In the first quarter of this year, net sales increased 3% to $240 million. Comparable store sales increased 0.8%. Earnings increased 2% to $1.00 per share. Hibbett Sports, Inc. (NASDAQ:HIBB) opened nine new stores and expanded five high-performing stores. The company closed three under performing stores.
Going forward, Hibbett Sports, Inc. (NASDAQ:HIBB) plans to open 70 to 75 new stores this year and expand approximately 18 high-performing stores. The company also plans to close 15 to 20 under performing stores. The company’s goal is to grow to over 1,500 stores. To finance expansion, the company has $103.2 million in cash and no bank debt.
For this fiscal year, the company expects to earn $2.85 to $3.05 per share. This compares to $2.73 last year. Comparable store sales are expected to increase in the low to mid-single digit range. Hibbett Sports, Inc. (NASDAQ:HIBB) has approximately $244 million remaining on its share repurchase program for share repurchases.
A growing competitor
In the first quarter of this year, net sales increased to $246.3 million from $218.5 million in the same quarter last year. Same-store sales increased 10.5%. Gross profit increased to $80.5 million from $67.4 million. The gross profit margin increased as well, to 32.7% from 30.9%. Net income was $0.34 per share compared to $0.01 per share last year.
Going forward, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) anticipates opening 15 to 20 net new stores in 2013. Big 5 Sporting Goods Corporation (NASDAQ:BGFV) currently doesn’t have an e-commerce site and will launch a site in 2014. That will drive revenues and help it to catch up to the other sporting goods companies that do have an e-commerce presence. Startup expenses for the e-commerce site are expected to knock off $0.05 to $0.06 in earnings per share for 2013. In the upcoming quarter, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) expects same-store sales growth in the mid-single digit range. Earnings are expected to be $0.20 to $0.26 per share.
Foolish assessment
I think sporting goods is a great business to be in. These three companies have each built a great business and are primed for expansion. An investor couldn’t go wrong owning any one or all three.
Mark Yagalla has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Sporting Goods Is a Great Business to Be In originally appeared on Fool.com is written by Mark Yagalla.
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