Hibbett Sports Inc. (HIBB), a leading sporting goods company in the U.S., reported fourth quarter fiscal 2010 earnings of $11.8 million or $0.40 per share, compared to $7.6 million or $0.26 in the year-ago quarter. The quarterly earnings surpassed the Zacks Consensus Estimate of $0.31.
For fiscal 2010, the company reported a net income of $32.5 million or $1.12 per share compared to $29.4 million or $1.02 in the previous fiscal. The earnings came in ahead of the fiscal Zacks Consensus Estimate of $1.03.
The strong results were primarily due to a 12.8% growth in net sales during the quarter to $166.8 million from $147.9 million in the year-ago period. Same-store sales also increased 9.6% year-over-year. For fiscal 2010, Hibbett reported net sales of $593.5 million compared to $564.2 million in the previous fiscal, while same-store sales increased marginally by 0.7%.
Hibbett’s gross profit improved to $57.1 million during the quarter from $48.6 million in the year-earlier quarter. For fiscal 2010, gross profit increased to $196.2 million from $185.4 million in the previous fiscal. Operating income during the quarter increased to $19.0 million from $12.7 million in the year-earlier quarter. For fiscal 2010, operating income was $52.4 million versus $48.0 million in fiscal 2009.
Hibbett ended fiscal 2010 with cash and cash equivalents of $49.7 million and full availability under its $80 million unsecured credit facilities, compared to $20.7 million of cash and cash equivalents in the year-ago period. The company had no outstanding debt at fiscal year end 2010.
Bolstered by the strong operating performance during the quarter, Hibbett now expects earnings for fiscal 2011 in the range of $1.12 to $1.30 per share, with a same-store sales increase of 1.0% to 4.0%. The company anticipates opening 30 new stores during fiscal 2011, expanding 20 high performing stores and closing about 10-15 underperforming stores.
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