Hibbett Sports (HIBB) Friday lifted its full-year earnings outlook, and announced a new stock buyback program.
The company lifted its guidance for the 52 weeks ending January 30, 2016, to earnings per share in the range of $2.87 to $2.94 from a previously reported range of $2.80 to $2.90. Analysts look for earnings of $2.84 per share.
Comparable store sales are expected to be close to flat for the year, which compares to previous guidance of flat to a low single-digit increase.
Jeff Rosenthal, CEO, said, "We were very pleased with our back-to-school sales, our margin performance and expense controls, and are encouraged by the great progress we are making with our merchandising initiatives... Looking forward, we believe that our ongoing improvements in merchandise strategies, execution and replenishment capabilities have us well-positioned for the holiday season."
Further, on November 19, the Board of Directors of the company authorized a new Stock Repurchase Program of $300 million expiring on February 2, 2019. Effective immediately, the new program replaces the existing authorization that was due to expire on January 30, 2016.
For the third quarter, net income rose to $18.7 million from $16.9 million for the 13-week period ended November 1, 2014. Earnings per share advanced to $0.79 from $0.67. The impact of the favorable legal settlement contributed $0.05 per share to the just concluded quarter.
On average, 19 analysts polled by Thomson Reuters expected earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the 13-week period ended October 31, 2015, grew 4.6 percent to $228.3 million from $218.3 million for the 13-week period ended November 1, 2014. Comparable store sales for the third quarter increased 0.6 percent. Analysts expected revenues of $233.35 million.
According to the company, sales softened late in the quarter due to significant declines in colder weather categories, although footwear remained strong due to benefits from a strong assortment and an improved in-stock position.
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