Hibbett Sports Inc. (HIBB), scheduled to report its earnings for the fourth quarter and fiscal 2011 on March 11, 2011, declared preliminary sales figures and guidance for the quarter and fiscal year.
The company reported same-store sales increase of 1.3% for the quarter, the positive outcome of which led to a top-line growth of 4% grossing $173.5 million as against $166.8 million in the year-ago period. For fiscal 2011, the company registered a same-store sales growth of 9.8% with top-line bounding at 12.1% to reach $665.3 million.
Hibbett admitted that in spite of the solid start to the final quarter, a deferment in income tax rapid refunds and bad weather in many of the company’s markets hampered sales in the later half of the quarter.
The company expects to earn 42 cents to 44 cents a share in the fourth quarter of fiscal 2011. For fiscal 2011, the company sees its earnings in the range of $1.58–$1.60 per share. The Zacks Consensus Estimate for the quarter and fiscal 2011 is currently pegged at 50 cents a share and $1.67 per share, respectively.
Hibbett remains focused on mid-sized and smaller markets as well as a strategic mix of branded and localized merchandise. It is geared toward expanding operating results and creating shareholder value. Additionally, the company’s wholly owned subsidiary, Hibbett Team Sales, is a leading supplier of customized athletic apparel, equipment and footwear to school, athletic and youth programs in Alabama.
The company operates in a highly fragmented specialty retail sector and faces intense competition from peers like Bed Bath & Beyond Inc. (BBBY) and Cost Plus Inc. (CPWM).
The company currently retains a short-term Zacks#3 Rank (‘Hold’) rating. We hold a long-term Outperform recommendation on Hibbett.
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