Hibbett Sports Inc. (HIBB, Financial) released its fiscal fourth-quarter 2021 earnings on March 5 before the market opened. The leading athletic fashion retailer said its earnings surpassed expectations and were up compared to the same quarter last year. However, revenue fell short of analysts' predictions.
Performance at a glance
The company's net profit for the quarter was $23.9 million, resulting in earnings per share of $1.39, up from a net profit of $6 million, or $0.34 per share, for the year-ago quarter. The company's adjusted earnings per share stood at $1.40, which was more than the $0.34 reported last year. Analysts had predicted adjusted EPS of $1.37.
Revenue of $376.8 million was up 20.4% year-over-year, but was below analyst predictions of $381 million. The quarter's revenue reflected persistent strength in the omni-channel, high new customer retention, market disturbance and availability of sought-after products like footwear, apparel and accessories.
CEO Mike Longo had the following to say:
"The strong momentum that we experienced in our business in the second and third quarters continued in the fourth quarter. Our ongoing ability to deliver a compelling assortment of merchandise through superior customer service and a best-in-class omni-channel platform generated outstanding fourth quarter performance in both sales and profitability and provided a strong conclusion to a record-setting Fiscal 2021."
Comparable store sales for the quarter ended Jan. 30 jumped by 21.9%. E-commerce sales jumped a mammoth 44.8% and made up 17.1% of the total net sales of the quarter. SG&A expenses were 26.8% of sales, which was flat as compared to the year-ago quarter as the Coronavirus-related costs were more than offset by an increase in net sales. Additionally, lower costs and integration expenses related to the City Gear acquisition helped.
The company's balance of cash and cash equivalents stood at $209.3 million at the quarter's end.
Inventory position and store details
At the end of the quarter, the company had inventory of $202 million, which reflected a decline of 29.9% from the fiscal fourth quarter of the previous year. This reflected efforts to manage strong brick and mortar and e-commerce demand.
During the quarter, the Alabama-based sporting goods retailer launched 10 new stores and rebranded four Hibbett stores to City Gear stores. Additionally, the company shut down as many as 21 stores, which included underperforming stores and stores meant for rebranding. As of Jan. 30, the company had a total of 1,067 stores in 35 U.S. states.
Looking ahead
Hibbett continues to witness heightened demand so far in the first quarter. The sporting goods retailer has managed to lure more customers to its omni-channel platform. The company is anticipating strong first quarter results given stellar transaction growth and mounting average ticket in-store as well as online so far in the quarter. Longo said:
"Following a record year, we believe the Hibbett and City Gear brands are positioned very well in the industry and the momentum we have created in Fiscal 2021 is sustainable. We will remain focused on providing attractive and differentiated customer experiences in stores and online."
The company has provided guidance for fiscal 2022. The company projects diluted EPS to be between $5.00 and $5.50 in comparison to fiscal 2021 and comparable sales to range in the negative low-single digits to positive low-single digits. Additionally, the company is planning capital spending of around $45 million to $50 million during the fiscal year.
Disclosure: I do not hold any positions in the stocks mentioned.
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