Upcoming AWS Coverage on DICK’S Sporting Goods Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 24, 2017 / Active Wall St. announces its post-earnings coverage on Hibbett Sports, Inc. (NASDAQ: HIBB). The Company released its financial results for its fourth quarter and fiscal year 2017 on March 10, 2017. The athletic specialty retailer’s sales increased 0.5% and it also provided FY18 outlook. Register with us now for your free membership at:
One of Hibbett Sports’ competitors within the Sporting Goods Stores space, DICK’S Sporting Goods, Inc. (NYSE: DKS), reported on March 07, 2017, its earnings results for the fourth quarter and full year ended January 28, 2017. AWS will be initiating a research report on DICK’S Sporting Goods in the coming days.
Today, AWS is promoting its earnings coverage on HIBB; touching on DKS. Get our free coverage by signing up to:
For the 13-week period ended January 28, 2017, Hibbett’s net sales increased 0.5% to $ 246.9 million compared with $ 245.7 million for the 13-week period ended January 30, 2016. The Company’s revenue numbers was slightly below analysts’ consensus estimates of $ 247 million. Hibbett’s comparable store sales decreased 2.2%. The Company stated that apparel and equipment both experienced declines in comparable store sales, while footwear continued to show stronger sales with a mid-single digit increase.
For Q4 FY17, Hibbett’s gross profit was 33.0% of net sales compared with 34.8% for Q4 FY16. The decrease was mainly due to markdowns taken to reduce inventory, a negative effect of product mix due to higher footwear sales, and de-leverage of logistics and store occupancy expenses associated with lower comparable store sales.
Hibbett’s store operating, selling, and administrative expenses were 23.2% of net sales for Q4 FY17 compared with 21.8% of net sales for Q4 FY17. The increase was mainly due to de-leverage associated with lower comparable store sales and continued investments in the Company’s omni-channel initiative.
For Q4 FY17, Hibbett’s net income totaled $ 12.1 million compared with $ 17.4 million for Q4 FY16. The Company’s earnings per diluted share were $ 0.54 for the reported quarter, compared with $ 0.76 for the year earlier period. Hibbett’s earnings numbers met market estimates of $ 0.54 per share.
Fiscal 2017 Results
For the 52-week period ended January 28, 2017, Hibbett’s net sales increased 3.2% to $ 973.0 million compared with $ 943.1 million for the 52-week period ended January 30, 2016. Comparable store sales increased 0.2%. The Company’s gross profit was 34.8% of net sales for the reported quarter compared with 35.3% for the prior year’s same period.
Hibbett’s net income for Q4 FY17 was $ 61.1 million compared with $ 70.5 million for Q4 FY16. The Company’s earnings per diluted share were $ 2.72 for the reported quarter compared with $ 2.92 for the year ago comparable period.
For the year, Hibbett opened 65 new stores, expanded 8 high-performing stores and closed 31 underperforming stores, bringing the store base to 1,078 in 35 states as of January 28, 2017.
Liquidity and Stock Repurchases
Hibbett ended Q4 FY17 with $ 39.0 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 reported quarter, the Company repurchased 324,200 shares of common stock for a total expenditure of $ 11.4 million. Approximately $ 257.9 million of the total authorization remained for future stock repurchases as of January 28, 2017.
Fiscal 2018 Outlook
For FY18, which will have 53 weeks versus 52 weeks in FY17, Hibbett is forecasting earnings per diluted share in the range of $ 2.65 to $ 2.85, including an increase of approximately $ 0.09 to $ 0.11 per diluted share due to the 53rd week. The Company is expecting a negative impact of $ 0.03 to $ 0.04 per diluted share due to its omni-channel initiative. Hibbett is forecasting an increase in comparable store sales in the low-single digit range. The Company is expecting approximately 50 to 60 new store openings with approximately 25 to 35 store closures. Hibbett is estimating capital expenditures of approximately $ 25 million to $ 30 million and share buyback of approximately $ 45 million to $ 55 million for the year.
At the close of trading session on Thursday, March 23, 2017, Hibbett Sports’ stock price slightly fell 0.17% to end the day at $ 28.70. A total volume of 275.38 thousand shares were exchanged during the session. The stock currently has a market cap of $ 630.25 million and is trading at a PE ratio of 10.59.
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SOURCE: Active Wall Street