Hibbett Sports, Inc. (NASDAQ:HIBB) Q3 2020 Earnings Conference Call - Final Transcript

Nov 22, 2019 • 10:00 am ET

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Hibbett Sports, Inc. (NASDAQ:HIBB) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Hibbett Sports Third Quarter 2020 Earnings 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 22, 2019.

I would now like to turn the conference over to Jason Fructil [Phonetic] Director of Finance and Investor Relations. Please go ahead.

Executive
Jason Fructil

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 2020, which ended on November 2, 2019.

Before we begin, I would like to remind everyone that management's comments during this conference call, which are 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 this morning and the Company's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. We refer you to those 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, November 22, 2019. Because of these 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 Scott Humphrey, our Interim Chief Financial Officer.

Executive
Scott R. Humphrey

Thanks, Jason, and good morning everyone. Welcome to the Hibbett Sports fiscal 2020 third quarter earnings call. 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 the prepared remarks on the third 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 third quarter, total net sales increased 27% to $275.5 million and overall comp sales increased 10.7% compared to last year's third quarter of 0.1%. This was our 4th consecutive quarter of positive comparable