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

Aug 28, 2020 • 10:00 am ET

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

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Presentation
Executive
Michael E. Longo

done both in the distribution center as well as in the transport of those goods and some of the things that we can do to increase frequency of delivery, speed to market and then there is a hub store initiative that we'll speak to more in the future. All of those things combined, help us to continue to improve our business model and continue to improve our competitive advantages.

More important than all of that, our team of dedicated people who day-in and day-out deliver on our commitment to our consumer, we're so proud of what they do and so thank you to our employees. Bob, can you outline our future guidance please.

Executive
Robert J. Volke

Certainly. We continue to experience a great deal of economic uncertainty as longer term consumer behavior is difficult to predict in light of the ongoing COVID-19 pandemic, high unemployment rates and gridlock regarding additional stimulus measures. However, we are very confident in our business model and the trends we have seen over the last couple of months. As a result, we will provide some limited GAAP guidance for the back half of fiscal 2021. First, we anticipate comp sales will be in the mid single-digits. Gross margin is expected to improve by approximately 50 basis points to 70 basis points in comparison to the back half of fiscal 2020. SG&A as a percent of sales is projected to be approximately 70 basis points to 90 basis points below the comparable six month period of fiscal 2020. Diluted EPS is forecast to be in the range of $0.85 to $1 with an assumption that the effective tax rate will be approximately 26% and the diluted share count will be approximately 16.9 million. We do not anticipate the difference between our GAAP measures and our non-GAAP measures will be material in the second half of the year.

That concludes our prepared remarks. We have provided quite a bit of information for you to digest and we know you will be needing additional questions answered. So, operator, please open up the call for questions.