Hibbett Sports Q4 Results Miss Estimates, Sees FY15 Profit Below View

(RTTNews) - Sporting goods retailer Hibbett Sports Inc. (HIBB) reported Friday a decline in its fourth-quarter profit, reflecting margin pressure and the absence of an extra week that benefited last year's results. The decline was despite higher net sales and comparable store sales. Earnings per share and top line, came in below analysts' estimates. Looking ahead, the company projects fiscal 2015 earnings below view.

In pre-market activity, Hibbett shares dropped $1.65 or 2.85 percent further, and traded at $56.19.

For the 13-week quarter, net income was $16.87 million, lower than $19.36 million recorded in the 14-week quarter a year ago. Earnings per share were $0.64, compared to $0.73 last year. The company said the extra week in the last year added about $0.07 in earnings per share.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales edged up 0.2 percent to $217.77 million from $217.41 million a year ago. Thirteen analysts estimated revenues of $221.33 million for the quarter. Comparable store sales increased 1.7 percent on a calendar basis.

Gross margin was 35.8 percent, compared to 36.1 percent a year ago.

President and Chief Executive Officer Jeff Rosenthal stated, "We were very pleased with sales during the holiday season, although we experienced a significant slowdown in January due to significant weather-related store closures and a less favorable sales impact this year from the college football championship game. Sales trends improved significantly in February as weather patterns normalized, and we transitioned to our spring assortment."

For the year, Hibbett opened 72 new stores, expanded 14 high performing stores and closed 18 underperforming stores, bringing the store base to 927 in 31 states as of February 1.

Looking ahead for fiscal 2015, Hibbett said it expects earnings per share to be in the range of $2.78 to $2.98. Analysts project earnings per share of $3.05. The company also projects to increase comparable store sales in the low-to-mid single digit range, and flat to slightly positive product gross margin rate.

The company projects a $0.11 per share impact due to the transition to the new wholesaling and logistics facility in April/May, ongoing operational costs after opening, and increased depreciation.

Hibbett also sees about 75 to 80 new stores, 10 to 15 expansions and 15 to 20 closures.

Rosenthal added, "Looking ahead, we feel confident in our product offering, inventory levels and execution as we progress through this important season. We also continue to be encouraged by new store unit growth and sales, and look forward to delivering value on our key initiatives in Fiscal 2015."