and was 3.6% lower on a per-store basis.

During Q1 FY18, the Company repurchased 748,134 shares of common stock for a total expenditure of $22.3 million. Approximately $236.2 million of the total authorization remained for future stock repurchases as of April 29, 2017.

Hibbett Sports spent $7.8 million in CapEx during Q1 FY18, as the Company completed the rollout of its new POS system and continued its store growth.

Outlook

For FY18, Hibbett Sports updated its earnings per diluted share guidance to a range of $2.35 to $2.55 compared with its previous expectations for earnings in the range of $2.65 to $2.85 per share. The Company expects comparable store sales in the range of negative 1.0% to positive 1.0% compared with previous guidance of an increase in the low single-digit range. Hibbett Sports is also forecasting a reduction in gross margin rate of 55-75 basis points compared to the earlier forecast of a relatively flat gross margin rate compared with Fiscal 2017.

Stock Performance

At the close of trading session on Tuesday, June 06, 2017, Hibbett Sports' stock price was marginally down by 0.88% to end the day at $22.60. A total volume of 401.29 thousand shares were exchanged during the session. The Company's shares are trading at a PE ratio of 9.15 and currently have a market cap of $498.78 million.

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