Hibbett Sports Inc. (NASDAQ: HIBB) stock gained by 3.18% at last close while the HIBB stock price kept rising in the pre-market session as well, by 7.71%. Hibbett is a large athletic-inspired fashion retailer based in Birmingham, Alabama, with 1,071 Hibbett Sports and City Gear specialized locations throughout 35 states. Hibbett has a long history of offering accessible locations, individualized customer service, and exclusive footwear, apparel, and equipment from major brands such as Nike, Jordan, and Adidas.
First Quarter 2021 Financial Results
Today, Hibbett Sports has released its first-quarter 2021 financial results. Given below is the summary:
- Net sales climbed 87.8% to $506.9 million for the 13-week period ending May 1, 2021, relative to $269.8 million for the 13-week period ending May 2, 2020. New customer acquisition and retention, previous year’s market disruption, government stimulus, the accessibility of in-demand merchandise, and greater store level interaction all contributed to increased traffic and revenue per transaction in the quarter, according to our estimates.
- For the 13 weeks ending May 1, 2021, the gross margin was 41.4 percent of net sales, up from 27.5 percent for the 13 weeks ending May 2, 2020.
- For the 13 weeks ending May 1, 2021, store operating, selling, and administrative (“SG&A”) expenditures were 18.1 percent of net sales, compared to 33.1 percent for the 13 weeks ending May 2, 2020. This decrease was due to the leverage attained from solid sales productivity, as well as having low costs in the current year linked with City Gear acquiring and integration activities, as well as cycling the pandemic-related impairment and appraisal charges recorded in the first quarter of the previous year.
- Net income was $84.8 million, or $5.00 per diluted share, for the 13-week period ended May 1, 2021, relative to a net loss of $15.3 million, or $0.92 per share, for the 13-week period ended May 2, 2020.
- HIBB launched six new shops during the quarter and eliminated two underperforming sites, bringing the total number of locations to 1,071 in 35 states as of May 1, 2021.
- On HIBB’s unaudited condensed consolidated financial sheet at the end of the first quarter of Fiscal 2022, they had $270.9 million in available cash and cash equivalents. HIBB has no outstanding debt and full capacity under their $75.0 million secured credit facility as of May 1, 2021.
Hibbett Sports, an athletic-inspired clothing store, has announced that their 2015 Stock Repurchase Program would be expanded. Hibbett Sports’ Board of Directors approved the expansion of its current Program by $500.0 million to a total of $800.0 million on May 26, 2021, as well as the extension of the Program until February 1, 2025.