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Hibbett Sports Inc. Reports Operating Results (10-Q)

December 04, 2012 | About:
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10qk

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Hibbett Sports Inc. (HIBB) filed Quarterly Report for the period ended 2012-10-27.

Hibbett Sports Inc has a market cap of $1.41 billion; its shares were traded at around $53.5 with a P/E ratio of 20.8 and P/S ratio of 1.9. Hibbett Sports Inc had an annual average earning growth of 16.4% over the past 10 years. GuruFocus rated Hibbett Sports Inc the business predictability rank of 4-star.

Highlight of Business Operations:

Store operating, selling and administrative expenses. Store operating, selling and administrative expenses were $41.9 million, or 20.7% of net sales, for the thirteen weeks ended October 27, 2012, compared to $39.5 million, or 21.3% of net sales, for the comparable period a year ago. We closely monitor and carefully manage these costs. For the third quarter:

Depreciation and amortization. Depreciation and amortization as a percentage of net sales was 1.6% in the thirteen weeks ended October 27, 2012, compared to 1.8% for the comparable period a year ago. The decrease in depreciation expense as a percentage of net sales was due to a decrease in the overall investment in leasehold improvements in recent years as more of the build-out work is being done by landlords, offset somewhat by changes in estimates of useful lives of leasehold improvements in some underperforming stores.

Store operating, selling and administrative expenses. Store operating, selling and administrative expenses were $125.7 million, or 20.9% of net sales, for the thirty-nine weeks ended October 27, 2012, compared to $115.9 million, or 21.4% of net sales, for the comparable period a year ago. We closely monitor and manage these costs. For the thirty-nine week period:

Depreciation and amortization. Depreciation and amortization as a percentage of net sales was 1.6% in the thirty-nine weeks ended October 27, 2012, compared to 1.8% for the comparable period a year ago. The decrease was due to a reduction in the overall investment in leasehold improvements in recent years as more of the build-out work is being done by landlords, offset somewhat by changes in estimates of useful lives of leasehold improvements in some underperforming stores.

Net cash provided by operating activities was $68.2 million for the thirty-nine weeks ended October 27, 2012 compared with net cash provided by operating activities of $41.5 million for the thirty-nine weeks ended October 29, 2011. Net income provided $53.2 million in cash and accounts payable provided $15.1 million. The largest use of cash during the period was an increase in inventories of $12.2 million. At October 27, 2012, the inventory level on a per store basis increased 1.0% while total inventory increased 5.1% compared to October 29, 2011 due to planned stock levels in preparation for holiday sales. Non-cash charges included depreciation and amortization expense and stock-based compensation expense.

Read the The complete Report

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10qk
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