Hibbett Sports 2007 Annual Report Download - page 21

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Employee Development. We develop our training programs in a continuing effort to service the needs of our
customers and employees. These programs are designed to increase employee knowledge and include video
training in all stores for the latest in technical detail of new products and new operational and service techniques.
Because we primarily promote or relocate current employees to serve as managers for new stores, training and
assessment of our employees is essential to our continued growth.
We have implemented programs in our stores and corporate offices to ensure that we hire and promote the
most qualified employees in a non-discriminatory way. One of the most significant programs we have is Hibbett
University or “Hibbett U” which is an intensive, four day training session held at our corporate offices for new store
managers.
Item 1A. Risk Factors.
You should carefully consider the following risks, as well as the other information contained in this report,
before investing in shares of our common stock. If any of the following risks actually occur, our business could be
harmed. In that case, the trading price of our common stock could decline, and you might lose all or part of your
investment.
We may be unable to achieve our expansion plans for future growth.
We have grown rapidly primarily through opening new stores, growing from 67 stores at the beginning of fiscal
year 1997 to 613 stores at February 3, 2007. We plan to increase our store base by a net of 85 to 90 new Hibbett Sports
stores in fiscal year 2008. Our continued growth will depend, in large part, upon our ability to open new stores in a timely
manner and to operate them profitably. Additionally, successful expansion is subject to various contingencies, many of
which are beyond our control. These contingencies include, among others:
• our ability to identify and secure suitable store sites on a timely basis;
• our developers’ and landlords’ ability to deliver leased premises timely;
• our ability to negotiate advantageous lease terms;
• our ability to complete any necessary construction or refurbishment of these sites;
• the successful integration of new stores into existing operations; and
• our ability to successfully integrate a new distribution facility.
As our business grows, we will need to attract and retain additional qualified personnel in a timely manner and
develop, train and manage an increasing number of management level sales and other employees. We cannot assure
you that we will be able to attract and retain personnel as needed in the future. If we are not able to hire capable store
managers and other store-level personnel, we will not be able to open new stores as planned and our revenue growth
and operating results could suffer.
We cannot give any assurances that we will be able to continue our expansion plans successfully; that we will
be able to achieve results similar to those achieved with prior locations; or that we will be able to continue to manage our
growth effectively. Our failure to achieve our expansion plans could materially and adversely affect our business,
financial condition and results of operations. In addition, our operating margins may be impacted in periods in which
incremental expenses are incurred as a result of new store openings.
A downturn in the economy could affect consumer purchases of discretionary items, which could reduce our
sales.
In general, our sales represent discretionary spending by our customers. Discretionary spending is affected by
many factors, including, among others, general business conditions, interest rates, the availability of consumer credit,
taxation and consumer confidence in future economic conditions. Our customers’ purchases of discretionary items,
including products that we sell, could decline during periods when disposable income is lower or periods of actual or
perceived unfavorable economic conditions. If this occurs, our revenues and profitability could decline. In addition, our
sales could be adversely affected by a downturn in the economic conditions in the markets in which we operate.
Our inability to identify, and anticipate changes in consumer demands and preferences and our inability to
respond to such consumer demands in a timely manner could reduce our sales.
Our products appeal to a broad range of consumers whose preferences cannot be predicted with certainty and
are subject to rapid change. Our success depends on our ability to identify product trends as well as to anticipate and
respond to changing merchandise trends and consumer demand in a timely manner. We cannot assure you that we will
be able to continue to offer assortments of products that appeal to our customers or that we will satisfy changing