Hibbett Sports 2010 Annual Report Download - page 24

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20
a store remodel or relocation results in the store being closed for a significant period of time, its sales are removed from
the comparable store base until it has been open a full 12 months. Our four Sports & Co., stores are not and have never
been included in the comparable store net sales comparison because we have not opened a superstore since September
1996 and we do not have plans to open additional superstores in the future.
Executive Summary
Net sales for the fiscal year ended January 30, 2010, increased to $593.5 million compared with $564.2
million and $520.7 million for the fiscal years ended January 31, 2009 and February 2, 2008, respectively.
Operating income was 8.8% of net sales for Fiscal 2010 compared to 8.5% for Fiscal 2009 and 9.3% for Fiscal
2008. Comparable store sales increased 0.7% in Fiscal 2010, compared to a comparable store sales increase of 0.5%
in Fiscal 2009 and a comparable store sales decrease of 2.9% in Fiscal 2008. Net income in Fiscal 2010 increased
10.5% to $32.5 million compared with $29.4 million in Fiscal 2009. Earnings per diluted share increased to $1.12
compared with $1.02 for Fiscal 2009 and $0.96 for Fiscal 2008.
During the fiscal year, Hibbett opened forty-two new stores and closed twenty stores, bringing the store
base to 767 in 24 states as of January 30, 2010. Inventory on a per store basis at January 30, 2010 increased by
8.4% compared to January 31, 2009, as we made a concerted effort to increase levels in advance of the spring sports
season. Hibbett ended the fiscal year with $49.7 million of available cash and cash equivalents on the consolidated
balance sheet and full availability under its $80.0 million unsecured credit facilities.
Recent Accounting Pronouncements
See Note 2 of Item 8 of this Annual Report on Form 10-K for the fiscal year ended January 30, 2010, for
information regarding recent accounting pronouncements.
Results of Operations
The following table sets forth the percentage relationship to net sales of certain items included in our
consolidated statements of operations for the periods indicated.
January 30, January 31, February 2,
2010 2009 2008
Net sales 100.0% 100.0% 100.0%
Costs of goods sold, including distribution and store
occupancy costs 66.9 67.1 67.6
Gross profit 33.1 32.9 32.4
Store operating, selling and administrative expenses 21.9 21.8 20.8
Depreciation and amortization 2.3 2.5 2.3
Operating income 8.8 8.5 9.3
Interest income - - 0.1
Interest expense - (0.1) -
Interest (expense) income, net - (0.1) 0.1
Income before provision for income taxes 8.8 8.4 9.3
Provision for income taxes 3.3 3.2 3.5
Net income 5.5% 5.2% 5.8%
Fiscal Year Ended
Note: Columns may not sum due to rounding.
Fiscal 2010 Compared to Fiscal 2009
Net sales. Net sales increased $29.3 million, or 5.2%, to $593.5 million for the 52 weeks ended January 30,
2010, from $564.2 million for the 52 weeks ended January 31, 2009. Furthermore:
 We opened 42 Hibbett Sports stores while closing 20 Hibbett Sports stores for net stores opened of 22 stores
in the 52 weeks ended January 30, 2010. Nineteen high performing stores were expanded. New stores and