Hibbett Sports Inc., an athletic specialty retailer, has announced its financial results for the fourth quarter ended January 28, 2017. The company’s net sales surged 0.5 per cent to US $ 246.9 million compared to US $ 245.7 million in the corresponding period last year.
During the period under review, gross profit was 33 per cent compared with 34.8 per cent in the corresponding period last year. The decrease was mainly due to markdowns taken to reduce inventory, a negative effect of product mix due to higher footwear sales, and de-leverage of logistics and store occupancy expenses associated with lower comparable store sales.
Net income for the same was US $ 12.1 million compared to US $ 17.4 million for the fourth quarter ended January 30, 2016.
Net sales for the full year ended January 28, 2017, increased 3.2 per cent to US $ 973.0 million compared with US $ 943.1 million in the corresponding period last year. Net income for the 52-week period was US $ 61.1 million compared with US $ 70.5 million for the 52-week period ended January 30, 2016. For the year, Hibbett opened 65 new stores, expanded 8 high performing stores and closed 31 underperforming stores, bringing the store base to 1,078 in 35 states as of January 28, 2017.
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Commenting on the results, Jeff Rosenthal, President and Chief Executive Officer, stated, “Results did not meet our expectations for the quarter, although we were pleased with continued strength in our footwear business. The decline in comparable store sales was driven mainly by softer sales in apparel and equipment. Licensed products accounted for much of the weakness in apparel, while equipment was negatively impacted by weakness in team sports, fitness and accessories.”
Rosenthal also expressed happiness over progress on major initiatives taken by the company. The brand’s store-to-home capability is scheduled to begin rollout in the first quarter of this year, which will enable them to use their entire chain to locate an item and send it directly to the customer’s home.
The company’s e-commerce site is also expected to be re-launched in the back half of Fiscal 2018, which will be fully integrated with its stores and include an enriched customer loyalty programme. Once implemented, these initiatives will provide an outstanding customer experience, and will position it well to drive long-term growth and shareholder value.
