Hibbett Sports Q1 Earnings Meet Estimates, Comps Up 4.1%; Backs FY15 View

(RTTNews) - Sporting goods retailer Hibbett Sports, Inc. (HIBB) Friday reported a higher first-quarter profit, as sales grew about 9 percent driven by strong demand in its core footwear and brand focused apparel businesses, as well as opening of new stores. Comparable store sales increased 4.1 percent.

Earnings per share matched analysts' expectations, while revenues came below view. The company also said it is confident of achieving financial and operational goals for fiscal 2015 and beyond, and backed its fiscal 2015 outlook.

Net income for the first quarter ended May 3, 2014 increased to $28.39 million or $1.09 per share from $26.21 million or $1.00 per share in the prior year.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 9.1 percent to $261.91 million from $239.99 million in the year-ago quarter. Comparable store sales increased 4.1 percent. Wall Street expected revenues of $263.69 million for the quarter.

The company said the increase in sales were driven by strong demand in its core footwear and brand focused apparel businesses. In addition, opening of a record number of new stores and fully converted operations to its new wholesale and logistics facility helped to boost sales.

Jeff Rosenthal, president and chief executive officer of the company said, "Looking forward, the continued success of new stores and the efficiencies of our new wholesale and logistics facility will be a catalyst for sustained, profitable growth for the company."

For fiscal 2015, the company still expects earnings per share to be in the range of $2.78 to $2.98. Analysts project annual earnings per share of $2.90.

Hibbett Sports continues to see an estimated $0.11 per share impact from additional costs related to the transition to new wholesale and logistics facility, ongoing operational costs after opening, and increased depreciation.

The company still projects to increase comparable store sales in the low-to-mid single digit range, and flat to slightly positive product gross margin rate.

During the first quarter, the firm repurchased 198,000 shares of common stock for a total expenditure of $10.8 million. At the end of the quarter, about $218.8 million of the Board repurchase authorization remained for future stock repurchases.

Hibbett Sports opened 16 new store in the first quarter of 2014, expanded 4 high performing stores and closed 4 underperforming stores, bringing the store base to 939 in 31 states as of May 3, 2014.

The firm still plans to open around 75 to 80 new stores, 10 to 15 expansions and 15 to 20 closures in fiscal 2015.

HIBB closed Thursday's regular trading at $57.11 on the Nasdaq.