Hibbett Sports, Inc. (NASDAQ:HIBB) Q2 2021 Earnings Conference Call - Final Transcript

Aug 28, 2020 • 10:00 am ET

Previous

Hibbett Sports, Inc. (NASDAQ:HIBB) Q2 2021 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from Alex Perry with Bank of America. Please proceed.

Analyst
Alex Perry

Hi. Thanks for taking my question and congrats on an exceptional quarter. Just first, you mentioned in the press release, you're strong vendor relationships should allow you to meet customer demand. Can you talk through more what you mean there? Are you getting better product allocations from your vendor partners on a year-over-year basis? And then since the brands, presumably have cut orders with their manufacturing partners, is inventory shortage with the high heat product not a concern in the back half? Thanks.

Executive
Michael E. Longo

Yes. So I won't get specific with regard to allocations. But our partners have been incredible in helping us manage the flow of inventory. Obviously with the results at the end of the quarter, we're selling it as fast as we get it. We've been able to work closely with our partners. Our team has done incredible job of making incremental buys for the back half of the year. Based on our expectations on our flow, as I said, our declines in inventory are going to moderate some, we will still be down, but we expect to be in a better inventory position throughout the back half than we saw towards the latter end of the second quarter.

Analyst
Alex Perry

Perfect. That's really helpful. And then just a follow-up on the e-commerce business. The growth has been pretty exceptional here. Like, I guess what do you think were the main drivers for the 49% new customer adoption since the competitor's websites were also open like, what do you think is sort of driving people to your e-commerce business versus others?

Executive
Jared S. Briskin

Well, yeah, we had exceptional Q1 as well as Q2. We've done a lot of things from a marketing standpoint to drive new customers to the website. We've seen increases across every channel. Part of that has been omni-channel activity as well as e-commerce. So we've got a lot more people both shopping online and in our stores. So that has also attributed to a gain in overall traffic as well. But we're also seeing really, really good gains in mobile traffic and part of that is the strength of our app. If you look at our launch calendar over Q2 was very, very favorable. So we had a lot of people come to the website at that point and shop as well as the apps, and that also drove online traffic.

Analyst
Alex Perry

Perfect. Thank you. Best of luck going forward.

Executive
Michael E. Longo

Thank you.

Executive
Robert J. Volke

Thanks.

Operator
Operator

Our next question comes from Sam Poser with Susquehanna. Please proceed.

Analyst
Samuel Poser

Good morning, everybody. Thank you for taking my questions. And I have quite a few, despite the good information that you provided in the release and in the presentation. Good morning. I guess first of all, about the inventory. I understand that the inventory is going to -- not going to be as low year-over-year going forward. Does the results from the second quarter given -- with your inventory