Hibbett provided financial results for its first quarter ended April 30, 2022.
Article continues below
Net sales for the 13-weeks ended April 30, 2022, decreased 16.3% to $424.1 million compared with $506.9 million for the 13-weeks ended May 1, 2021.
The prior year first quarter received a significant boost from stimulus funds that did not reoccur in the current period. Comparable sales decreased 18.9% versus the prior year but increased by 22.9% in relation to the first quarter of Fiscal 2020, the most relevant comparable period prior to the COVID-19 pandemic.
Brick and mortar comparable sales declined 22.0% while e-commerce sales increased 4.1% on a year-over-year basis. In relation to the first quarter of Fiscal 2020, brick and mortar comparable sales increased 13.6% and e-commerce sales grew 116.9% over a three-year period.
E-commerce represented 14.6% of total net sales for the 13-weeks ended April 30, 2022, compared to 11.7% in the 13-weeks ended May 1, 2021, and 8.3% of total net sales for the 13-week period ended May 4, 2019.
Gross margin was 37.0% of net sales for the 13-weeks ended April 30, 2022, compared with 41.4% of net sales for the 13-weeks ended May 1, 2021.
The approximate 440 basis point decline was driven by deleverage of store occupancy of approximately 160 basis points, higher average product cost of approximately 150 basis points and increased freight and transportation costs of approximately 130 basis points.
Store operating, selling and administrative (“SG&Aâ€) expenses were 22.5% of net sales for the 13-weeks ended April 30, 2022, compared with 18.1% of net sales for the 13-weeks ended May 1, 2021.
The approximate 440 basis point increase is primarily the result of deleverage from the year-over-year sales decline and increased costs associated with advertising, professional services and supplies necessary to support a larger store base and increased e-commerce volume.
Net income for the 13-weeks ended April 30, 2022, was $39.3 million, or $2.89 per diluted share, compared with net income of $84.8 million, or $5.00 per diluted share, for the 13-weeks ended May 1, 2021.
For the 13-weeks ended April 30, 2022, we opened nine net new stores, bringing the store base to 1,105 in 35 states.
As of April 30, 2022, we had $23.2 million of available cash and cash equivalents on our unaudited condensed consolidated balance sheet. As of April 30, 2022, we had $20.4 million of debt outstanding and $104.6 million available under our $125.0 million unsecured credit facility.
Inventory as of April 30, 2022, was $314.9 million, a 72.6% increase compared to the prior year first quarter and up 40.7% from the beginning of the quarter.
Capital expenditures during the 13-weeks ended April 30, 2022, were $16.0 million compared to $7.0 million in the 13-weeks ended May 1, 2021. Capital expenditures were predominantly related to store initiatives including new store openings, relocations, expansions, remodels and technology upgrades.
During the 13-weeks ended April 30, 2022, the Company repurchased 491,218 shares of common stock under the Stock Repurchase Program (the “Repurchase Programâ€) for a total expenditure of $22.4 million. The Company also paid a quarterly dividend equal to $0.25 per outstanding common share that resulted in a cash outlay of $3.3 million. ■