Hibbett Sports Inc HIBB
Q2 2011 Earnings Call Transcript

Transcript Call Date 08/20/2010

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Hibbitt Second Quarter 2011 Conference Call. During this presentation all participants are in a listen-only mode. Afterwards we will conduct a question-and-answer session. As a reminder, this conference is being recorded on Friday, August 20, 2010.

At this time for opening remarks and introductions I would like to introduce Mr. Mickey Newsome, Executive Chairman. Please go ahead, sir.

Michael J. Newsome - Executive Chairman: Thank you, operator. With us also is our CEO and President, Jeff Rosenthal; our Senior VP of Finance, Gary Smith; our Senior VP of Store Operations, Cathy Pryor; and our Senior VP of Merchandising Marketing, Becky Jones. We will all be available for the questions.

We appreciate you being on the conference call today. We appreciate your interest in Hibbett Sporting Goods, but before we start, Gary Smith will cover the safe harbor language.

Gary A. Smith - VP, Principal Accounting Officer and CFO: In order for us to take advantage of safe harbor rules, I would like to remind you that any projections of statements made today reflect our current views with respect to future events and our financial performance. There is no assurance that such events will occur or that any projections will be achieved. Our actual results could differ materially from any projections due to various risk factors which are described from time to time in our periodic reports with the SEC.

Michael J. Newsome - Executive Chairman: Now our President and CEO, Jeff Rosenthal will speak with you.

Jeffry O. Rosenthal - President and CEO: Good morning. As you know from our press release this morning our second quarter's earnings per share was $0.14 versus $0.04 a year ago, a 257% improvement. Overall sales for the quarter increased 15.5%, and same store sales were up 11.9%.

For the quarter by month, May was up 12.8%, June was up 13.3%, and July was up 9.5%. The momentum in July shifted into our third quarter because of Georgia did not have a tax free this year versus last year. The first 19 days of August, we are positive low double digits. We are encouraged by those results and the trend. The majority of our back-to-school is already over, and August is the biggest month of the third quarter.

Number of items per transaction are up and our average dollar per transactions are up, but our average price per item is slightly down. We are definitely getting more traffic in our stores.

From a real estate perspective, we opened 10 new stores and closed three, bringing the store base to 774 stores in 25 states. We plan to open at least 30 new stores, and expand approximately 20 high performing stores. We intend to close approximately 10 to 15 underperforming stores which is permitted by the terms of our leases for those stores, which will make us even more profitable. We still have identified 350 to 400 additional small markets in our 25 state area that we can open stores in, and we can grow to over 1,200 stores minimally in the same 25 state area.

Areas of business apparel, footwear, and equipment. Activewear was up double digits, led by women's and girls activewear, key brands were Nike and Under Armour, and all genders of activewear were up. License was up double digits, with both college and pro performing well, which is a good start and a good trend going into the important college football season and the NFL.

Read our Earnings Call Transcript disclaimer.
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