Hibbett Sports, Inc. (NASDAQ:HIBB) Q3 2018 Earnings Conference Call Transcript
Nov 17, 2017 • 10:00 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the Hibbett Sports Third Quarter Fiscal 2018 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded, Friday, November 17, 2017.
I would now like to turn the conference over to Pat Watson, Corporate Communications. Please go ahead, sir.
Thank you for joining Hibbett Sports to review the Company's financial and operating results for the third quarter and first nine months of fiscal year 2018, which ended on October 28, 2017.
(Forward-Looking Cautionary Statements)
Lastly, I would like to point out that management's remarks during this conference call are based on information and understandings believed accurate as of today's date, November 17, 2017. Because of the time-sensitive nature of this information, it is the policy of Hibbett Sports to limit the archived replay of this conference call webcast to a period of 30 days.
I'd now like to turn the call over to Jeff Rosenthal, CEO. Please go ahead, Jeff.
Thank you, and good morning, everyone. Welcome to the Hibbett Sports third quarter earnings call. I have with me this morning Scott Bowman, SVP and CFO; Jared Briskin, SVP, Chief Merchant; and Cathy Pryor, SVP of Store Operations. We were quite pleased with the results for the quarter which were driven by significant improvement in footwear and branded apparel, along with a strong launch of our e-commerce business.
Our e-commerce sales consistently exceeded our expectations, which we believe was driven by our comprehensive marketing plan upon launch. Ongoing marketing initiatives to-date gained traffic and increased loyalty members and the strength of our site navigation and product assortment. Due to these efforts, our e-commerce sales were approximately 5% of our total sales for the quarter. We are speaking to our customers more frequently than ever. The acquisitions of new customers and the re-engagement of existing customers remain critical to our success.
Rewards have jumped from 46% last year to 57% of total sales this year. Revenue from reward members increased 24% year-over-year, and those customers we had 19% more transactions. In the last 90 days, we have had a 25% increase year-over-year in the number of people joining the program versus a negative 10% before we relaunched the program. We have also improved our conversion rates with our Save the Sale program by helping our customers, find a size from any store at any time. Our store associates have done an outstanding job helping us execute all new systems and embrace our new omni-channel capabilities.
For the quarter, Hibbett opened 13 new stores, expanded one high-performing store, closed 11 underperforming stores, bringing the store base to 1,082 in 35 states as of October 28, 2017. As we look forward, we will continue to see a difficult retail environment but are encouraged with our progress on key initiatives to drive our e-commerce business and improve our assortments and rationalize our store base.