Sporting goods retailer Hibbett Sports, Inc. (HIBB) reported Friday a profit for the fourth quarter that increased 22 percent from last year, driven by improved gross margins, lower expenses and sales growth. Earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the full-year 2014, in line with Street view.
The Birmingham, Alabama-based company reported net income of $19.36 million or $0.73 per share for the fourth quarter, higher than $15.82 million or $0.59 per share in the prior-year quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude one-time items.
The company noted that the additional week in the latest quarter added about $0.07 in earnings per share.
Net sales for the quarter increased 14.0 percent to $217.41 million from $190.68 million in the same quarter last year, and topped fourteen Wall Street analysts' consensus estimate of $216.90 million by a whisker.
Comparable store sales increase 4.9 percent, the company's thirteenth consecutive quarter of growth. Adjusted for week shift, comparable store sales increased only 4.4 percent.
Gross profit margin improved 30 basis points to 36.1 percent of net sales from last year, and store operating, selling and administrative expenses decreased 60 basis points to 20.3 percent of net sales from the year-ago quarter.
During the fourth quarter, Hibbett opened 27 new stores, closed two underperforming stores and expanded four high performing stores. This brings the company's total store base to 873 in 29 states at the end of the quarter.
"The holiday season was strong due to solid performance in footwear, apparel, and accessories. Fiscal 2013 results were accomplished by excellent assortments, great customer service, and outstanding support from our distribution team and supplier partners," President and CEO Jeff Rosenthal said in a statement.
For fiscal 2013, the company reported net income of $72.58 million or $2.72 per share, higher than $59.06 million or $2.15 per share in the prior year. Net sales for the full year grew 11.8 percent to $818.70 million from $732.65 million in the previous year. Comparable store sales increase 6.9 percent.
Analysts expected the company to report full-year 2014 earnings of $2.70 per share on annual revenues of $818.81 million.
Looking ahead to fiscal 2014, the retailer expects earnings in a range of $2.85 to $3.05 per share, on projected comparable store sales growth in the low to mid-single digit range. Street is looking for full-year 2014 earnings of $3.02 per share.
The company also expects to open 65 to 70 new stores, expand about 18 high performing stores and close 15 to 20 underperforming stores in 2014.
"Looking forward into Fiscal 2014, we are well positioned to continue our growth and are very excited about the investments being made in the business to ensure our future success," Rosenthal added.
HIBB closed Thursday's regular trading session at $53.63, up $1.41 on a volume of 0.59 million shares.
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