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Hibbett's (HIBB) Q4 Earnings Surpass Estimates, Sales Up Y/Y
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Hibbett Sports Inc. (HIBB - Free Report) posted fourth-quarter fiscal 2021 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Further, both top and bottom lines improved year over year. Results gained from continued positive momentum, driven by enhanced omnichannel capabilities and robust demand, particularly for athletic apparel. Moreover, management noted that the company is well placed for growth ahead on the back of Hibbett and City Gear brands.
Q4 Highlights
Hibbett’s adjusted earnings came in at $1.40 per share, surging more than two-folds from 51 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of $1.36.
Net sales increased 20.4% year over year to $376.8 million in the quarter under review. The uptick can be attributed to strength in the omnichannel platform, new customer acquisitions, solid demand for footwear, apparel and accessories, and additional stimulus payments. E-commerce sales accounted for 17.1% of total sales in the fiscal fourth quarter. Moreover, digital sales surged 44.8%.
Apart from these, comparable store sales (comps) increased 21.9% in the quarter, driven by strength in the apparel and footwear categories across all genders.
Adjusted gross profit increased 42.6% to $139.7 million in the reported quarter. Moreover, adjusted gross margin expanded 580 basis points (bps) to 37.1%.
Adjusted operating income was $31.2 million, reflecting a significant improvement from $11.7 million in the prior-year quarter. Moreover, adjusted operating margin rose 460 bps to 8.3% in the quarter under review. Meanwhile, adjusted store operating, selling and administrative (SG&A) expenses expanded 140 bps to 26.7%, as a percentage of sales, driven by higher online sales, asset impairments and a rise in advertising costs.
Other Financials
Hibbett ended the quarter with $209.3 million in cash and cash equivalents and $75 million available under its credit facilities. Total stockholders’ investment, as of Jan 30, was $391 million.
Further, Hibbett did not repurchase any shares and has $136.3 million remaining under its authorization for share repurchase through Jan 29, 2022. Capital expenditures came in at $14 million during the reported quarter. Also, the metric is likely to be $45-$50 million for fiscal 2021.
Hibbett Sports, Inc. Price, Consensus and EPS Surprise
In fourth-quarter fiscal 2021, the company opened 10 stores but rebranded four Hibbett stores to City Gear. However, it shut 21 underperforming outlets. Hence, it ended the quarter with 1,067 stores across 35 states.
Looking Ahead
Driven by pent-up customer demand, gains from new customers, rising online sales, robust vendor relationships and strength in athletic footwear, apparel and accessories both in-store and online, management has issued GAAP guidance for fiscal 2022. Also, it doesn’t foresee any material difference between GAAP and non-GAPP figures.
The company expects comps to be down low-single to up low-single digit. Moreover, gross margin is anticipated to expand nearly 130-170 basis points, while SG&A expenses are likely to decline roughly 5-45 bps. The bottom line is expected to be $5-$5.5 per share.
Price Performance
In the past three months, this Zacks Rank #1 (Strong Buy) stock has rallied 24.9%, outperforming the industry’s 6.7% growth.
DICK’S Sporting Goods, Inc. (DKS - Free Report) has a long-term earnings growth rate of 5.6% and presently, a Zacks Rank #2 (Buy).
Tapestry (TPR - Free Report) , with a Zacks Rank #2, has an expected long-term earnings growth rate of 10%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Hibbett's (HIBB) Q4 Earnings Surpass Estimates, Sales Up Y/Y
Hibbett Sports Inc. (HIBB - Free Report) posted fourth-quarter fiscal 2021 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Further, both top and bottom lines improved year over year. Results gained from continued positive momentum, driven by enhanced omnichannel capabilities and robust demand, particularly for athletic apparel. Moreover, management noted that the company is well placed for growth ahead on the back of Hibbett and City Gear brands.
Q4 Highlights
Hibbett’s adjusted earnings came in at $1.40 per share, surging more than two-folds from 51 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of $1.36.
Net sales increased 20.4% year over year to $376.8 million in the quarter under review. The uptick can be attributed to strength in the omnichannel platform, new customer acquisitions, solid demand for footwear, apparel and accessories, and additional stimulus payments. E-commerce sales accounted for 17.1% of total sales in the fiscal fourth quarter. Moreover, digital sales surged 44.8%.
Apart from these, comparable store sales (comps) increased 21.9% in the quarter, driven by strength in the apparel and footwear categories across all genders.
Adjusted gross profit increased 42.6% to $139.7 million in the reported quarter. Moreover, adjusted gross margin expanded 580 basis points (bps) to 37.1%.
Adjusted operating income was $31.2 million, reflecting a significant improvement from $11.7 million in the prior-year quarter. Moreover, adjusted operating margin rose 460 bps to 8.3% in the quarter under review. Meanwhile, adjusted store operating, selling and administrative (SG&A) expenses expanded 140 bps to 26.7%, as a percentage of sales, driven by higher online sales, asset impairments and a rise in advertising costs.
Other Financials
Hibbett ended the quarter with $209.3 million in cash and cash equivalents and $75 million available under its credit facilities. Total stockholders’ investment, as of Jan 30, was $391 million.
Further, Hibbett did not repurchase any shares and has $136.3 million remaining under its authorization for share repurchase through Jan 29, 2022. Capital expenditures came in at $14 million during the reported quarter. Also, the metric is likely to be $45-$50 million for fiscal 2021.
Hibbett Sports, Inc. Price, Consensus and EPS Surprise
Hibbett Sports, Inc. price-consensus-eps-surprise-chart | Hibbett Sports, Inc. Quote
Store Update
In fourth-quarter fiscal 2021, the company opened 10 stores but rebranded four Hibbett stores to City Gear. However, it shut 21 underperforming outlets. Hence, it ended the quarter with 1,067 stores across 35 states.
Looking Ahead
Driven by pent-up customer demand, gains from new customers, rising online sales, robust vendor relationships and strength in athletic footwear, apparel and accessories both in-store and online, management has issued GAAP guidance for fiscal 2022. Also, it doesn’t foresee any material difference between GAAP and non-GAPP figures.
The company expects comps to be down low-single to up low-single digit. Moreover, gross margin is anticipated to expand nearly 130-170 basis points, while SG&A expenses are likely to decline roughly 5-45 bps. The bottom line is expected to be $5-$5.5 per share.
Price Performance
In the past three months, this Zacks Rank #1 (Strong Buy) stock has rallied 24.9%, outperforming the industry’s 6.7% growth.
Other Stocks in the Retail Space
Abercrombie & Fitch (ANF - Free Report) has a long-term earnings growth rate of 17.2% and currently, a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’S Sporting Goods, Inc. (DKS - Free Report) has a long-term earnings growth rate of 5.6% and presently, a Zacks Rank #2 (Buy).
Tapestry (TPR - Free Report) , with a Zacks Rank #2, has an expected long-term earnings growth rate of 10%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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