- \n
- Q1 Comparable Sales Increase 4.1% Versus Prior Year; Net Sales Up 7.4% Year-Over-Year<\/b><\/li>\n
- Q1 Diluted EPS of $2.74; 10.1% Operating Income Margin<\/b><\/li>\n
- Updates Full Year Fiscal 2024 Guidance to Reflect A More Cautious Consumer Outlook<\/b><\/li>\n<\/ul>\n
BIRMINGHAM, Ala.–(BUSINESS WIRE<\/a>)–
\nHibbett, Inc. (Nasdaq\/GS: HIBB), an athletic-inspired fashion retailer, today provided financial results for its first quarter ended April 29, 2023, and business updates.<\/p>\n\nMike Longo, President and Chief Executive Officer, stated, \u201cHibbett posted solid sales results in a challenging environment, delivering a 4.1% comparable sales increase and a total sales increase of 7.4% versus last year. We maintain very good relationships with our valued brand partners that enables us to maintain our new store growth plan and provide the product assortment to meet consumer\u2019s narrowed demand. We\u2019re investing in our already best-in-class consumer experience while also taking costs out of the business, producing leverage on SG&A of 140 basis points versus last year. We believe our product array and outstanding customer service is a competitive advantage, resulting in market share gains.\u201d<\/p>\n
\nMr. Longo continued, \u201cOur consumers are facing a number of headwinds that range from inflation to concerns over outright job loss. Of note, the total amount of the average tax refund was unfavorable to last year by approximately 10%. We believe this disproportionately impacted our consumer and impacted our sales in the important first quarter of the year. Additionally, the athletic inspired segment of our industry is carrying surplus inventory and therefore experienced an elevated level of promotional activity. As a result of the challenging retail environment, consumers are focused on a narrower range of products. The combination of these factors is a major contributor to our revised guidance for the remainder of this fiscal year. Notwithstanding our more cautious near-term consumer outlook, we believe Hibbett remains well positioned for the long-term to continue to grow and increase market share.\u201d<\/p>\n
First Quarter Results<\/span><\/b><\/p>\n
\nNet sales for the 13-weeks ended April 29, 2023, increased 7.4% to $455.5 million compared with $424.1 million for the 13-weeks ended April 30, 2022. Comparable sales increased 4.1% versus the prior year. Brick and mortar comparable sales were up 4.7% while e-commerce sales increased 0.6% on a year-over-year basis. E-commerce represented 13.7% of total net sales for the 13-weeks ended April 29, 2023, compared to 14.6% in the 13-weeks ended April 30, 2022.<\/p>\n
\nGross margin was 33.7% of net sales for the 13-weeks ended April 29, 2023, compared with 37.0% of net sales for the 13-weeks ended April 30, 2022. The approximate 330 basis point decline was driven primarily by lower average product margin which was about 375 basis points lower than the prior year due to higher promotional activity across both footwear and apparel. Store occupancy was relatively flat as a percent of sales year-over-year while both freight and logistics operations were favorable as a percentage of net sales.<\/p>\n
\nStore operating, selling and administrative (\u201cSG&A\u201d) expenses were 21.1% of net sales for the 13-weeks ended April 29, 2023, compared with 22.5% of net sales for the 13-weeks ended April 30, 2022. The decrease of 140 basis points is primarily the result of expense reduction initiatives, lower advertising spend and reduced incentive compensation expense partially offset by wage inflation.<\/p>\n
\nNet income for the 13-weeks ended April 29, 2023, was $35.9 million, or $2.74 per diluted share, compared with net income of $39.3 million, or $2.89 per diluted share, for the 13-weeks ended April 30, 2022.<\/p>\n
\nFor the 13-weeks ended April 29, 2023, we opened 10 net new stores, bringing the store base to 1,143 in 36 states.<\/p>\n
\nAs of April 29, 2023, we had $26.9 million of available cash and cash equivalents on our unaudited condensed consolidated balance sheet and $103.6 million of debt outstanding. Inventory as of April 29, 2023, was $438.0 million, a 39.1% increase compared to the prior year first quarter and up 4.1% from the beginning of the year.<\/p>\n
\nDuring the 13-weeks ended April 29, 2023, we repurchased 159,592 shares of common stock under our Stock Repurchase Program (the \u201cRepurchase Program\u201d) for a total expenditure of $10.2 million. We also paid a quarterly dividend equal to $0.25 per outstanding common share that resulted in a cash outlay of $3.2 million.<\/p>\n
Fiscal 2024 Outlook<\/span><\/b><\/p>\n
\nThe current retail business climate is challenging as consumers have been dealing with persistent inflation and higher interest rates. Consumer confidence has weakened, which we believe has impacted purchasing behavior, especially for discretionary products and services. We anticipate the risks noted below will impact us through the remainder of the 53-week fiscal year ending February 3, 2024 (\u201cFiscal 2024\u201d) and expect these headwinds will be more impactful on our second fiscal quarter than in the back half of the year. Therefore, we are updating the guidance for Fiscal 2024 that we presented on March 3, 2023, in conjunction with the release of our results for the fiscal fourth quarter and full year ended January 28, 2023.<\/p>\n
\nRisks to be considered for the remainder of Fiscal 2024 include inflation, a high interest rate environment, reduced consumer confidence, the ongoing promotional environment, potential reduction or deferral of discretionary purchases, a tight labor market, inventory quantities above ideal levels and geopolitical conflicts. These factors may contribute to the complexity and volatility in forecasting Fiscal 2024 results.<\/p>\n
\nOur updated full-year guidance compared to the previous guidance provided is summarized in the following table:<\/p>\n
- Q1 Diluted EPS of $2.74; 10.1% Operating Income Margin<\/b><\/li>\n
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