DELAWARE
(State or other jurisdiction of incorporation or organization)
|
20-8159608
(I.R.S. Employer Identification No.)
|
Yes
|
X
|
No
|
Yes
|
X
|
No
|
Large accelerated filer
|
Accelerated filer
|
X
|
||
Non-accelerated filer
|
Smaller reporting company
|
Emerging growth company
|
Yes
|
No
|
X
|
HIBBETT SPORTS, INC.
|
|||
INDEX
|
|||
Page
|
|||
PART I. FINANCIAL INFORMATION
|
|||
Item 1.
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
Item 2.
|
13
|
||
Item 3.
|
23
|
||
Item 4.
|
23
|
||
PART II. OTHER
INFORMATION
|
|||
Item 1.
|
24
|
||
Item 1A.
|
24
|
||
Item 2.
|
25
|
||
Item 6.
|
25
|
||
25
|
|||
26
|
ASSETS
|
November 3, 2018
|
February 3, 2018
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
121,177
|
$
|
73,544
|
||||
Inventories, net
|
256,854
|
253,201
|
||||||
Other current assets
|
23,395
|
20,029
|
||||||
Total current assets
|
401,426
|
346,774
|
||||||
Property and equipment
|
260,688
|
258,010
|
||||||
Less accumulated depreciation and amortization
|
156,789
|
148,312
|
||||||
Property and equipment, net
|
103,899
|
109,698
|
||||||
Other assets, net
|
4,690
|
5,374
|
||||||
Total Assets
|
$
|
510,015
|
$
|
461,846
|
||||
LIABILITIES AND STOCKHOLDERS' INVESTMENT
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
109,445
|
$
|
93,435
|
||||
Accrued payroll expenses
|
6,248
|
10,424
|
||||||
Deferred rent
|
5,855
|
5,909
|
||||||
Credit facilities
|
25,000
|
-
|
||||||
Capital lease obligations
|
644
|
663
|
||||||
Other accrued expenses
|
9,155
|
5,136
|
||||||
Total current liabilities
|
156,347
|
115,567
|
||||||
Deferred rent
|
19,330
|
20,291
|
||||||
Other liabilities
|
5,857
|
6,392
|
||||||
Total liabilities
|
181,534
|
142,250
|
||||||
Stockholders' Investment:
|
||||||||
Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued
|
-
|
-
|
||||||
Common stock, $.01 par value, 80,000,000 shares authorized, 38,971,930 and 38,862,929 shares
issued at November 3, 2018 and February 3, 2018, respectively
|
390
|
389
|
||||||
Paid-in capital
|
184,753
|
180,536
|
||||||
Retained earnings
|
753,042
|
731,901
|
||||||
Treasury stock, at cost; 20,682,342 and 19,910,291 shares repurchased at November 3, 2018 and
February 3, 2018, respectively
|
(609,704
|
)
|
(593,230
|
)
|
||||
Total stockholders' investment
|
328,481
|
319,596
|
||||||
Total Liabilities and Stockholders' Investment
|
$
|
510,015
|
$
|
461,846
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3,
2018 |
October 28,
2017
|
November 3,
2018 |
October 28,
2017
|
|||||||||||||
Net sales
|
$
|
216,888
|
$
|
237,834
|
$
|
702,718
|
$
|
701,480
|
||||||||
Cost of goods sold
|
146,376
|
161,721
|
469,082
|
472,741
|
||||||||||||
Gross margin
|
70,512
|
76,113
|
233,636
|
228,739
|
||||||||||||
Store operating, selling and administrative expenses
|
62,342
|
57,993
|
186,211
|
169,886
|
||||||||||||
Depreciation and amortization
|
6,328
|
6,333
|
18,847
|
18,060
|
||||||||||||
Operating income
|
1,842
|
11,787
|
28,578
|
40,793
|
||||||||||||
Interest (income) expense, net
|
(277
|
)
|
53
|
(387
|
)
|
176
|
||||||||||
Income before provision for income taxes
|
2,119
|
11,734
|
28,965
|
40,617
|
||||||||||||
Provision for income taxes
|
620
|
4,170
|
7,179
|
15,320
|
||||||||||||
Net income
|
$
|
1,499
|
$
|
7,564
|
$
|
21,786
|
$
|
25,297
|
||||||||
Basic earnings per share
|
$
|
0.08
|
$
|
0.37
|
$
|
1.16
|
$
|
1.22
|
||||||||
Diluted earnings per share
|
$
|
0.08
|
$
|
0.37
|
$
|
1.15
|
$
|
1.21
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
18,495
|
20,318
|
18,763
|
20,805
|
||||||||||||
Diluted
|
18,675
|
20,386
|
18,944
|
20,905
|
Thirty-Nine Weeks Ended
|
||||||||
November 3,
2018
|
October 28,
2017
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
21,786
|
$
|
25,297
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
18,847
|
18,060
|
||||||
Stock-based compensation
|
3,411
|
3,179
|
||||||
Other non-cash adjustments to net income:
|
548
|
237
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Inventories, net
|
(2,659
|
)
|
15,278
|
|||||
Prepaid expenses and other
|
(3,288
|
)
|
37
|
|||||
Accounts payable
|
15,818
|
14,178
|
||||||
Other assets and liabilities
|
(1,990
|
)
|
7,007
|
|||||
Net cash provided by operating activities
|
52,473
|
83,273
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Capital expenditures
|
(13,949
|
)
|
(18,875
|
)
|
||||
Other, net
|
257
|
39
|
||||||
Net cash used in investing activities
|
(13,692
|
)
|
(18,836
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Borrowings under credit facilities, net
|
25,000
|
-
|
||||||
Cash used for stock repurchases
|
(16,058
|
)
|
(44,469
|
)
|
||||
Net payments on capital lease obligations
|
(481
|
)
|
(444
|
)
|
||||
Proceeds from options exercised and purchase of shares under the employee stock purchase plan
|
807
|
554
|
||||||
Other, net
|
(416
|
)
|
(711
|
)
|
||||
Net cash used in financing activities
|
8,852
|
(45,070
|
)
|
|||||
Net increase in cash and cash equivalents
|
47,633
|
19,367
|
||||||
Cash and cash equivalents, beginning of period
|
73,544
|
38,958
|
||||||
Cash and cash equivalents, end of period
|
$
|
121,177
|
$
|
58,325
|
||||
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3, 2018
|
October 28, 2017
|
November 3, 2018
|
October 28, 2017
|
|||||||||||||
Footwear
|
$
|
118,298
|
$
|
131,646
|
$
|
395,948
|
$
|
389,641
|
||||||||
Apparel
|
58,984
|
58,563
|
179,244
|
174,534
|
||||||||||||
Equipment
|
39,606
|
47,625
|
127,526
|
137,305
|
||||||||||||
Total
|
$
|
216,888
|
$
|
237,834
|
$
|
702,718
|
$
|
701,480
|
·
|
The stand-alone benefit received by customers through the Hibbett Rewards customer loyalty program recorded as a separate performance
obligation,
|
·
|
Gift card breakage income recognized in net sales in proportion to the customer redemption pattern, and
|
·
|
The liability for net sales returns recognized on a gross basis including a right to recover asset measured at the former carrying
value of the inventory less any expected recovery costs.
|
As Reported
|
ASU 2014-09 Effect (1)
|
Excluding ASU 2014-09 Effect
|
||||||||||
Inventories, net
|
$
|
256,854
|
$
|
(278
|
)
|
$
|
257,132
|
|||||
Other current assets
|
$
|
23,395
|
$
|
201
|
$
|
23,194
|
||||||
Accounts payable
|
$
|
109,445
|
$
|
1,116
|
$
|
108,329
|
||||||
Other accrued expenses
|
$
|
9,155
|
$
|
837
|
$
|
8,318
|
As Reported
|
ASU 2014-09 Effect
|
Excluding ASU 2014-09 Effect
|
||||||||||
Net sales
|
$
|
216,888
|
$
|
508
|
$
|
216,380
|
||||||
Cost of goods sold
|
$
|
146,376
|
$
|
364
|
$
|
146,012
|
||||||
Gross margin
|
$
|
70,512
|
$
|
144
|
$
|
70,368
|
||||||
Store operating, selling and administrative expenses
|
$
|
62,342
|
$
|
51
|
$
|
62,291
|
||||||
Income before provision for income taxes
|
$
|
2,119
|
$
|
92
|
$
|
2,027
|
||||||
Provision for income taxes
|
$
|
620
|
$
|
27
|
$
|
593
|
||||||
Net income
|
$
|
1,499
|
$
|
65
|
$
|
1,434
|
||||||
Diluted earnings per share
|
$
|
0.08
|
$
|
-
|
$
|
0.08
|
As Reported
|
ASU 2014-09 Effect
|
Excluding ASU 2014-09 Effect
|
||||||||||
Net sales
|
$
|
702,718
|
$
|
(17
|
)
|
$
|
702,735
|
|||||
Cost of goods sold
|
$
|
469,082
|
$
|
42
|
$
|
469,040
|
||||||
Gross margin
|
$
|
233,636
|
$
|
(59
|
)
|
$
|
233,695
|
|||||
Store operating, selling and administrative expenses
|
$
|
186,211
|
$
|
(12
|
)
|
$
|
186,223
|
|||||
Income before provision for income taxes
|
$
|
28,965
|
$
|
(47
|
)
|
$
|
29,012
|
|||||
Provision for income taxes
|
$
|
7,179
|
$
|
(12
|
)
|
$
|
7,191
|
|||||
Net income
|
$
|
21,786
|
$
|
(35
|
)
|
$
|
21,821
|
|||||
Diluted earnings per share
|
$
|
1.15
|
$
|
-
|
$
|
1.15
|
November 3, 2018
|
February 3, 2018
|
|||||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
|||||||||||||||||||
Short-term investments
|
$
|
161
|
$
|
-
|
$
|
-
|
$
|
463
|
$
|
-
|
$
|
-
|
||||||||||||
Long-term investments
|
2,595
|
-
|
-
|
2,418
|
-
|
-
|
||||||||||||||||||
Total investments
|
$
|
2,756
|
$
|
-
|
$
|
-
|
$
|
2,881
|
$
|
-
|
$
|
-
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Stock-based compensation expense by type:
|
||||||||||||||||
Stock options
|
$
|
8
|
$
|
8
|
$
|
185
|
$
|
181
|
||||||||
Restricted stock units
|
702
|
796
|
3,074
|
2,905
|
||||||||||||
Employee stock purchases
|
24
|
19
|
81
|
75
|
||||||||||||
Director deferred compensation
|
24
|
6
|
71
|
18
|
||||||||||||
Total stock-based compensation expense
|
758
|
829
|
3,411
|
3,179
|
||||||||||||
Income tax benefit recognized
|
172
|
305
|
762
|
1,151
|
||||||||||||
Stock-based compensation expense, net of income tax
|
$
|
586
|
$
|
524
|
$
|
2,649
|
$
|
2,028
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Stock options
|
-
|
18,577
|
19,994
|
38,949
|
||||||||||||
Restricted stock unit awards
|
-
|
-
|
169,572
|
108,429
|
||||||||||||
Performance-based restricted stock unit awards
|
-
|
-
|
44,700
|
54,900
|
||||||||||||
Deferred stock units
|
1,247
|
417
|
3,249
|
904
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Shares purchased
|
6,029
|
6,239
|
18,360
|
16,984
|
||||||||||||
Average price per share
|
$
|
15.98
|
$
|
12.11
|
$
|
17.56
|
$
|
18.00
|
||||||||
Weighted average fair value at grant date
|
$
|
5.10
|
$
|
4.52
|
$
|
4.97
|
$
|
4.43
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Weighted-average shares used in basic computations
|
18,495
|
20,318
|
18,763
|
20,805
|
||||||||||||
Dilutive equity awards
|
180
|
68
|
181
|
100
|
||||||||||||
Weighted-average shares used in diluted computations
|
18,675
|
20,386
|
18,944
|
20,905
|
· |
our expectations concerning store growth, product margin, the remodeling, relocation or expansion of selected existing stores, and growth in our e-commerce
business;
|
· |
our expectations concerning cash needs and capital expenditures, including our intentions and ability to fund our new stores and other future capital
expenditures and working capital requirements;
|
· |
our expectations concerning the impact of the acquisition of City Gear, including the amount and timing of acquisition-related expenses;
|
· |
the expected impact of the 53rd week shift and the sale of our Team Division on net sales for the fourth quarter of Fiscal 2019;
|
· |
our ability and plans to renew our credit facilities;
|
· |
our estimates and assumptions as they relate to preferable tax and financial accounting methods, accruals, inventory valuations, long-lived assets, store closures, carrying amount and liquidity of financial instruments, fair value of options and other stock-based compensation, economic and useful
lives of depreciable assets and leases, income tax liabilities, deferred taxes and uncertain tax positions;
|
· |
our assessment of the materiality and impact on our business of recent accounting pronouncements adopted by the Financial Accounting Standards Board;
|
· |
our assumptions as they relate to pending legal actions and other contingencies; and
|
· |
seasonality and the effect of inflation.
|
Fiscal 2018
|
||||||||||||||||||||
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
Full Year
|
||||||||||||||||
Comparable sales change (originally reported)
|
-4.9
|
%
|
-11.7
|
%
|
-1.3
|
%
|
1.6
|
%
|
-3.8
|
%
|
||||||||||
Comparable sales change (adjusted for week shift)
|
-4.8
|
%
|
-11.0
|
%
|
0.3
|
%
|
1.0
|
%
|
-3.6
|
%
|
||||||||||
Impact of week shift
|
0.1
|
%
|
0.7
|
%
|
1.6
|
%
|
-0.6
|
%
|
0.2
|
%
|
||||||||||
Fiscal 2018
|
||||||||||||||||||||
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
Full Year
|
||||||||||||||||
Net sales (originally reported)
|
$
|
275.7
|
$
|
188.0
|
$
|
237.8
|
$
|
266.7
|
$
|
968.2
|
||||||||||
Net sales (adjusted for one week)
|
$
|
275.2
|
$
|
206.0
|
$
|
220.6
|
$
|
265.8
|
$
|
967.6
|
||||||||||
Impact of week shift
|
$
|
(0.5
|
)
|
$
|
18.0
|
$
|
(17.2
|
)
|
$
|
(0.9
|
)
|
$
|
(0.6
|
)
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
||||||||||||||||||||||||||||||
November 3,
2018 |
October 28,
2017 |
November 3,
2018 |
October 28,
2017 |
||||||||||||||||||||||||||||
Statements of Operations
|
|||||||||||||||||||||||||||||||
Net sales (decrease) increase
|
-8.8
|
%
|
0.4
|
%
|
0.2
|
%
|
-3.4
|
%
|
|||||||||||||||||||||||
Comparable sales increase (decrease)
|
0.1
|
%
|
1 |
|
-1.3
|
%
|
2 |
1.4
|
%
|
1
|
|
-5.7
|
%
|
2 |
|||||||||||||||||
Gross margin (as a % to net sales)
|
32.5
|
%
|
32.0
|
%
|
33.2
|
%
|
32.6
|
%
|
|||||||||||||||||||||||
Store operating, selling and administrative expenses (as a % to net sales)
|
28.7
|
%
|
24.4
|
%
|
26.5
|
%
|
24.2
|
%
|
|||||||||||||||||||||||
Depreciation and amortization (as a % to net sales)
|
2.9
|
%
|
2.7
|
%
|
2.7
|
%
|
2.6
|
%
|
|||||||||||||||||||||||
Provision for income taxes (as a % to net sales)
|
0.3
|
%
|
1.8
|
%
|
1.0
|
%
|
2.2
|
%
|
|||||||||||||||||||||||
Net income (as a % to net sales)
|
0.7
|
%
|
3.2
|
%
|
3.1
|
%
|
3.6
|
%
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Diluted earnings per share
|
$
|
0.08
|
$
|
0.37
|
$
|
1.15
|
$
|
1.21
|
|||||||||||||||||||||||
Weighted-average dilutive shares (in thousands)
|
18,675
|
20,386
|
18,944
|
20,905
|
|||||||||||||||||||||||||||
Balance Sheets
|
|||||||||||||||||||||||||||||||
Ending cash and cash equivalents (in thousands)
|
$
|
121,177
|
$
|
58,325
|
|||||||||||||||||||||||||||
Average inventory per store
|
$
|
246,501
|
$
|
245,307
|
|||||||||||||||||||||||||||
Store Information
|
|||||||||||||||||||||||||||||||
Beginning of period
|
1,059
|
1,080
|
1,079
|
1,078
|
|||||||||||||||||||||||||||
New stores opened
|
7
|
13
|
20
|
32
|
|||||||||||||||||||||||||||
Stores closed
|
(24
|
)
|
(11
|
)
|
(57
|
)
|
(28
|
)
|
|||||||||||||||||||||||
End of period
|
1,042
|
1,082
|
1,042
|
1,082
|
|||||||||||||||||||||||||||
Stores expanded or relocated
|
1
|
2
|
9
|
12
|
|||||||||||||||||||||||||||
Estimated square footage at end of period (in thousands)
|
5,957
|
6,158
|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Share Repurchase Activity
|
|||||||||||||||||||||||||||||||
Shares purchased
|
395,450
|
1,200,470
|
772,051
|
2,231,213
|
|||||||||||||||||||||||||||
Cost (in thousands)
|
$
|
7,625
|
$
|
15,929
|
$
|
16,474
|
$
|
45,180
|
· |
We opened seven Hibbett Sports stores and closed 24 underperforming stores. In addition, we relocated one store.
|
· |
A decrease of $17.3 million in net sales was due to the week shift resulting from the 53rd week last year, and a decrease of $2.4
million was due to the sale of our Team Division in December 2017. A negative impact of $0.9 million and $1.8 million from the 53rd week shift and the sale of our Team Division, respectively, will be realized in the fourth
quarter ending February 2, 2019.
|
· |
Comparable store sales increased 0.1% mainly due to strength in branded apparel, partially offset by weakness in licensed products, equipment and
accessories.
|
· |
Footwear was slightly positive with a high single-digit increase in men’s, offset by declines in women’s and kids.
|
· |
Branded apparel experienced a high single-digit increase, and has been positive for four consecutive quarters. Strength was driven by a
double-digit increase in men’s and a high single-digit increase in women’s. Increased investments in extended sizes in both men’s and women’s apparel also performed well. Trend-relevant sportswear with a strong connection to footwear
continued to be the primary driver of the increase.
|
· |
Licensed products experienced a high single-digit decline, although college and NFL showed improvement from recent trends with a low single-digit
decrease. MLB experienced a double-digit decline due to the Astros World Series win last year.
|
· |
Accessories experienced a mid-single digit decline with weak performance in socks and hydration, partially offset by gains in backpacks, cross
body bags and footwear cleaner.
|
· |
Equipment experienced a high single-digit decline due to weakness in fitness, football and basketball, partially offset by positive results in
baseball, softball and volleyball.
|
· |
Product margin increased 113 basis points as a percentage of net sales primarily due to fewer markdowns resulting from lower aged inventory levels.
|
· |
Logistics expenses increased 13 basis points as a percentage of net sales primarily due to de-leverage from lower net sales.
|
· |
Store occupancy expense increased 50 basis points as a percentage of net sales primarily due to de-leverage from lower net sales.
|
· |
Salary costs increased 91 basis points as a percentage of net sales primarily due to de-leverage associated with lower net sales.
|
· |
Advertising costs increased 60 basis points due to additional direct mail initiatives to drive store traffic, and advertising related to
e-commerce.
|
· |
Data processing costs increased 35 basis points as a percentage of net sales mainly due to order processing, customer care, and other variable
costs related to e-commerce.
|
· |
Benefit costs increased 17 basis points as a percentage of net sales mainly due to de-leverage associated with lower net sales.
|
· |
Professional fees increased 8 basis points as a percentage of net sales due to costs associated with the rollout of Buy Online, Pick up in Store
and Reserve Online.
|
GAAP to Non-GAAP Reconciliation
|
||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||
(Unaudited)
|
||||||||||||
Thirteen Weeks Ended
November 3, 2018 |
||||||||||||
GAAP Basis
(As Reported) |
Non-Recurring
Acquisition Costs (1) |
Non-GAAP Basis
November 3,
2018
|
||||||||||
Net sales
|
$
|
216,888
|
$
|
-
|
$
|
216,888
|
||||||
Cost of goods sold
|
146,376
|
-
|
146,376
|
|||||||||
Gross margin
|
70,512
|
-
|
70,512
|
|||||||||
Store operating, selling and administrative expenses
|
62,342
|
1,528
|
60,814
|
|||||||||
Depreciation and amortization
|
6,328
|
-
|
6,328
|
|||||||||
Operating income
|
1,842
|
(1,528
|
)
|
3,370
|
||||||||
Interest (income) expense, net
|
(277
|
)
|
-
|
(277
|
)
|
|||||||
Income before provision for income taxes
|
2,119
|
(1,528
|
)
|
3,647
|
||||||||
Provision for income taxes
|
620
|
(447
|
)
|
1,067
|
||||||||
Net income
|
$
|
1,499
|
$
|
(1,081
|
)
|
$
|
2,580
|
|||||
|
||||||||||||
Basic earnings per share
|
$
|
0.08
|
$
|
(0.06
|
)
|
$
|
0.14
|
|||||
Diluted earnings per share
|
$
|
0.08
|
$
|
(0.06
|
)
|
$
|
0.14
|
|||||
(1) Non-recurring acquisition costs represent costs incurred through November 3, 2018, related to the acquisition of City
Gear, LLC and consists primarily of legal, accounting and professional fees.
|
· |
We opened 20 Hibbett Sports stores and closed 57 underperforming stores. In addition, we expanded six high-performing stores and relocated three
stores.
|
· |
Comparable store sales increased 1.4% mainly due to strength in branded apparel, footwear and cleats partially offset by weakness in licensed
products, equipment, and accessories.
|
· |
A decrease of $5.8 million of net sales was realized due to the sale of our Team Division in December 2017.
|
· |
Footwear experienced a low single-digit increase, driven by strength in lifestyle partially offset by weakness in performance running.
|
· |
Branded apparel experienced a high single-digit increase, with broad-based strength across men’s, women’s and kids.
|
· |
Licensed products experienced a double-digit decline, with weakness in college, MLB and NBA.
|
· |
Accessories experienced a high single-digit decline mainly due to weakness in socks and hydration.
|
· |
Equipment experienced a mid single-digit decline due to weakness in football, basketball and fitness.
|
· |
Product margin increased 38 basis points as a percentage of net sales.
|
· |
Logistics expenses were relatively flat increasing three basis points as a percentage of net sales.
|
· |
Store occupancy expense decreased 29 basis points as a percentage of net sales primarily due to fewer stores and higher e-commerce sales.
|
· |
Salary costs increased 76 basis points as a percentage of net sales primarily due to wage increases against relatively flat sales. Benefit costs
increased 36 basis points as a percentage of net sales primarily due to increased health care costs.
|
· |
Advertising costs increased 75 basis points due to additional direct mail initiatives to drive store traffic and advertising related to
e-commerce.
|
· |
Data processing costs increased 69 basis points as a percentage of net sales mainly due to order processing, customer care and other variable
costs related to e-commerce.
|
· |
Professional fees decreased 16 basis points as a percentage of sales mainly due to reduced consulting and development costs associated with the
e-commerce website and mobile app.
|
GAAP to Non-GAAP Reconciliation
|
||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||
(Unaudited)
|
||||||||||||
Thirty-Nine Weeks Ended
November 3, 2018 |
||||||||||||
GAAP Basis
(As Reported) |
Non-Recurring
Acquisition Costs (1) |
Non-GAAP Basis November 3,
2018 |
||||||||||
Net sales
|
$
|
702,718
|
$
|
-
|
$
|
702,718
|
||||||
Cost of goods sold
|
469,082
|
-
|
469,082
|
|||||||||
Gross margin
|
233,636
|
-
|
233,636
|
|||||||||
Store operating, selling and administrative expenses
|
186,211
|
1,528
|
184,683
|
|||||||||
Depreciation and amortization
|
18,847
|
-
|
18,847
|
|||||||||
Operating income
|
28,578
|
(1,528
|
)
|
30,106
|
||||||||
Interest (income) expense, net
|
(387
|
)
|
-
|
(387
|
)
|
|||||||
Income before provision for income taxes
|
28,965
|
(1,528
|
)
|
30,493
|
||||||||
Provision for income taxes
|
7,179
|
(379
|
)
|
7,558
|
||||||||
Net income
|
$
|
21,786
|
$
|
(1,149
|
)
|
$
|
22,935
|
|||||
|
||||||||||||
Basic earnings per share
|
$
|
1.16
|
$
|
(0.06
|
)
|
$
|
1.22
|
|||||
Diluted earnings per share
|
$
|
1.15
|
$
|
(0.06
|
)
|
$
|
1.21
|
|||||
(1) Non-recurring acquisition costs represent costs incurred through November 3, 2018, related to the acquisition of City
Gear, LLC and consists primarily of legal, accounting and professional fees.
|
Thirty-Nine Weeks Ended
|
||||||||
November 3,
2018 |
October 28,
2017 |
|||||||
Net cash provided by operating activities
|
$
|
52,473
|
$
|
83,273
|
||||
Net cash used in investing activities
|
(13,692
|
)
|
(18,836
|
)
|
||||
Net cash provided by (used in) financing activities
|
8,852
|
(45,070
|
)
|
|||||
Net increase in cash and cash equivalents
|
$
|
47,633
|
$
|
19,367
|
· |
continued enhancements to our omni-channel capability (including our new mobile app);
|
· |
information system infrastructure, projects, and security;
|
· |
the opening of new stores, and the remodeling, relocation or expansion of selected existing stores; and
|
· |
other departmental needs.
|
ITEM 1A. |
Risk Factors.
|
ITEM 2. |
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Period
|
Total Number of Shares Purchased
|
Average Price per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Programs
|
Approximate Dollar Value of Shares that may yet be Purchased Under the Programs (in thousands)
|
||||||||||||
August 5, 2018 to September 1, 2018
|
82,500
|
$
|
19.76
|
82,500
|
$
|
194,029
|
||||||||||
September 2, 2018 to October 6, 2018
|
187,200
|
$
|
19.53
|
187,200
|
$
|
190,372
|
||||||||||
October 7, 2018 to November 3, 2018
|
125,750
|
$
|
18.60
|
125,750
|
$
|
188,034
|
||||||||||
Total
|
395,450
|
$
|
19.28
|
395,450
|
$
|
188,034
|
||||||||||
(1) |
In November 2015, the Board authorized a Stock Repurchase Program (Program) of $300.0 million to repurchase our common stock through February 2, 2019 that
replaced an existing authorization. See Note 7, Stock Repurchase Activity and Note 11, Subsequent Events, to the unaudited condensed consolidated financial statements.
|
HIBBETT SPORTS, INC.
|
||
Date: December 13, 2018
|
By:
|
/s/ Scott J. Bowman
|
Scott J. Bowman
|
||
Senior Vice President & Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
Description
|
|
Certificate of Incorporation and
Bylaws
|
||
3.1
|
Certificate of Incorporation of the Registrant; incorporated herein by reference to Exhibit 3.1 of the Registrant’s Form
8-K filed with the Securities and Exchange Commission on May 31, 2012.
|
|
3.2
|
Bylaws of the Registrant, as amended; incorporated herein by reference to Exhibit 3.2 of the Registrant’s Form 8-K filed
with the Securities and Exchange Commission on May 31, 2012.
|
|
Form of Stock Certificate
|
||
4.1
|
Form of Stock Certificate; attached as Exhibit 99.1 to the Registrant’s Current Report on Form 8-K filed on September 26,
2007.
|
|
Material Agreements
|
||
10.1
|
Membership Interest and Warrant Purchase Agreement; incorporated herein by reference to Exhibit 2.1 of the Registrant’s
Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2018.
|
|
10.2
|
Second Amended and Restated Demand Note with Bank of America, N.A.; incorporated herein by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2018.
|
|
10.3
|
Amended and Restated Demand Note with Regions Bank; incorporated herein by reference to Exhibit 10.2 of the
Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2018.
|
|
Certifications
|
||
31.1
|
*
|
|
31.2
|
*
|
|
32.1
|
*
|
|
Interactive Data Files
|
||
The following financial information from the Quarterly Report on Form 10-Q for the fiscal quarter ended November 3, 2018, formatted in XBRL (eXtensible Business
Reporting Language) and submitted electronically herewith: (i) the Unaudited Condensed Consolidated Balance Sheets at November 3, 2018 and February 3, 2018; (ii) the Unaudited Condensed Consolidated Statements of Operations for the thirteen
and thirty-nine weeks ended November 3, 2018 and October 28, 2017; (iii) the Unaudited Condensed Consolidated Statements of Cash Flows for the thirty-nine weeks ended November 3, 2018 and October 28, 2017; and (iv) the Notes to Unaudited
Condensed Consolidated Financial Statements.
|
||
101.INS
|
*
|
|
101.SCH
|
*
|
|
101.CAL
|
*
|
|
101.DEF
|
*
|
|
101.LAB
|
*
|
|
101.PRE
|
*
|
|
*
|
Filed Within
|
|