HIBB - Earnings call transcript Q1 2023

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Operator

Greetings and welcome to Hibbett, Inc.’s First Quarter Fiscal Year 2023 Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gavin Bell, Vice President of Investor Relations. Thank you.

begin. may You

Gavin Bell

hibbett.com good a and during note we available that prepared Thank of deck with Investor at homepage morning. our morning. & that section. prepared on is discussion deck investors.hibbett.com slide The the to the we help have remarks. may News or These the you this slide the Please via will our materials Relations under you at link Events found bottom and follow along refer

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Mike Longo

and Hibbett morning City call. QX the welcome to Gear earnings Good

am For Overview. those you on on entitled of the I Slide following along X slides, the

sales the declined XX%. line review our versus prior strong gives year. During sales we Comparable income guidance, at effectively share year coming delivered executed increase store an $X.XX. with strategic financial results first We top of increased of per sales the XX.X% this of versus diluted year, QX operating ‘XX. reiterating QX are of delivered the full quarter, comparable of XX% expectations. last Comparable the today. our In quarter, pre-pandemic fiscal in Furthermore, XX.X% our the and quarter our on of in earnings confidence in first quarter quarter and team we our us end delivered plan which position inventory

year-over-year believe lack less year’s reiterating we therefore and and We have limited to stimulus the in they last of share mostly The sales income income now to substantially was disposable versus impacted spending our inventory, factors, consumer caused year last and and our are effect behind QX. full outlook. decreased Two is QX guidance. their earnings diluted us. key comparable QX our per and The year stimulus year performance this of

arriving late in Our a this inventory increased with during quarter. by approximately quarter, $XX portion million the significant

of levels to in targets and achieve our improved well are we high result, have sales forward. our positioned demand a inventory a moving As number products

with areas to remains disciplined XX open in team selection for proven underserved to competition. our approach to and plan be in This on remain site advantage significant no also us a net stores competitive little the We or XX has process. new

related on over the Moving several and financial the improvement of performance to to remind of past business our Slide X, wanted everyone growth years. sales we

last years have positively fiscal and business to us. improved stimulus advantage steadily have landscape, by changes we competitive the opportunities the presented While been to impacted underlying to take model also the the of

we over rates annual years. generated As growth a result, past solid several compound the quarter-over-quarter

by inventory our in the consumer Importantly, position. business investments sales model, higher the structurally investments new pre-pandemic versus and driven rebased experience, customer and profits a have we at stronger improved levels levels in execution, retention

competitive we stores and release, in morning’s business assortment, service our in press compelling in creates merchandise and a omnichannel strong consumer eyes model, us to sales best-in-class As a puts results the our advantage of and in in us provides the partners profitability vendor years. the the best-in-class stated position marketplace, our deliver with believe that our the coming this in differentiation and

public XXX Jared, in to and team investors. XX,XXX organization a very take that moment customer, our of XX industries organization, the approximately main they survey based Companies partner am most trust: chosen to like touch to upon trusted members and fellow XXXX. Trusted our I’d our Newsweek’s entire list independent in congratulate the Before points have America’s are across of The all with we proud of experience an on were whom companies recognized been of three outstanding every I employee team turning And Most considered an call digital top across consumer, the to over member committed the providing everyday.

now stakeholders. We working trust turn I to of the over to that call earn are committed Jared. continue tirelessly to of to will all our

Jared Briskin

Good Thank you, morning. Mike.

to merchandising. turn X, Slide you If

line quarter, overall merchant first our in our expectations category. with performance is across the For the

products our licensed to grew and declined uneven the prior chain Footwear teams teens came on the and top tough apparel flow prior stimulus due an and inventory. mid mentioned, the comparisons sales both year to QX while of disruption, Mike of compared As to in supply single-digits. leading year, continued sports to

with All in of line those were our expectations.

a to during the first were impacts stimulus franchises primary the grew of fiscal double-digits quarter Apparel XX% latter in and quarter. the that in part the and comparison. that XXXX the position when to when declined low-teens grew accelerated ‘XX two for ‘XX. years the of the which and licensed mid-XXs, to declined. to in ‘XX. up Women’s compared the were fiscal women’s grew accessories a and ‘XX. grew except fiscal is meaningful more grew due was in the apparel, products, compared Footwear sports and the XXXX, contributors most continue the kids growth ‘XX Specific able fiscal get comp quarter. during when in low-teens. From the to low We all Team up when XXXX, key compared to in low-XXs sales kids to fall to compared inventory to category fiscal the growth. When to standpoint, sports fiscal when high-teens compared Fleece, socks the underwear merchandise were last were compared double-digits throughout and team as men’s fiscal footwear favorable categories calendar we believe of COVID XXs and to of in our fiscal compared men’s,

over very second quarter. pleased $XXX into QX positioned and drive well that as our Mike ended results to referenced are inventory therefore end earlier, As the at year million million, are from we we up $XX levels move

improved XXs. most Due low to referenced ‘XX. ‘XX trends comparison meaningful the As and in latter fiscal believe at to ongoing also down up my end ‘XX. in when improved were compared This track ‘XX, the fiscal ‘XX compared fiscal is in throughout the to in the position. inventory compared by of issues, of our line delays were of to we levels significantly fiscal commentary, sales to I growth with the the in low the fiscal the year when the followed inventory the XXs, supply April inventory regarding March comparing and when to chain the quarter inventory and quarter levels sales caused begin to part order when improved compared Sales our

the shift to first merchandising I Bob in to our having give combined turn that strategy Our discuss quarter, and strong to the our financial to confidence inventory organization end call will head now our with the elevating, results and working our us results. served strategic position, in over are continue merchandising quarter toe consumers.

Bob Volke

QX includes both that good refer brands. and Slide Please Jared We basis to Gear Hibbett City morning. results. ‘XX reported consolidated entitled and FY X Thanks, the on a results our

provided I and significant in Before boost number discuss stimulus fiscal XXXX sales like results, quarter of I would the ‘XX first categories. that to to quarter in fiscal the expense of a leverage growth first everyone remind funds

decline; to quarter quarter first the store pandemic, fiscal have of base in and increased first E-commerce cost million of of last million store year, basis the for compared year. fiscal organic fiscal have with large Overall but fiscal the to due the net costs and primarily third sales mainly looking investment of infrastructure XX% product to ‘XX quarter in point a sales cost of sales XX.X% current quarter of increased selling versus quarter XX% the current quarter combination first points, channel e-commerce last net comparable X.X% $XXX quarter store sales million first decreased amortization not XXX increase increase and sales of is primarily Brick-and-mortar fiscal and XX.X% services the stack. quarter of again, per first sales Depreciation fiscal associated fiscal administrative comparisons share back per XXX expected, XXXX, fiscal for ‘XX. Store the first in ‘XX. the approximately larger sales was the from in due quarter XXX.X% This of the the count occupancy Total decline to ‘XX growth year’s million advertising, XX.X%. freight same higher quarter ‘XX in first XX.X% year-over-year addition and generated comp this have product the XX.X% of first first first terms of XXX of most XXX sales the sales net performance. ‘XX. the the margin for year-over-year comp in compared XX.X% the of $X primarily to the supply comparison period. cost, fiscal the approximately period during versus comparable charges. net basis decreased opportunities ‘XX. points of than in first and $XXX.X projects. years in share million X.X% in year’s increased quarter. difficult the in approximately of fuel of of of approximate to items quarter increased year, the first approximate first year-over-year the to accounted for quarter mix; sales quarter the $X.X sales E-commerce first last the and by versus $XXX.X prior basis decline increased last quarter approximately compared for ‘XX. to increased net fiscal when to million quarter fiscal to comparison volume. prior of of support were operating first period the of sales point points increased expenses XX.X% $XX.X million X with ‘XX relevant were result any for $XXX.X in XX.X% net $XXX.X year reported of to X-year period to a and $X.XX XXXX, the quarter accessorial compared and decreased on in XXXX sales factors: margin XX.X%. Gross same by of income transportation deleverage performance, a increased surcharges increase, first an higher in the were decline increased basis Diluted XX% and in or during on following either XX.X% has earnings to We and XX.X% XX.X% first As This compared We year. to the quarter prior other in was of the sales reflecting And of fiscal with general by basis due did In a of professional capital fiscal operating, to and in comp of quarter non-GAAP due compared of quarter prior or XXX sales significant

fiscal and ‘XX. of cash had the higher the end to below although of million we quarter balance cash with in at Turning million $XX.X we ended the the of quarter first the sheet, balance beginning million the than slightly equivalents, quarter, the at $XX.X the $XXX.X well

last We the result debt and over $XX.X a from inventory Net was our period our the for and X inventory technology credit year. XX.X% short-term end months. a same the past development, rebrand from store this opened stores increase the X in have $XX quarter of at of end, comprised comprised of quarter, Since during X beginning – were closure. million, million million quarter $XXX X build X the the of of net of line quarter the X million, increase Capital expenditures on and net first new stores outstanding infrastructure XX.X% primarily a consisting we $XXX.X new quarter locations, projects. mainly a

of shares quarter, our $XX.X In count under quarter authorized store of at total for total over program cost Our million. XXX,XXX have the first end. repurchase stands just X,XXX share as approximately we repurchased a

Bill insights. a fiscal discuss Quinn I guidance, will our Before full consumer review few year

Bill Quinn

morning, into customer about are customers in general. rising QX, Good we believe inflation. feeling discretionary pulse impact on to They a on Entering concerned our our customers will their Thanks Through retail recent have continuing general Bob. spending. how that a are everyone. are keep research, inflation

However, specific brands, on majority athletic spending a reluctance of to the assortment. reduce comprise our customers have stated which

one, customers our of nature at differences: increased two seeing factors as average We calendar has our our are we in pre-pandemic keeping and substantially. behavior versus levels. has structural two the above XXXX, re-baseline retail Looking unit customer grown the these business see two, base fundamental

sales X% quarter. the represented X,XXX% calendar to comparable total Turning of year-over-year XX.X% e-commerce QX, our sales E-commerce for business, XXXX. in increased versus

to very two, digital our website There improvements three app; We’re inventory; one, last year. deliver growth improved increased and three, traffic key were to pleased over our drivers: and customer to experience.

will are growing, upcoming expect single focused in customer and record low to we To customer business on the see online a experience. particularly this quarter, and digital the continue on growth, fuel quarters. focused a high experience. number the we be to QX double-digit is to Our initiatives omni-channel with digit of growth

I’ll turn back over guidance. discuss to it our Now Volke Bob to

Bob Volke

guidance, the we relatively X of high year. Slide half XXXX back while negative to fiscal net provided year. fiscal consistent in the to sales year, low low sales the comp summarizes range call. to followed is the comp expected with sales projected are in teen last be be our and projected sales first flat ‘XX, to reiterates in Total compared the for single what on digits by negative Comp are the single-digit half the the in be of

evenly supply the forecasts stores, range to brick-and-mortar becomes time are supply Our on levels, of continue ease, this sales challenges, with attending spread gross are based margin upon chain as overall down assumptions to Net progresses, growth a as for predictable, XX.X% year mix to relatively inventory receipts pressures pre-pandemic year. is strong. and XX in position remains fiscal of anticipated sales, store ‘XX, more and new that XX.X%, decline. chain headwinds, margins our range a and estimated anticipated carry the the although new inventory of to occupancy consistent higher units in of percent XXXX lower throughout Fiscal strength the sales and sales of all the and from inflationary e-commerce contribute de-leverage store results of will be above to XX freight

share as become SG&A projected also believe the of is a range to in gross continue than XXXX of the be double-digit in fiscal as net percent XX.X% this investments in will and sales EPS an anticipated the to back margin higher inflation XX.X% the Wage $XX office average technology with year driven $XX.XX fiscal favorable feel and and be to an investments. although be of increase. in focus of in we environment. and an to favorable weighted and to ‘XX estimated XX.X comparison to anticipated will results estimated drivers a low a the and more SG&A of relatively margin, due million, levels. annualization in of levels, expectation favorable XX.X% infrastructure We Diluted ‘XX, progresses. by inventory challenging are position is half remodels of in are Operating to fixed made quite we expectations full projected costs percent is of fiscal $X.XX of to SG&A improving as gross to sales. become the to more income Similar back comps diluted pre-pandemic range million sales of estimated range an de-leverage Capital sales a to million. flat range expenditures on new store additional rate tax year using growth, count infrastructure $XX of

shares that open continues concludes questions. throughout prepared expectation and the Our dividend. we remarks. quarterly repurchase a the for our That capital the allocation please will strategy include to Operator, year recurring line

Operator

Thank proceed Our question you. first from Williams [Operator Poser Trading. Instructions] Please of Sam your with question. with line comes the

Sam Poser

me inventory taking Number have much was times. you you so good you these your when one, I the know for what – – overall going what’s are you it, I Have think, in April. momentum March How mean, like did business mentioned Jared, a mean, Thanks and – go of that May? to I accelerated positive seen Excuse at mentioned morning. from you have about but in trend you far talk my And questions. strange handful look you I to versus don’t happened I and seen on – stimulus – April? here.

Jared Briskin

Yes, times, Yes, certainly good indeed. Sam. morning, strange

mentioned, began significant we referenced in in inventory fiscal to think foremost, acceleration levels fiscal first pretty the as year referenced, we to ‘XX from a I back ‘XX. that compared on we I the decrease and the what compared trend inventory,

but February compared of occurred position, in as back difficult fiscal half half inventory compared fairly March the the sales inventory April. was As start accelerate. year. we That saw they back ‘XX improvement trend were the a April to the fiscal in the ‘XX significant get really – lack of to we of did back due able in acceleration our to of that to at in

Sam Poser

last things And can you year, of how give compared us look? to idea some

Jared Briskin

by Again, our look it we going are ‘XX, comment Sam, acceleration I way Again, our end significant as compare and flows on month. Yes. the to back see fiscal the is to we we really individual theory business at quarter. not did think best to

Sam Poser

us you Okay. e-commerce mentioned but improvements within within like due what margin but the of can that points XXX look to merch hit you give and merch the And by Not balanced? point then, that’s idea mix, Bob, margins of brick-and-mortar? of got sort basis maybe basis sort some within how percentages,

Jared Briskin

Sam, Yes, I’ll then and transition I’ll start Bill. to

First and there. impacts foremost, we declined did A product margin year-over-year. of that see couple the

First that of part we higher as margin heat quarter. the towards of was product like points. make penetration in the would lower foremost, sure some Certainly, early up the inventory and a impact. we product e-commerce to due high recognize the our basis have visit mix I did to a penetration product channel XXX the have rebased But margin an that

Sam Poser

margin Can margins up? e-commerce on and mix the it really I of percentage was I it but the takes your stores sales, to I or that? sales but down? – like gross mean, year-over-year, less know was store just a up your were follow-up margin e-commerce down, Like want understand your up drove I just e-commerce larger your was year-over-year of because percentage e-commerce –

Jared Briskin

of compared product significantly of as drives [indiscernible] was ‘XX. were of in product and that typically reduced of origin. the a we early mentioned, what lack to down first the the QX quarter, again, rebased the fiscal which lot I we and inventory But Sam, impact some is year-over-year

Sam Poser

you. Understood. Thank

Operator

of proceed with from Our Please Baird. the question. Justin W. with comes your next Kleber question line Robert

Justin Kleber

taking for morning, Good you Yes. the question. guys. Thank

guidance. obviously comp the at your implied down in more for we steeper at teens XX%. guide from decline around XX% pre-pandemic, at revenue sequentially, much As of XQ look the half implies – your low year I the implies that X% a to than comps If first the the XQ first look business quarter, normally which drops than historically

guess my in quarter? this is your sequential why hold seasonality So I normal would not question business

Jared Briskin

have the few with sequential challenged years and Certainly, Hi, are normal it’s good certainly gone stimulus. last COVID comps through what the we Jared. within to regard morning, with

foremost, specifically expectations. We are call did out not on meet going comment is, first to what QX, I our QX and will

[indiscernible] sales we quarter As inventory that fiscal acceleration effects. very in mentioned, to the are the we especially related the position, compared we during saw confident to ‘XX

Justin Kleber

XQ you. say go Okay, given you to also the line up your Jared, shaping thank with expectations, you guide? far as in would reiterated is

Jared Briskin

in of on I comment QX end exited saw Justin, we inventory can’t we position QX, confident with. at specifically the and very but again, the QX the that trends

Justin Kleber

Jared, the makeup Okay. the lot companies retail, of some just inventory of inventory, just inventory follow-up, maybe seeing elevated And across obviously, across then a report we’re how focus on a given on sector.

the so, there you the on about sounds build is inventory talking it are with where that? high pockets pack merchandise? products. there risk on focused heat of associated is a do are You’re you And But those And other or product. like if heavy markdown away lot that

Jared Briskin

Yes.

build foremost, position. the So to confident we’re with great of Obviously, from is $XX of fresh. the Number first in extremely the end the quarter, the year end and inventory question. the one, very million inventory

confident first the is the had very We’re business. certainly and some of composition the growth end saw in in the And vast end of the to that again, very the quarter the leader has of on of to the year so inventory the the ability from our supply in inventory. demanded with high majority footwear, chaos confident move injected chain we through that inventory the

QX be on we’re regard any at area where team with continues to great an inventory. job and control particular level. Very with inventory where done incredible a Our challenges controlling the end merchant at have our merchandising to the and has standing of of confident we support

Justin Kleber

you, I’ll then on. and question, pass Last Okay, it thank Jared.

this within quarter. tap on mentioned what you. guys on of have guess, record number Just Can any e-com Bill, you specific share you Thank that a you I on color initiatives, front? here

Bill Quinn

Bill. is this morning. Yes. Good Sure,

customers to e-commerce, to for yes, find products. So it make going easier for we’re

friction, omnichannel. payment where evolve also purchase make BOPIS stores a making really to are to combining programs little thing believe intersection bit. like is curbside. now omnichannel it’s that friction, I going reduce And And the two. we’re the fulfillment. at about to is well of and nearly traditional And digital those mentioned we beyond points going are We improvements and investments and learning between

to an are And year across opportunity to as is omnichannel. taking get e-commerce we this that make in so want I investments as both what well

Justin Kleber

of Great. guys best for of year. you, Thank the rest and luck

Mike Longo

Thank you.

Operator

the with America. Our next Bank comes your Perry proceed question from Alex of Please line question. with of

Alex Perry

taking questions. Hi, thanks for my

I macro So just wanted factors factored to into ask how are of much sort guidance here. the

of think this the an I year, much both of there overall the on terms half the environment improvement is X-year and on back sort in sort material pressure from on just the assumed sort you versus basis better of stack. seeing? in is So thoughts in that of the have How inflation of of of comps sort balancing that coming you’re visibility your consumer supply absolute and a

Mike Longo

is Mike. this This handle one. the question. for I’ll Thanks Sure.

quarter was was be going going forecast first be model. to quarter and one the the it to certainly, to toughest So always and always the toughest

because I think We’ve we’ve of various it stimulus. sundry the notably, in that. and lived forms, most all disruptions seen through

to your for specifically wages that inflation. consumer inflation. for think we’ve And then anyone on don’t with have pay consumer set employment the We That’s that dramatically is has been consumer the experience. a all best-in-class certainly we specific that. to continue available. the less off So paying situation along to its But concerned guidance, were know that other has we product regards selection there improved, is a that and things are our the are the things about question, focus talking way improved The us, So our knew the dispute that will right? business experience embedded fact. in I about model, with the have of service is competitive laser increased the would and specific going omni-channel off. and that situation

digital online the what we’re of We We’re in plenty our in innings still upside business. the early doing of have stores. in

priced chain the we several said, the last situation that improves, occurred and I is competitive February. the some the product, of that, in Simply that disruptions As also some that the way all only the of some department moderate months, distribution over well, of know early and believe supply that because into innings. of in lost all critical we dribbled cases, stores January in

dry our And we it’s then for to that a taken that, inventory So, that a begun while be into certainty. We a we did position when has belief and belief will guidance, believe out. now. this turned that had improved inventory has that

has came QX. inventory most position million, Our in improved of by later which in $XX

we that, QX for up and well know that us believe will set beyond. So, we and

Alex Perry

Thank then helpful. the factored in incredibly promotional of sort environment And That’s guidance wanted what’s you. just I to ask terms the and of into here.

in of freight implies terms margins? product or or the are the That what you in of in thought improvement being Just seeing gross the Thank margin it margin, be sort helpful. the like terms versus guidance really promotions there in on seems of is gross in back half last would you. factored What year.

Mike Longo

generally our kick to The is clear a traffic Mike issue. it off. – an Well, is I not promotion This the to or again. traffic’s inventory and an issue, form is general is will Sure. either drives drive in inventory. need not what

inventory. fresh very got have We

have I million quarter. that As the said, in in $XX came late

So, we inventory know like. that’s what our looks Jared?

Jared Briskin

that’s have norms. promotional seen significantly right. environment historical think exactly the Certainly, over improve I we

manage far a high The thus seems be we retraction a inventory at are mentioned, So, environment manage us, have back very to seen ability again, not confident very Mike which our our as to year. and margin lot promotions in a properly of gives And promotional. throughout we composition, regard historically. that we and is very still not to operating marketplace confidence level to the have promotional significant what with seen a

Alex Perry

luck Perfect. going forward. That’s of very helpful. Best

Mike Longo

Thanks.

Operator

question next Cristina with Fernandez your Our line Please question. proceed Advisory Group. from the Telsey of with comes

Cristina Fernandez

wanted and go behind. my benefit Good you think mostly seems couple of and cited continuing second thanks morning back the like lap A to about other quarter. stimulus. to It retailers have I it’s question. for taking ask the here in

why And how there that share maybe an some would color quarter? be So, of the you impact benefited you in here year? think last can you second not

Mike Longo

at quarter seeing – weeks had a now you curves we other for we normal are Thanks this that is question. ‘XX. fiscal the first that but like that. the effect the much that the last and two And curves Mike. stimulus the appears more like are still are to a of look we our When look obsess Looking basis, back all retailers, those which week-by-week over on level sales of seasonality seasonality trends a year, more much past it

result, impact believe, we stimulus substantially behind us so is a the now. that as And

Cristina Fernandez

helpful. were second fourth question inventory. the inventory. there? then the clear is on Is to or trying And – quarter was now to is first you my quarter, mean or that go some more there through That’s on I behind,

Mike Longo

always did nearly some you characterize small like promotions subcategories have is inventory retail enough with the because like did regards that are environment, have one in didn’t fresh some items one Neither in, else as of began big were margin, We to or the have it as one QX. and to two other sell expected. have just and in promotion would new. those We QX, through didn’t everybody or you And QX. build going drivers I gross again, inventory. we QX, we just every or two to

promotions very, is really historically. will remind those we to but low still our – aged I material So be and don’t that very forward. material going you, inventory weren’t expect

Cristina Fernandez

last question, for And Helpful. perhaps then Bob. my

guidance three happened it SG&A would for next the quarters the the the imply about quarter, in thinking also first and SG&A, over leverage year the On what combined.

quarter of some year-over-year color more just abating in the – the you can I is are comparisons, progresses? pressures of the – first saw So, mean, share you a year cost of it as the kind function the do of or

Bob Volke

is, some lower a have built again, this pure which over course, be capabilities number, built And just we a we very Yes. of of have out have mathematics, more of is our the we slightly sales years. structure as couple last but expensive honest, to

this rest take forward and sales going able combine compare. see be those remember, against last be than through proceed that fairly go just knew leverage it’s what year gap a forward expect higher toughest be year. and will we have Do more do to easier So, from some of trend But a fixed move the that quarter close hard us start basis. that of provide we we starting positive year. of going we a better the to the to on with again, as got the again made is throughout year to we to and lower function full year what is first sales we a of quarter-to-quarter obviously going to be the as the get are investments last year over to QX, we we as the get Again, think that’s to was are go costs we that’s going to a with benefit year that. lot some to of But volume, advantage again, comp of we will are we

Cristina Fernandez

Thank you.

Operator

Our next Hardt Jim line with Crespi, with the question. Please of from Monness, comes Chartier your Company. proceed question &

Jim Chartier

kind constraints insufficient the X% or impact Thanks. on follow-up that? would in just in be question. quarter. I great. inventory. my Good from first In to quarter for morning. I wanted impact estimated inventory quarter, same, Thanks the Was Any of first believe to similar color than sales impact the you a greater fourth of taking

Mike Longo

Yes.

for came inventory the specific we do gained commentary early Jared, in some did have that? you – us as gain So, momentum. the quarter as impact quarter in, on sure, inventory did

Jared Briskin

Yes.

that quarter. big impact in we out of specifically the in due changes the fourth quarter to the So, fourth the was launches, inventory referenced [ph]

back the to due again, earlier ‘XX impact lack quarter. was inventory fiscal quarter the inventory of general first to a in The comparable

that a the saw quarter little believe bit impact we was than what fourth during part in of likely quarter. more the So, significant we early the

Jim Chartier

up you just your women’s And slides, that? then footwear the driving noted versus XXXX. What’s is mid-XXs and for apparel And an the in still business? Thanks. that opportunity

Jared Briskin

Yes. for us. We as opportunity see a women’s tremendous

opportunity kids that that see also felt the a We few We sure. we as consumer for over last for underserved us. years tremendous have

interacting are life put and have attention first digital in-store how perspective. a to, out and from We us, time plan ensuring foremost, coming is with product building a lot the to an and that they investment of for understanding

So, upside continue see investments. those we to make and do still there, will we appropriate

Jim Chartier

Great. Thank you.

Operator

proceed line with question your Benchmark next The question. Please comes Company. John with the from of Lawrence Our

John Lawrence

might those do am you question. prices, I years when several the Jared, small missing to I I taking may and remember – remember city something? extent may local be was – high in Did you there much gas that this for and Thanks the have people the to ago, markets some that drive phenomenon a more business? as stayed didn’t Mike, and had helped

Mike Longo

is prices, going rents. consumer food to higher our Certainly, higher gas by challenged prices, higher be

we and are very think employment overcome so that. have factors the strong. everyone that wages knows that, fact and again, that think that But we up is should gone that that their acknowledge the I

a worth more that the consumer, least that call more to think here so unbranded. is saying So, of might far, them in things be branded than and cash out equity I the that is has have place good product at think pretty one I brands in in

And helping retail beginning so strongly And those stronger brands a pretty for are branded play all of divergence there doing factors into see to a we retailer inside us. we in well. are are coming the think that

John Lawrence

last I any Great. demand first concerned, as new change demand not in the the that far of And as for question you those products the and seen – stuff have that customer in for is quarter change that? no is release assume all

Mike Longo

Yes.

the been wouldn’t we on as of demand industry, very you the has the specific of, the high also the very heat consumer all talked business the the demand that plus the competitive products And we which got that that drives – necessarily Monday-to-Friday launch but good. we about a heat is talk proud are the product, in we So, comes things course again, buzz strong awfully the in all of experience that because high plus categorize that’s, that consumer spec about the launch. have product because that of that on fact form

out of models, the things through are the rapidly think those as So, selling well. there, iconic some very of franchises

John Lawrence

Great. Thanks. Good luck.

Mike Longo

you. Thank

Gavin Bell

Sam. from Last question

Operator

follow-up question. your Our Please Trading. a proceed from with Poser question line Sam next Williams the with of question is

Sam Poser

what’s a allocations heat/launch – building sporting got One, sort – the high of brand of do you your alluded year-over-year years a from I how any you last and the or Two, of large what three. quarter? further X-year years Okay. that are you ago Pennsylvania? X goods on to it, you ago done end increase or X in of partnership basis And three, year? done a retailer the loyalty Pittsburgh, buybacks similar are foresee or versus looking are have is very yourself since your members out a to with product? X-year And that, that

Mike Longo

to you. lead to loyalty? Thank want speak you off do that and Bill,

Bill Quinn

Yes, absolutely.

So couple the year last loyalty a millions program has since grown by time. of this

last a loyalty that thing that we looked other sales Sam of City and substantial loyalty is of is through things about we there. very that both that, we and as added invented program The we have seen the to very sales, some drive are to go piece at the you the year, program, we then talked know, other isn’t And and portion often Gear there. our point good really seeing

average our XX% non-member loyalty example, For purchase. above purchases member

So, new all programs seeing we and behavior. drive are grow

Mike Longo

buyback? the handle to want you do Bob,

Bob Volke

Yes.

Jared. repurchases As sorry, – share far as

time the conservative towards periods the outflow, we those of go the the… periods open more share so have repurchases, we control windows, end through For less activity bit closed, the closed cash quarter, during over day-to-day windows a of get little of because we usually and windows since

Mike Longo

I wrote I questions, And on this some Jared, there and allocations down, Alright. partnerships with think then were other brands?

Jared Briskin

Yes.

an incredible answer last our partnerships few understood the see value our that our significantly reinforced very partners business and model is in years and will it. foremost, question high. So, brand and at all-time significant It are didn’t first and throughout I well this are

our We were high chain in services. traffic are significant our our to serve much have order in to continue ability possible heat and that and invest confident digital to we our driving will to very book our – and as as consumers, our products

Operator

the are further no it queue. to Longo for closing remarks. hand like to I questions Mike back There in over would

Mike Longo

you of thank that to participation We look we for soon you time. very teammates, proud everyone relatively we their recognize Thank getting what we holiday you Well, And back weekend. QX. We today. the together and everyone’s and and much. very safe this getting results be appreciate have efforts, try our are to forward accomplished, every

Operator

participation. Thank teleconference. does this today’s conclude gentlemen, and you for your Ladies

You may disconnect time, and lines at a wonderful your this have day.

Gavin Bell	Vice President, Investor Relations
Mike Longo	President and Chief Executive Officer
Bob Volke	Senior Vice President and Chief Financial Officer
Jared Briskin	Executive Vice President, Merchandising
Bill Quinn	Senior Vice President, Marketing and Digital
Ben Knighten	Senior Vice President, Operations
Sam Poser	Williams Trading
Justin Kleber	Robert W. Baird
Alex Perry	Bank of America
Cristina Fernandez	Telsey Advisory Group
Jim Chartier	Monness, Crespi, Hardt & Company
John Lawrence	The Benchmark Company

Hibbett (HIBB) 27 May 222023 Q1 Earnings call transcript