Hibbett Sports 2012 Annual Report Download - page 12

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Our Information Systems
We maintain sophisticated information systems and use technology as an enabler of our business strategies. For
example, we have implemented systems targeted at improving financial control, cost management, inventory control,
merchandise planning, replenishment and product allocation. In recent years, we have focused on information systems that are
designed to be used in all stores, yet are flexible enough to meet the unique needs of each specific store location.
A communications network sends and receives critical business data to and from our stores, providing timely and
extensive information on business activity in every location. Our information is processed in a secure environment to protect
both the actual data and the physical assets. We attempt to mitigate the risk of possible business interruptions by maintaining a
disaster recovery plan, which includes storing critical business information off-site.
We strive to maintain highly qualified and motivated individuals to support our information systems, which includes
help desk staff, programmers, system analysts, business analysts, project managers and a security officer. Our systems are
monitored 24 hours a day. Our management believes that our current systems and practice of implementing regular updates
position us well to support current needs and future growth. We use a strategic information systems planning process that
involves senior management and is integrated into our overall business planning and enterprise risk management. Information
systems projects are prioritized based upon strategic, financial, regulatory and other business criteria.
Our Advertising and Promotion
We target special advertising opportunities in our markets to increase the effectiveness of our advertising budget. Our
advertising and promotional spending is centrally directed. Print advertising, including direct mail catalogs and postcards to
customers, has historically served as the foundation of our promotional program and accounted for the majority of our total
advertising costs in Fiscal 2012. Other advertising, such as television commercials, outdoor billboards, Hibbett trucks, our MVP
customer loyalty program and the Hibbett website, are used to reinforce Hibbett’s name recognition and brand awareness in the
community. By allowing us to reach and interact with our customers on a regular basis through e-mail, the MVP program marketing
effort is quickly becoming the most efficient, timely and targeted segment of our marketing program. We expect digital marketing,
including mobile, social networks, website and MVP program marketing, to become a more significant portion of our advertising
budget over the next several years.
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 is 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 is different in smaller markets where retail demand may not support larger format stores.
Our stores compete with 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 larger markets.
Although we face competition from a variety of competitors, including on-line retailers, 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, convenience, 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 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