Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Aug. 04, 2018 | Sep. 07, 2018 | Jul. 29, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HIBBETT SPORTS INC | ||
Entity Central Index Key | 1,017,480 | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 313,135,768 | ||
Entity Common Stock, Shares Outstanding | 18,556,227 | ||
Document Fiscal Year Focus | 2,019 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 4, 2018 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 119,591 | $ 73,544 |
Inventories, net | 248,135 | 253,201 |
Other current assets | 21,013 | 20,029 |
Total current assets | 388,739 | 346,774 |
Property and equipment | 257,638 | 258,010 |
Less accumulated depreciation and amortization | 153,218 | 148,312 |
Property and equipment, net | 104,420 | 109,698 |
Other assets, net | 4,820 | 5,374 |
Total Assets | 497,979 | 461,846 |
Current Liabilities: | ||
Accounts payable | 112,759 | 93,435 |
Accrued payroll expenses | 10,226 | 10,424 |
Deferred rent | 6,004 | 5,909 |
Capital lease obligations | 643 | 663 |
Other accrued expenses | 9,660 | 5,136 |
Total current liabilities | 139,292 | 115,567 |
Deferred rent | 19,368 | 20,291 |
Other liabilities | 5,768 | 6,392 |
Total liabilities | 164,428 | 142,250 |
Stockholders' Investment: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 80,000,000 shares authorized, 38,954,203 and 38,862,929 shares issued at August 4, 2018 and February 3, 2018, respectively | 389 | 389 |
Paid-in capital | 183,697 | 180,536 |
Retained earnings | 751,543 | 731,901 |
Treasury stock, at cost; 20,286,892 and 19,910,291 shares repurchased at August 4, 2018 and February 3, 2018, respectively | (602,078) | (593,230) |
Total stockholders' investment | 333,551 | 319,596 |
Total Liabilities and Stockholders' Investment | $ 497,979 | $ 461,846 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Aug. 04, 2018 | Feb. 03, 2018 |
Stockholders' Investment: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 38,954,203 | 38,862,929 |
Treasury stock, shares (in shares) | 20,286,892 | 19,910,291 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 211,123 | $ 187,958 | $ 485,830 | $ 463,646 |
Cost of goods sold | 144,772 | 133,550 | 322,706 | 311,020 |
Gross margin | 66,351 | 54,408 | 163,124 | 152,626 |
Store operating, selling and administrative expenses | 61,965 | 53,556 | 123,869 | 111,893 |
Depreciation and amortization | 6,271 | 6,014 | 12,519 | 11,726 |
Operating (loss) income | (1,885) | (5,162) | 26,736 | 29,007 |
Interest (income) expense, net | (167) | 56 | (111) | 124 |
(Loss) income before provision for income taxes | (1,718) | (5,218) | 26,847 | 28,883 |
(Benefit)/Provision for income taxes | (496) | (2,042) | 6,560 | 11,150 |
Net (loss) income | $ (1,222) | $ (3,176) | $ 20,287 | $ 17,733 |
Basic (loss) earnings per share | $ (0.06) | $ (0.15) | $ 1.07 | $ 0.84 |
Diluted (loss) earnings per share | $ (0.06) | $ (0.15) | $ 1.06 | $ 0.84 |
Weighted average shares outstanding: | ||||
Basic (in dollars per share) | 18,823 | 20,781 | 18,896 | 21,049 |
Diluted (in dollars per share) | 18,823 | 20,781 | 19,079 | 21,124 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2018 | Jul. 29, 2017 | |
Cash Flows From Operating Activities: | ||
Net income | $ 20,287 | $ 17,733 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,519 | 11,726 |
Stock-based compensation | 2,653 | 2,349 |
Other non-cash adjustments to net income | 415 | 122 |
Changes in operating assets and liabilities: | ||
Inventories, net | 6,060 | 4,270 |
Prepaid expenses and other | (118) | (3,622) |
Accounts payable | 19,131 | 21,835 |
Other assets and liabilities | 1,580 | 2,772 |
Net cash provided by operating activities | 62,527 | 57,185 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (7,993) | (14,375) |
Other, net | 172 | 56 |
Net cash used in investing activities | (7,821) | (14,319) |
Cash Flows From Financing Activities: | ||
Cash used for stock repurchases | (8,432) | (28,541) |
Net payments on capital lease obligations | (319) | (294) |
Proceeds from options exercised and purchase of shares under the employee stock purchase plan | 508 | 480 |
Other, net | (416) | (709) |
Net cash used in financing activities | (8,659) | (29,064) |
Net increase in cash and cash equivalents | 46,047 | 13,802 |
Cash and cash equivalents, beginning of period | 73,544 | 38,958 |
Cash and cash equivalents, end of period | $ 119,591 | $ 52,760 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Aug. 04, 2018 | |
Basis of Presentation and Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | 1. Basis of Presentation and Accounting Policies The accompanying unaudited condensed consolidated financial statements of Hibbett Sports, Inc. and its wholly-owned subsidiaries (including the condensed consolidated balance sheet as of February 3, 2018, which has been derived from audited financial statements) have been prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. References to "we," "our," "us" and the "Company" refer to Hibbett Sports, Inc. and its subsidiaries as well as its predecessors. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018 filed on March 30, 2018. In our opinion, the unaudited condensed consolidated financial statements included herein contain all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position as of August 4, 2018 and the results of our operations and cash flows for the periods presented. There were no material changes in our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018 filed with the Securities and Exchange Commission on March 30, 2018, except as set forth below: Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers Retail Store Sales Retail Store Orders Layaways Digital Channel Sales Hibbett Rewards Program Gift Cards Returned Sales Revenues disaggregated by major product categories are as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Footwear $ 119,062 $ 100,425 $ 277,650 $ 257,995 Apparel 55,896 52,095 120,260 115,971 Equipment 36,165 35,438 87,920 89,680 Total $ 211,123 $ 187,958 $ 485,830 $ 463,646 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Aug. 04, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Standards that were adopted In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard related to revenue recognition. Under ASU 2014-09, Revenue from Contracts with Customers In preparation for implementation of the standard, we identified the revenue streams that would be affected. We then designed and implemented processes and internal controls to appropriately recognize and present the associated financial information. Based on these efforts, we determined that the adoption of ASU 2014-09 changed the recognition and presentation of: · The stand-alone benefit received by customers through the Hibbett Rewards customer loyalty program recorded as a separate performance obligation, · Gift card breakage income recognized in net sales in proportion to the customer redemption pattern, and · The liability for net sales returns recognized on a gross basis including a right to recover asset measured at the former carrying value of the inventory less any expected recovery costs. We applied ASU 2014-09 only to contracts that were not completed prior to Fiscal 2019. The cumulative effect of initially applying ASU 2014-09 was a $0.6 million decrease to the opening balance of retained earnings as of February 4, 2018. We expect the adoption to be immaterial to our financial position, results of operations and cash flows on an ongoing basis. As Reported ASU 2014-09 Effect (1) Excluding ASU 2014-09 Effect Inventories, net $ 248,135 $ 375 $ 247,760 Other current assets $ 21,013 $ 447 $ 20,566 Accounts payable $ 112,759 $ 569 $ 112,190 Other accrued expenses $ 9,660 $ 392 $ 9,268 (1) Does not include the cumulative effect of initially adopting ASU 2014-09 to our consolidated balance sheet as adjusted as of February 4, 2018. The effect of the adoption of ASU 2014-09 on our unaudited condensed consolidated statement of operations for the thirteen weeks ended August 4, 2018 was (in thousands, except per share amounts): As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect Net sales $ 211,123 $ (346 ) $ 211,469 Cost of goods sold $ 144,772 $ (344 ) $ 145,116 Gross margin $ 66,351 $ (2 ) $ 66,353 Store operating, selling and administrative expenses $ 61,965 $ (27 ) $ 61,992 Loss before provision for income taxes $ (1,718 ) $ 25 $ (1,743 ) Benefit for income taxes $ (496 ) $ (7 ) $ (489 ) Net loss $ (1,222 ) $ 18 $ (1,240 ) Diluted loss per share $ (0.06 ) $ 0.01 $ (0.07 ) The effect of the adoption of ASU 2014-09 on our unaudited condensed consolidated statement of operations for the twenty-six weeks ended August 4, 2018 was (in thousands, except per share amounts): As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect Net sales $ 485,830 $ (524 ) $ 486,354 Cost of goods sold $ 322,706 $ (322 ) $ 323,028 Gross margin $ 163,124 $ (202 ) $ 163,326 Store operating, selling and administrative expenses $ 123,869 $ (63 ) $ 123,932 Income before provision for income taxes $ 26,847 $ (139 ) $ 26,986 Provision for income taxes $ 6,560 $ (34 ) $ 6,594 Net income $ 20,287 $ (105 ) $ 20,392 Diluted earnings per share $ 1.06 $ - $ 1.06 Standards that are not yet adopted In February 2016, the FASB issued ASU 2016-02 – Leases While we continue to assess the effect of adoption of ASU 2016-02, we anticipate its implementation will result in recognition of approximately $150.0 million to $180.0 million in net ROU assets and approximately $170.0 million to $200.0 million in lease liabilities. We do not expect a significant change in our leasing strategy between now and adoption. We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations. As of August 4, 2018, there were no other new pronouncements or interpretations that had or were expected to have a significant impact on our operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments We utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level I Level II Level III The table below segregates all financial assets that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value as of August 4, 2018 and February 3, 2018 (in thousands): August 4, 2018 February 3, 2018 Level I Level II Level III Level I Level II Level III Short-term investments $ 462 $ - $ - $ 463 $ - $ - Long-term investments 2,362 - - 2,418 - - Total investments $ 2,824 $ - $ - $ 2,881 $ - $ - Short-term investments are reported in other current assets on our unaudited condensed consolidated balance sheets. Long-term investments are reported in other assets on our unaudited condensed consolidated balance sheets. |
Debt
Debt | 6 Months Ended |
Aug. 04, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt At August 4, 2018, we had two unsecured credit facilities; one which allows for borrowings up to $30.0 million with an interest rate agreed upon between the lender and us at the time a loan is made and one which allows for borrowings up to $30.0 million with an interest rate at one month LIBOR plus 2.0%. Both facilities expire in April 2019. Under the provisions of both facilities, we do not pay commitment fees nor are we subject to covenant requirements. At August 4, 2018, a total of $60.0 million was available to us from these facilities. At February 3, 2018, we had two unsecured credit facilities, which were renewable in March and April 2018, respectively. The March facility allowed for borrowings up to $30.0 million with an interest rate agreed upon between the lender and us at the time a loan is made. The April facility allowed for borrowings up to $30.0 million at a rate of one month LIBOR plus 2.5%. Under the provisions of both facilities, we did not pay commitment fees nor were we subject to covenant requirements. We did not incur any borrowings against our credit facilities during the twenty-six-week period ended August 4, 2018. There were seven days during the 53 weeks ended February 3, 2018, where we incurred borrowings against our credit facilities for an average and maximum borrowing of $4.1 million and $4.9 million, respectively, and an average interest rate of 2.78%. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Aug. 04, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 5. Stock-Based Compensation The compensation costs that have been charged against income for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 were as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Stock-based compensation expense by type: Stock options $ 17 $ - $ 177 $ 172 Restricted stock units 849 618 2,372 2,109 Employee stock purchases 28 23 57 56 Director deferred compensation 23 6 47 12 Total stock-based compensation expense 917 647 2,653 2,349 Income tax benefit recognized 225 228 593 844 Stock-based compensation expense, net of income tax $ 692 $ 419 $ 2,060 $ 1,505 In the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017, we granted the following equity awards: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Stock options - - 19,994 20,372 Restricted stock unit awards - - 145,180 108,429 Performance-based restricted stock unit awards - - 24,392 54,900 Deferred stock units 1,023 286 2,002 487 At August 4, 2018, the total compensation costs related to nonvested restricted stock unit awards not yet recognized was $7.3 million and the weighted-average period over which such awards are expected to be recognized was 3.0 years. The total compensation costs related to nonvested stock options to be recognized was $8,100 and the period over which the award is expected to be recognized was 0.1 years at August 4, 2018. Under the 2012 Non-Employee Director Equity Plan (2012 Plan), a total of 4,435 and 3,361 shares of our common stock were awarded during the twenty-six weeks ended August 4, 2018 and July 29, 2017, respectively, as part of the annual equity award to directors in the first quarter. The weighted-average grant date fair value of stock options granted during the twenty-six weeks ended August 4, 2018 was $7.15. The weighted-average grant date fair value of stock options granted during the twenty-six weeks ended July 29, 2017 was $8.47 per share. The number of shares purchased, the average price per share and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Shares purchased 5,777 5,281 12,331 10,745 Average price per share $ 19.47 $ 17.64 $ 18.34 $ 21.42 Weighted average fair value at grant date $ 5.35 $ 6.26 $ 4.91 $ 5.24 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share The computation of basic earnings per share (EPS) is based on the number of weighted average common shares outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the weighted average common shares outstanding (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Weighted-average shares used in basic computations 18,823 20,781 18,896 21,049 Dilutive equity awards - - 183 75 Weighted-average shares used in diluted computations 18,823 20,781 19,079 21,124 For the thirteen weeks ended August 4, 2018, we excluded 227,356 options from the computation of diluted weighted-average common shares and common share equivalents outstanding because of their anti-dilutive effect. For the thirteen weeks ended July 29, 2017, we excluded 269,658 options from the computation of diluted weighted-average common shares and common share equivalents outstanding because of their anti-dilutive effect. During periods of net income, we exclude nonvested stock awards granted to certain employees from the computation of diluted weighted-average common shares and common share equivalents outstanding because they are subject to certain performance-based annual vesting conditions which had not been achieved by period end. During periods of net loss, no effect is given for nonvested stock awards. |
Stock Repurchase Activity
Stock Repurchase Activity | 6 Months Ended |
Aug. 04, 2018 | |
Stock Repurchase Activity [Abstract] | |
Stock Repurchase Activity | 7. Stock Repurchase Activity In November 2015, the Board of Directors (Board) authorized a Stock Repurchase Program (Program) of $300.0 million to repurchase our common stock through February 2, 2019. The Program replaced an existing program and authorizes repurchases of our common stock in open market or negotiated transactions, with the amount and timing of repurchases dependent on market conditions and at the discretion of our management. In addition to the Program, we also acquire shares of our common stock from holders of restricted stock unit awards to satisfy tax withholding requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the Program authorization. During the thirteen weeks ended August 4, 2018, we repurchased 336,302 shares of our common stock at a cost of $8.0 million. During the twenty-six weeks ended August 4, 2018, we repurchased 376,601 shares of our common stock at a cost of $8.8 million, including 18,765 shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.4 million. During the thirteen weeks ended July 29, 2017, we repurchased 282,609 shares of our common stock at a cost of $6.9 million, including 509 shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $7,800. During the twenty-six weeks ended July 29, 2017, we repurchased 1,030,743 shares of our common stock at a cost of $29.3 million, including 24,199 shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.7 million. As of August 4, 2018, we had approximately $195.7 million remaining under the Program for stock repurchases. Subsequent to August 4, 2018, we have repurchased 122,500 shares of our common stock at a cost of $2.4 million through September 7, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Lease Commitments. We have entered into capital leases for certain property. At August 4, 2018, total capital lease obligations were $2.6 million, of which $0.6 million was included in short-term capital lease obligations and $2.0 million was included in other liabilities on our unaudited condensed consolidated balance sheet. At February 3, 2018, total capital lease obligations were $3.2 million, of which $0.7 million was included in short-term capital lease obligations and $2.5 million was included in other liabilities on our unaudited condensed consolidated balance sheet. During the thirteen weeks ended August 4, 2018, we opened six stores and closed 15 stores, thus decreasing our lease commitments by a net of nine retail stores. The stores we opened have initial lease termination dates between July 2025 and February 2029. Annual Bonuses and Equity Incentive Awards. Specified officers and corporate employees of our Company are eligible to receive annual bonuses, based on measures of Company operating performance. At August 4, 2018 and February 3, 2018, there was $1.6 million and $1.9 million, respectively, of annual bonus related expenses included in accrued payroll expenses on our unaudited condensed consolidated balance sheets. In addition, the Compensation Committee of the Board has placed performance criteria on awards of restricted stock units (PSUs) to our "named executive officers" as determined in accordance with Item 402(a) of Regulation S-K. The performance criteria are tied to performance targets with respect to future return on invested capital and earnings before interest and taxes over a specified period of time. These PSUs are expensed under the provisions of ASC Topic 718, Compensation – Stock Compensation, Legal Proceedings and Other Contingencies. If we believe that a loss is both probable and estimable for a particular matter, the loss is accrued in accordance with the requirements of ASC Topic 450, Contingencies |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 04, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes Our effective tax rate is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate. For interim financial reporting, we estimate the annual effective tax rate based on expected taxable income for the full year and record a quarterly income tax provision (benefit) in accordance with the anticipated annual effective rate and adjust for discrete items. We update the estimates of the taxable income throughout the year as new information becomes available, including year-to-date financial results. This process often results in a change to our expected effective tax rate for the year. When this occurs, we adjust the income tax provision (benefit) during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual effective tax rate. We apply the provisions of ASC Subtopic 740-10 in accounting for uncertainty in income taxes. At August 4, 2018, we had a liability of $1.2 million associated with unrecognized tax benefits. We file income tax returns in the U.S. federal and various state jurisdictions. Generally, we are not subject to changes in income taxes by the U.S. federal taxing jurisdiction for years prior to Fiscal 2016 or by most state taxing jurisdictions for years prior to Fiscal 2015. |
Basis of Presentation and Acc15
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Basis of Presentation and Accounting Policies [Abstract] | |
Disaggregation of revenue by major product categories | Revenues disaggregated by major product categories are as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Footwear $ 119,062 $ 100,425 $ 277,650 $ 257,995 Apparel 55,896 52,095 120,260 115,971 Equipment 36,165 35,438 87,920 89,680 Total $ 211,123 $ 187,958 $ 485,830 $ 463,646 |
Recent Accounting Pronounceme16
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of the adoption of ASU 2014-09 on our unaudited condensed consolidated balance sheet as of August 4, 2018 was (in thousands): As Reported ASU 2014-09 Effect (1) Excluding ASU 2014-09 Effect Inventories, net $ 248,135 $ 375 $ 247,760 Other current assets $ 21,013 $ 447 $ 20,566 Accounts payable $ 112,759 $ 569 $ 112,190 Other accrued expenses $ 9,660 $ 392 $ 9,268 (1) Does not include the cumulative effect of initially adopting ASU 2014-09 to our consolidated balance sheet as adjusted as of February 4, 2018. The effect of the adoption of ASU 2014-09 on our unaudited condensed consolidated statement of operations for the thirteen weeks ended August 4, 2018 was (in thousands, except per share amounts): As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect Net sales $ 211,123 $ (346 ) $ 211,469 Cost of goods sold $ 144,772 $ (344 ) $ 145,116 Gross margin $ 66,351 $ (2 ) $ 66,353 Store operating, selling and administrative expenses $ 61,965 $ (27 ) $ 61,992 Loss before provision for income taxes $ (1,718 ) $ 25 $ (1,743 ) Benefit for income taxes $ (496 ) $ (7 ) $ (489 ) Net loss $ (1,222 ) $ 18 $ (1,240 ) Diluted loss per share $ (0.06 ) $ 0.01 $ (0.07 ) The effect of the adoption of ASU 2014-09 on our unaudited condensed consolidated statement of operations for the twenty-six weeks ended August 4, 2018 was (in thousands, except per share amounts): As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect Net sales $ 485,830 $ (524 ) $ 486,354 Cost of goods sold $ 322,706 $ (322 ) $ 323,028 Gross margin $ 163,124 $ (202 ) $ 163,326 Store operating, selling and administrative expenses $ 123,869 $ (63 ) $ 123,932 Income before provision for income taxes $ 26,847 $ (139 ) $ 26,986 Provision for income taxes $ 6,560 $ (34 ) $ 6,594 Net income $ 20,287 $ (105 ) $ 20,392 Diluted earnings per share $ 1.06 $ - $ 1.06 |
Fair Value of Financial Instr17
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Financial assets measured at fair value on a recurring basis | The table below segregates all financial assets that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value as of August 4, 2018 and February 3, 2018 (in thousands): August 4, 2018 February 3, 2018 Level I Level II Level III Level I Level II Level III Short-term investments $ 462 $ - $ - $ 463 $ - $ - Long-term investments 2,362 - - 2,418 - - Total investments $ 2,824 $ - $ - $ 2,881 $ - $ - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-based compensation expense by type | The compensation costs that have been charged against income for the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017 were as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Stock-based compensation expense by type: Stock options $ 17 $ - $ 177 $ 172 Restricted stock units 849 618 2,372 2,109 Employee stock purchases 28 23 57 56 Director deferred compensation 23 6 47 12 Total stock-based compensation expense 917 647 2,653 2,349 Income tax benefit recognized 225 228 593 844 Stock-based compensation expense, net of income tax $ 692 $ 419 $ 2,060 $ 1,505 |
Equity awards granted during the period | In the thirteen and twenty-six weeks ended August 4, 2018 and July 29, 2017, we granted the following equity awards: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Stock options - - 19,994 20,372 Restricted stock unit awards - - 145,180 108,429 Performance-based restricted stock unit awards - - 24,392 54,900 Deferred stock units 1,023 286 2,002 487 |
Employee Stock Purchases during the period | The number of shares purchased, the average price per share and the weighted-average grant date fair value of shares purchased through our employee stock purchase plan were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Shares purchased 5,777 5,281 12,331 10,745 Average price per share $ 19.47 $ 17.64 $ 18.34 $ 21.42 Weighted average fair value at grant date $ 5.35 $ 6.26 $ 4.91 $ 5.24 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Aug. 04, 2018 | |
Earnings Per Share [Abstract] | |
Weighted average common shares outstanding | The following table sets forth the weighted average common shares outstanding (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2018 July 29, 2017 August 4, 2018 July 29, 2017 Weighted-average shares used in basic computations 18,823 20,781 18,896 21,049 Dilutive equity awards - - 183 75 Weighted-average shares used in diluted computations 18,823 20,781 19,079 21,124 |
Basis of Presentation and Acc20
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Disaggregation of revenue by major product categories [Line Items] | ||||
Net sales | $ 211,123 | $ 187,958 | $ 485,830 | $ 463,646 |
Deferred Revenue Arrangement [Line Items] | ||||
Revenue Recognition, Sales Returns, Reserve for Sales Returns | $ 900 | |||
Days Allowed For Entire Purchase Price For Merchandise Placed On Layaway | within 30 days | |||
Footwear [Member] | ||||
Disaggregation of revenue by major product categories [Line Items] | ||||
Net sales | $ 119,062 | 100,425 | 277,650 | 257,995 |
Apparel [Member] | ||||
Disaggregation of revenue by major product categories [Line Items] | ||||
Net sales | 55,896 | 52,095 | 120,260 | 115,971 |
Sports Equipment [Member] | ||||
Disaggregation of revenue by major product categories [Line Items] | ||||
Net sales | 36,165 | $ 35,438 | 87,920 | $ 89,680 |
Hibbett Rewards Program [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | 1,700 | 1,700 | ||
Gift Cards [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | 5,000 | $ 5,000 | ||
Revenue recognized from contract liability at beginning of period | $ 600 |
Recent Accounting Pronounceme21
Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories, net | $ 248,135 | $ 248,135 | $ 253,201 | ||
Other current assets | 21,013 | 21,013 | 20,029 | ||
Accounts payable | 112,759 | 112,759 | 93,435 | ||
Other accrued expenses | 9,660 | 9,660 | 5,136 | ||
Net sales | 211,123 | $ 187,958 | 485,830 | $ 463,646 | |
Cost of goods sold | 144,772 | 133,550 | 322,706 | 311,020 | |
Gross margin | 66,351 | 54,408 | 163,124 | 152,626 | |
Store operating, selling and administrative expenses | 61,965 | 53,556 | 123,869 | 111,893 | |
Income/(Loss) before provision for income taxes | (1,718) | (5,218) | 26,847 | 28,883 | |
(Benefit)/Provision for income taxes | (496) | (2,042) | 6,560 | 11,150 | |
Net income | $ (1,222) | $ (3,176) | $ 20,287 | $ 17,733 | |
Diluted earnings/(loss) per share (in dollars per share) | $ (0.06) | $ (0.15) | $ 1.06 | $ 0.84 | |
Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (600) | ||||
ASU 2014-09 Effect [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories, net | $ 375 | $ 375 | |||
Other current assets | 447 | 447 | |||
Accounts payable | 569 | 569 | |||
Other accrued expenses | 392 | 392 | |||
Net sales | (346) | (524) | |||
Cost of goods sold | (344) | (322) | |||
Gross margin | (2) | (202) | |||
Store operating, selling and administrative expenses | (27) | (63) | |||
Income/(Loss) before provision for income taxes | 25 | (139) | |||
(Benefit)/Provision for income taxes | (7) | (34) | |||
Net income | $ 18 | $ (105) | |||
Diluted earnings/(loss) per share (in dollars per share) | $ 0.01 | $ 0 | |||
Excluding ASU 2014-09 Effect [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories, net | $ 247,760 | $ 247,760 | |||
Other current assets | 20,566 | 20,566 | |||
Accounts payable | 112,190 | 112,190 | |||
Other accrued expenses | 9,268 | 9,268 | |||
Net sales | 211,469 | 486,354 | |||
Cost of goods sold | 145,116 | 323,028 | |||
Gross margin | 66,353 | 163,326 | |||
Store operating, selling and administrative expenses | 61,992 | 123,932 | |||
Income/(Loss) before provision for income taxes | (1,743) | 26,986 | |||
(Benefit)/Provision for income taxes | (489) | 6,594 | |||
Net income | $ (1,240) | $ 20,392 | |||
Diluted earnings/(loss) per share (in dollars per share) | $ (0.07) | $ 1.06 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 04, 2018 | Feb. 03, 2018 |
Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 462 | $ 463 |
Long-term investments | 2,362 | 2,418 |
Total investments | 2,824 | 2,881 |
Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total investments | 0 | 0 |
Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total investments | $ 0 | $ 0 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Aug. 04, 2018USD ($)CreditFacility | Aug. 04, 2018USD ($)CreditFacility | Feb. 03, 2018USD ($)CreditFacility | |
Line of Credit Facility [Line Items] | |||
Number of unsecured credit facilities | CreditFacility | 2 | 2 | 2 |
Available borrowings under credit facilities | $ 60 | $ 60 | $ 60 |
Days borrowings incurred against facilities | 0 days | 0 days | 7 days |
Average borrowings outstanding | $ 0 | $ 0 | $ 4.1 |
Maximum borrowings outstanding | $ 0 | $ 0 | $ 4.9 |
Average interest rate on outstanding borrowings | 0.00% | 0.00% | 2.78% |
Regions LOC [Member] | |||
Line of Credit Facility [Line Items] | |||
Expiration date of renewed facility | Apr. 30, 2019 | Apr. 30, 2018 | |
Maximum borrowing capacity under renewed facility | $ 30 | $ 30 | $ 30 |
Line of Credit Facility, Interest Rate Description | one month LIBOR plus 2.0% | one month LIBOR plus 2.5% | |
Description of variable interest rate basis | one month LIBOR | one month LIBOR | |
Basis spread on variable interest rate (in hundredths) | 2.00% | 2.50% | |
Debt outstanding at period end | $ 0 | 0 | |
Bank of America LOC [Member] | |||
Line of Credit Facility [Line Items] | |||
Expiration date of renewed facility | Apr. 30, 2019 | Mar. 31, 2018 | |
Maximum borrowing capacity under renewed facility | $ 30 | 30 | $ 30 |
Line of Credit Facility, Interest Rate Description | an interest rate agreed upon between the lender and us at the time a loan is made | an interest rate agreed upon between the lender and us at the time a loan is made | |
Debt outstanding at period end | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Stock-based compensation expense by type [Abstract] | ||||
Stock options | $ 17,000 | $ 0 | $ 177,000 | $ 172,000 |
Restricted stock units | 849,000 | 618,000 | 2,372,000 | 2,109,000 |
Employee stock purchases | 28,000 | 23,000 | 57,000 | 56,000 |
Director deferred compensation | 23,000 | 6,000 | 47,000 | 12,000 |
Total stock-based compensation expense | 917,000 | 647,000 | 2,653,000 | 2,349,000 |
Income tax benefit recognized | 225,000 | 228,000 | 593,000 | 844,000 |
Stock-based compensation expense, net of income tax | $ 692,000 | $ 419,000 | $ 2,060,000 | $ 1,505,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock purchased during the period under the employee stock purchase plan (in shares) | 5,777 | 5,281 | 12,331 | 10,745 |
Shares Awarded (in shares) | 4,435 | 3,361 | ||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 7.15 | $ 8.47 | ||
Grant date fair value of shares purchased through the employee stock purchase plan (in dollars per share) | $ 5.35 | $ 6.26 | 4.91 | 5.24 |
Purchase price paid for stock purchased through the employee stock purchase plan (in dollars per share) | $ 19.47 | $ 17.64 | $ 18.34 | $ 21.42 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Awarded (in shares) | 0 | 0 | 19,994 | 20,372 |
Total compensation costs related to nonvested awards not yet recognized | $ 8,100 | $ 8,100 | ||
Weighted-average period over which nonvested awards are expected to be recognized (in years) | 1 month 6 days | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Awarded (in shares) | 0 | 0 | 145,180 | 108,429 |
Total compensation costs related to nonvested awards not yet recognized | $ 7,300,000 | $ 7,300,000 | ||
Weighted-average period over which nonvested awards are expected to be recognized (in years) | 3 years | |||
Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Awarded (in shares) | 0 | 0 | 24,392 | 54,900 |
Deferred Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Awarded (in shares) | 1,023 | 286 | 2,002 | 487 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares used in basic computations (in shares) | 18,823,000 | 20,781,000 | 18,896,000 | 21,049,000 |
Dilutive equity awards (in shares) | 0 | 0 | 183,000 | 75,000 |
Weighted-average shares used in diluted computations (in shares) | 18,823,000 | 20,781,000 | 19,079,000 | 21,124,000 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 227,356 | 269,658 |
Stock Repurchase Activity (Deta
Stock Repurchase Activity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Sep. 07, 2018 | Nov. 19, 2015 | Aug. 04, 2018 | Jul. 29, 2017 | Aug. 04, 2018 | Jul. 29, 2017 | Feb. 03, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount authorized under stock repurchase program | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||
Stock Repurchase Program Expiration Date | Feb. 2, 2019 | ||||||
Shares of common stock repurchased during the period (in shares) | 122,500 | 336,302 | 282,609 | 376,601 | 1,030,743 | ||
Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements (in shares) | 0 | 509 | 18,765 | 24,199 | |||
Value of common stock repurchased during current period | $ 2,400,000 | $ 8,000,000 | $ 6,900,000 | $ 8,800,000 | $ 29,300,000 | ||
Value of tax withholding payments related to shares acquired from holders of restricted stock unit awards | $ 0 | $ 7,800 | $ 400,000 | $ 700,000 | |||
Shares of common stock repurchased to date (in shares) | 20,286,892 | 20,286,892 | 19,910,291 | ||||
Value of common stock repurchased to date | $ 602,078,000 | $ 602,078,000 | $ 593,230,000 | ||||
Value of shares of common stock remaining available for repurchase under the program | $ 195,700,000 | $ 195,700,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
Aug. 04, 2018USD ($)Lease | Feb. 03, 2018USD ($) | |
Commitments and Contingencies [Abstract] | ||
Capital lease obligation | $ 2,600 | $ 3,200 |
Capital lease obligations | 643 | 663 |
Capital lease obligation included in long-term liabilities | $ 2,000 | 2,500 |
Stores opened | Lease | 6 | |
Stores closed | Lease | 15 | |
Decrease in retail store lease commitments | Lease | 9 | |
Annual Bonuses and Equity Incentive Awards [Abstract] | ||
Annual bonus related expenses included in accrued payroll expenses | $ 1,600 | $ 1,900 |
Minimum [Member] | ||
Other Commitments | ||
Initial Lease Termination Dates | July 2,025 | |
Maximum [Member] | ||
Other Commitments | ||
Initial Lease Termination Dates | February 2,029 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Aug. 04, 2018USD ($) |
Reconciliation of unrecognized tax benefit [Roll Forward] | |
Unrecognized tax benefits that would affect effective income tax rate | $ 1.2 |