hibb-20221029

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 29, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________________ to __________________________

COMMISSION FILE NUMBER: 000-20969

HIBBETT, INC.

(Exact name of registrant as specified in its charter)


Delaware						20-8159608
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2700 Milan Court, Birmingham, Alabama 35211

(Address of principal executive offices, including zip code)

205-942-4292

(Registrant’s telephone number, including area code)

NONE

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 Par Value Per Share	HIBB	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Shares of common stock, par value $0.01 per share, outstanding as of December 1, 2022, were 12,727,625 shares.

HIBBETT, INC.

INDEX


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements.

	Unaudited Condensed Consolidated Balance Sheets	2

	Unaudited Condensed Consolidated Statements of Operations	3

	Unaudited Condensed Consolidated Statements of Cash Flows	4

	Unaudited Condensed Consolidated Statements of Stockholders’ Investment	5

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	13

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	21

Item 4.	Controls and Procedures.	21

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings.	22

Item 1A.	Risk Factors.	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	22

Item 6.	Exhibits.	23

	Signature	24

Index

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

HIBBETT, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)


ASSETS	October 29, 2022		January 29, 2022		October 30, 2021
Current assets:
Cash and cash equivalents	$	25,114	$	17,054	$	29,749
Receivables, net	15,170		13,607		13,349
Inventories, net	404,819		221,219		258,839
Other current assets	29,577		25,134		22,401
Total current assets	474,680		277,014		324,338

Property and equipment, net	165,196		145,967		127,715
Operating right-of-use assets	266,402		243,751		232,847
Finance right-of-use assets, net	2,027		2,186		2,137

Tradename intangible asset	23,500		23,500		23,500
Deferred income taxes, net	2,484		7,187		11,188
Other assets, net	3,081		3,612		3,517
Total assets	$	937,370	$	703,217	$	725,242

LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable	$	209,194	$	85,647	$	116,234
Operating lease obligations	71,649		68,521		61,643
Credit facility	51,657		—		—
Finance lease obligations	1,057		975		861
Accrued payroll expenses	11,550		26,320		18,805
Other accrued expenses	16,820		13,401		15,009
Total current liabilities	361,927		194,864		212,552
Operating lease obligations	233,504		212,349		202,568
Finance lease obligations	1,143		1,427		1,505
Unrecognized tax benefits	357		546		631
Other liabilities	2,605		2,516		2,501
Total liabilities	599,536		411,702		419,757

Stockholders' investment:

Common stock, 39,847,656, 39,611,163 and 39,587,012 shares issued, respectively	398		396		396
Paid-in capital	209,659		202,729		201,370
Retained earnings	1,102,243		1,022,317		1,008,066
Treasury stock, at cost; 27,161,181, 26,317,947 and 25,900,206 shares repurchased, respectively	(974,466)		(933,927)		(904,347)
Total stockholders' investment	337,834		291,515		305,485
Total liabilities and stockholders' investment	$	937,370	$	703,217	$	725,242

See notes to unaudited condensed consolidated financial statements.

Index

HIBBETT, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share information)


	13-Weeks Ended								39-Weeks Ended
	October 29, 2022				October 30, 2021				October 29, 2022				October 30, 2021
			% to Sales				% to Sales				% to Sales				% to Sales
Net sales	$	433,164			$	381,719			$	1,250,021			$	1,307,837
Cost of goods sold	284,434		65.7	%	243,023		63.7	%	809,306		64.7	%	796,028		60.9	%
Gross margin	148,730		34.3	%	138,696		36.3	%	440,715		35.3	%	511,809		39.1	%
Store operating, selling and administrative expenses	103,510		23.9	%	96,324		25.2	%	290,520		23.2	%	281,328		21.5	%

Depreciation and amortization	11,019		2.5	%	8,959		2.3	%	32,463		2.6	%	25,418		1.9	%
Operating income	34,201		7.9	%	33,413		8.8	%	117,732		9.4	%	205,063		15.7	%
Interest expense, net	467		0.1	%	64		—	%	900		0.1	%	191		—	%
Income before provision for income taxes	33,734		7.8	%	33,349		8.7	%	116,832		9.3	%	204,872		15.7	%
Provision for income taxes	8,161		1.9	%	8,157		2.1	%	27,199		2.2	%	48,218		3.7	%
Net income	$	25,573	5.9	%	$	25,192	6.6	%	$	89,633	7.2	%	$	156,654	12.0	%

Basic earnings per share	$	1.99			$	1.75			$	6.89			$	10.13
Diluted earnings per share	$	1.94			$	1.68			$	6.71			$	9.74

Weighted-average shares:
Basic	12,837				14,362				13,004				15,460
Diluted	13,202				14,975				13,358				16,082

Percentages may not foot due to rounding.

See notes to unaudited condensed consolidated financial statements.

Index

HIBBETT, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)


	39-Weeks Ended
	October 29, 2022		October 30, 2021
Cash Flows From Operating Activities:
Net income	$	89,633	$	156,654
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,463		25,418
Stock-based compensation	5,407		4,373
Impairment charges	346		2,508
Contingent earnout, net	—		(13,761)
Other non-cash adjustments	4,682		2,141
Changes in operating assets and liabilities:
Inventories, net	(183,600)		(56,801)
Receivables, net	(1,510)		(1,527)
Accounts payable	119,760		6,270
Income tax payable, net	2,697		(1,259)
Other assets and liabilities	(17,478)		(12,028)
Net cash provided by operating activities	52,400		111,988

Cash Flows From Investing Activities:
Capital expenditures	(47,463)		(43,894)
Other, net	938		913
Net cash used in investing activities	(46,525)		(42,981)

Cash Flows From Financing Activities:
Proceeds under credit facilities	688,665		—
Repayments under credit facilities	(637,008)		—
Stock repurchases	(38,458)		(238,327)
Cash used for contingent earnout	—		(1,239)
Cash dividends paid to stockholders	(9,699)		(7,533)
Payments of finance lease obligations	(759)		(736)
Proceeds from options exercised and purchase of shares under the employee stock purchase plan	1,525		2,465
Other, net	(2,081)		(3,178)
Net cash provided by (used in) financing activities	2,185		(248,548)

Net increase (decrease) in cash and cash equivalents	8,060		(179,541)
Cash and cash equivalents, beginning of period	17,054		209,290
Cash and cash equivalents, end of period	$	25,114	$	29,749

See notes to unaudited condensed consolidated financial statements.

Index

HIBBETT, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Stockholders' Investment

(in thousands)


13-Weeks Ended October 29, 2022
	Common Stock							Treasury Stock
	Shares	Amount		Paid-In Capital		Retained Earnings		Shares	Amount		Total Stockholders' Investment
Balance - July 30, 2022	39,830	$	398	$	207,678	$	1,079,872	27,000	$	(965,405)	$	322,543
Net income	—	—		—		25,573		—	—		25,573
Issuance of shares through the Company's equity plans	18	—		617		—		—	—		617
Purchase of shares under the stock repurchase program	—	—		—		—

SEC Form 10-Q filed by Hibbett Inc.