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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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from Sam Poser with Susquehanna. You may proceed with your question.

Analyst
Sam Poser

Good morning. Thank you for taking my questions. I just have a question on the guide -- I have a question on the guidance. It looks as if -- can you give us some idea of how you're thinking about the store versus e-commerce in the fourth quarter, I guess, number one? And then I have follow-up.

Executive
Scott R. Humphrey

Yeah, I think we're continuing to see growth in e-com and have some exciting initiatives planned for the fourth quarter. So I think planning on it continuing to be a big part of our growth story.

Analyst
Sam Poser

Understood. But I mean, do you expect the stores to be positive...

Executive
Scott R. Humphrey

Yes.

Analyst
Sam Poser

In Q4 as they were in Q3?

Executive
Scott R. Humphrey

Yes.

Executive
Jared S. Briskin

Yes.

Analyst
Sam Poser

And then, so if we -- so just making -- taking the balance and the growth prospects here, it looks as if you could come in towards the low end of the increased same-store sales guidance and still reach close, if not beyond, to the top end of your EPS guidance based on the ranges that you provided of gross margin and SG&A. Am I thinking about that wrong?

Executive
Scott R. Humphrey

No. I think that's fair. I think we've taken a conservative view on EPS guidance. The fourth quarter is going to be a little volatile, certainly different than last year with the holiday schedule and the launch schedule. And so, we wanted to add a little conservatism to our outlook.

Analyst
Sam Poser

Thank you. And then Jared, how much has the -- how does the launch calendar for you compared to last year and how well positioned is City Gear now with the new products from key vendors that may have not been treating them as well prior to your acquisition? And sort of what are the expectations coming out of City Gear for the balance of the year?

Executive
Jared S. Briskin

Yes, Sam. The volatility that Scott referenced on the launches is really more date changes focused really along with the Thanksgiving shift. We certainly had some really, really strong results during the third quarter and we feel like we're positioned really well when it comes to access the product along with allocations for both banners. Certainly a lot of work has been done to reinforce City Gear's positioning and we feel like we have a very strong plan for Q4.

Analyst
Sam Poser

All right. I'll line up [Phonetic] on again. Thanks so much. Have a -- and congratulations.

Executive
Scott R. Humphrey

Thanks.

Executive
Jared S. Briskin

Thank you.

Operator
Operator

Our next question comes from Peter Benedict. You may proceed with your questions.

Analyst
Peter Benedict

Yeah. Hey, guys. First question. Just around the gross margin, can you maybe dive a little deeper and help us understand maybe how product margins performed in 3Q, and how you're thinking about the product margin change within that fourth quarter guidance? That's my first question.

Executive
Scott R. Humphrey

Yeah, so in Q3, strong product margin on the store side brought down a little bit by the increase in e-commerce sales. E-commerce