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

Aug 28, 2020 • 10:00 am ET


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


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Michael E. Longo

very challenging time. Those of us on the call are proud to represent our team mates today and we're extremely proud of them. And is I'm fond of saying, retail is the ultimate team sport, and I couldn't have picked a better team to complete with.

Speaking of our team, I did want to highlight the press release that came out earlier this week about recent changes to our store operations team. These new regional Vice Presidents of stores, reporting directly to Ben Knighten, our Senior Vice President of Ops, allow us to both improve our capabilities and better represent our consumer base. We're very excited about the team and their ability to further improve our consumer experience in the stores and in the omni-channel business.

Next slide that we're going to cover is the COVID response. As a reminder since mid-March, Hibbett adopted a stance and we would remain open in the stores and online as long as it was in compliance with state and local restrictions. At the same time we extend to pay benefits to our full-timers in order to help them during the time when their individual stores were closed. While running those stores, we made sure we follow federal, state and local guidelines to ensure the safety of our consumers as well as our employees. As a result of these actions, when we reopened our stores, we were fully staffed and we believe that our consumers felt safe to shop. And since we continue to do business throughout this time, we reopened with the freshest and newest inventory to sell.

So the next slide that we're going to cover is the sales drivers slide, and in that we wanted to break down the factors that we believe drove the second quarter sales and continue to produce strong sales results into Q3. As we discussed previously on our July 20 update, we believe the increases in sales were driven by a number of factors including, temporary closures of competitors, which we believe gave us the advantage of accessing new consumers, both in-store and online. Second one was accelerating consumer adoption of the e-commerce that gave us yet another set of new consumers who could test drive our best-in-class omni-channel experience. And the pent-up demand for March and the boost from fiscal stimulus gave consumers, both new and existing consumers even more reasons to shop with us.

And our data shows us a handful of important facts that I want to highlight. First, this situation drove traffic to our stores and to our website and yielded what we believe to be increased market share in resulting higher sales. Approximately 27% of store traffic and approximately 49% of our online business came from these new consumers. Second, now that these new consumers have experienced our trademark service and best-in-class omni-channel experience, it's our belief that we have the opportunity to retain many of them and drive higher sales volumes in the future. In fact, our data shows that