Hibbett Sports, Inc. (NASDAQ:HIBB) Q2 2020 Earnings Conference Call - Final Transcript

Aug 23, 2019 • 10:00 am ET


Hibbett Sports, Inc. (NASDAQ:HIBB) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings, and thank you for standing by. Welcome to the Hibbett Sports' Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, Friday, August 23rd, 2019.

I would now like to turn the conference over to Jack Drapacz with Corporate Communications. Please go ahead.

Jack Drapacz

Thank you for joining Hibbett Sports to review the Company's financial and operating results for the second quarter and first half of fiscal year 2020, which ended on August 3rd, 2019. Before we begin, I would like to remind everyone that management's comments during this conference call not based on historical facts, including those in response to your questions are forward-looking statements. These statements, which reflect the Company's current views with respect to future events and financial performance, are made in reliance on the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to uncertainties and risks. It should be noted that the Company's future results may differ materially from those anticipated and discussed in the forward-looking statements.

Some of the factors that could cause or contribute to such differences have been described in the news release issued earlier this morning, in the Company's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. We refer you to these sources for more information.

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, August 23rd, 2019, 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 Christine Skold, Interim Chief Financial Officer. Please go ahead, Christine.

Christine E. Skold

Thanks, Jack, and good morning, everyone. Welcome to the Hibbett Sports fiscal 2020 second quarter earnings call. And today we have with us Jeff Rosenthal, President and CEO; Jared Briskin, Senior VP and Chief Merchant; and Cathy Pryor, Senior VP of Store Operations. I'll start today's call with prepared remarks on the second quarter, followed by Jared with the review of merchandising and then Jeff will cover highlights from the quarter along with the general business update. As a reminder, we treat City Gear as an extension of the Hibbett business and the results will be reported on a combined basis. As such it's not our intent to provide specific gross margin, expense or other profitability metrics for the City Gear business. However, I will provide actual revenue for City Gear until it is incorporated into consolidated comp sales starting in the fourth quarter of this year.

For the second quarter, total net sales increased 19.6% to $252.4 million and overall comp sales increased 0.3% compared to last year's second quarter of 4.1% achieving our third consecutive quarter of positive comparable sales. Year-to-date comparable sales increased 3.1%. Net sales includes $42.1 million for City Gear and e-commerce