Hibbett Sports 2010 Annual Report Download - page 12

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brand presence within these regions. We also emphasize and work with our vendors to establish favorable pricing and
to receive cooperative marketing funds. We believe that we maintain good working relationships with our vendors.
For the fiscal year ended January 30, 2010, Nike, our largest vendor, represented 49.9% of our total purchases while
our next largest vendor represented 9.0% of our total purchases. For the fiscal year ended January 31, 2009, Nike, our
largest vendor, represented 51.4% of our total purchases while our next largest vendor represented 8.4% of our total
purchases.
The loss of key vendor support could be detrimental to our business, financial condition and results of
operations. We believe that we have long-standing and strong relationships with our vendors and that we have
adequate sources of brand name merchandise on competitive terms; however, we cannot guarantee that we will be
able to acquire such merchandise at competitive prices or on competitive terms in the future. In this regard, certain
merchandise that is high profile and in high demand may be allocated by vendors based upon the vendors’ internal
criterion, which is beyond our control. See “Risk Factors.”
Our Advertising and Promotion
We target special advertising opportunities in our markets to increase the effectiveness of our advertising
budget. In particular, we prefer advertising in local media as a way to further differentiate Hibbett from national chain
competitors. Substantially all of our advertising and promotional spending is centrally directed. Print advertising,
including direct mail catalogs and postcards to customers, serves as the foundation of our promotional program and
accounted for the majority of our total advertising costs in Fiscal 2010.
Other advertising means, such as television commercials, outdoor billboards, Hibbett trucks, our MVP loyalty
program and the Hibbett website, are used to reinforce Hibbett’s name recognition and brand awareness in the
community. Our internet marketing program, featuring our MVP loyalty program, has provided an expanded customer
database that helps us target the specific needs of our customers. By allowing us to reach and interact with our
customers on a regular basis through e-mail, this marketing effort is quickly becoming the most efficient, timely and
targeted segment of our marketing program.
Our Competition
The business in which we are engaged is highly competitive. Many of the items we offer in our stores are also
sold by local sporting goods stores, athletic footwear and other specialty athletic stores, traditional shoe stores and
national and regional sporting goods stores. The marketplace for sporting goods remains highly fragmented as many
different retailers compete for market share by utilizing a variety of store formats and merchandising strategies.
However, we believe the competitive environment for sporting goods remains different in smaller markets where retail
demand may not support larger format stores. In such markets as those targeted by Hibbett, national chains compete by
focusing on a specialty category like athletic footwear.
Our stores compete with national chains that focus on athletic footwear, local sporting goods stores,
department and discount stores, traditional shoe stores and mass merchandisers. On a limited basis, we have
competition from national sporting goods chains in some of our mid-sized markets. Although we face competition
from a variety of competitors, including on-line competitors, we believe that our stores are able to compete effectively
by being distinguished as sporting goods stores emphasizing team sports and fitness merchandise complemented by a
selection of localized apparel and accessories. Our competitors may carry similar product lines and national brands,
but we believe the principal competitive factors for all of our stores are service, breadth of merchandise offered,
availability of brand names and availability of local merchandise. We believe we compete favorably with respect to
these factors in the smaller markets predominantly in the Southeast, Southwest, Mid-Atlantic and lower Midwest
regions of the United States. However, we cannot guarantee that we will be able to continue to compete successfully
against existing or future competitors. Expansion into markets served by our competitors, entry of new competitors or
expansion of existing competitors into our markets, could be detrimental to our business, financial condition and results
of operations. See “Risk Factors.”
Our Trademarks
Our Company, by and through subsidiaries, is the owner or licensee of trademarks that are very important
to our business. For the most part, trademarks are valid as long as they are in use and/or their registrations are
properly maintained. Registrations of trademarks can generally be renewed indefinitely as long as the trademarks
are in use.
Following is a list of active trademarks registered and owned by the Company:
 Hibbett Sports, Registration No. 2717584
 Sports Additions, Registration No. 1767761
 Hibbett, Registration No. 3275037