Hibbett Sports : Reports Fourth Quarter and Fiscal 2014 Results

Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the fourth quarter and fiscal year ended February 1, 2014.

Fourth Quarter Results

Net sales for the 13-week period ended February 1, 2014, increased 0.2% to $217.8 million compared with $217.4 million for the 14-week period ended February 2, 2013. Comparable store sales increased 1.7% on a calendar basis (comparable 13-week period).

Gross profit was 35.8% of net sales for the 13-week period ended February 1, 2014, compared with 36.1% for the 14-week period ended February 2, 2013.

Store operating, selling and administrative expenses were 21.7% of net sales for the 13-week period ended February 1, 2014, compared with 20.3% of net sales for the 14-week period ended February 2, 2013.

Net income for the 13-week period ended February 1, 2014, was $16.9 million compared with $19.4 million for the 14-week period ended February 2, 2013. Earnings per diluted share were $0.64 for the 13-week period ended February 1, 2014, compared with $0.73 for the 14-week period ended February 2, 2013. The 14^th week in Fiscal 2013 added approximately $0.07 in earnings per diluted share to the Fiscal 2013 quarterly and annual results.

Fiscal 2014 Results

Net sales for the 52-week period ended February 1, 2014, increased 4.1% to $852.0 million compared with $818.7 million for the 53-week period ended February 2, 2013. Comparable store sales increased 1.8% on a calendar basis (comparable 52-week to 52-week period).

Gross profit was 36.3% of net sales for the 52-week period ended February 1, 2014, compared with 36.5% for the 53-week period ended February 2, 2013.

Store operating, selling and administrative expenses were 21.3% of net sales for the 52-week period ended February 1, 2014, compared with 20.8% of net sales for the 53-week period ended February 2, 2013.

Net income for the 52-week period ended February 1, 2014, was $70.9 million compared with $72.6 million for the 53-week period ended February 2, 2013. Earnings per diluted share were $2.70 for the 52-week period ended February 1, 2014, compared with $2.72 for the 53-week period ended February 2, 2013.

Jeff Rosenthal, President and Chief Executive Officer, stated, “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."

For the year, Hibbett opened 72 new stores, expanded 14 high performing stores and closed 18 underperforming stores, bringing the store base to 927 in 31 states as of February 1, 2014.

Liquidity and Stock Repurchases

Hibbett ended the fourth quarter of Fiscal 2014 with $66.2 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 fourth quarter, the Company repurchased 21,500 shares of common stock for a total expenditure of $1.3 million. Approximately $229.6 million of the total authorization remained for future stock repurchases as of February 1, 2014.

Fiscal 2015 Outlook

The Company provided the following guidance for Fiscal 2015:

• Earnings per diluted share in the range of $2.78 to $2.98
• Increase in comparable store sales in the low-to-mid single digit range
• Approximately 75 to 80 new stores, 10 to 15 expansions and 15 to 20 closures
• Flat to slightly positive product gross margin rate compared to Fiscal 2014
• An estimated $0.11 per diluted share impact due to the transition to the new wholesaling and logistics facility in April/May, ongoing operational costs after opening, and increased depreciation
• Increase in SG&A expense as a percent of sales due to increased health care costs (estimated $0.02 per diluted share), as well as increases in marketing and IT costs

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 14, 2014, to discuss fourth quarter and Fiscal 2014 results. The number to call for the live interactive teleconference is (212) 231-2921. A replay of the conference call will be available until March 21, 2014, by dialing (402) 977-9140 and entering the passcode, 21646089.

The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter and Fiscal 2014 conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations, or www.streetevents.com, on March 14, 2014, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and be available for replay for one year.

Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. The Company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centers and enclosed malls.

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 store opening, expansion and closing plans, liquidity, sales trends, margin trends, the effects of the transition to the new wholesaling and logistics facility, impact of healthcare costs, earnings per diluted share, comparable store sales, and our growth, execution and productivity expectations. 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 April 1, 2013 and in our Quarterly Reports on Form 10-Q filed on June 10, 2013, September 9, 2013 and December 10, 2013. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could turn out to 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.