Hibbett earnings shoot up in Q2

BIRMINGHAM, Ala. — Hibbett Sports raised its outlook and remains confident in its strategy after reporting a near 43% spike in earnings per diluted share.

The company reported an impressive 42.9% growth in second-quarter earnings per diluted share to 30 cents from 21 cents for the same period last year. Net income increased 32.9% to $7.9 million from $5.9 million in the comparable-year period.

The retailer reported a net sales increase of 8% to $165.4 million compared with $153.1 million for the same period last year. Comparable-store sales increased 4.8%.

Jeff Rosenthal, President and Chief Executive Officer, stated, “Our outlook for fiscal 2013 continues to indicate solid earnings growth driven by positive sales trends and margin improvement. Based on our strong first half results, we are raising full year earnings estimates. Our small market strategy of bringing premium branded products to underserved markets continues to drive results.”

For the quarter, Hibbett opened seven new stores, expanded three high-performing stores and closed five underperforming stores, bringing the store base to 837 in 26 states as of July 28.

The company increased its earnings guidance for fiscal 2013 to a range of $2.57 to $2.67 per diluted share and a mid single-digit comparable-store sales increase. For fiscal 2013, the company expects to open 55 to 60 new stores, expand approximately 15 high performing stores and close up to 18 underperforming stores.