HIBB - Earnings call transcript Q4 2024

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Operator

Greetings. Welcome to Hibbett's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Gavin Bell, Vice President of Finance and 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 or home morning. our morning. and that section. prepared on is discussion deck at slide The the to the we help have remarks. may News page These the you, this slide the Please in will our materials Relations under you at link Events found bottom investors.hibbet.com follow along refer

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a extent the comparable of find filings with on Some earnings could may website. other measures We the Exchange GAAP are non-GAAP contribute on have more to call, differences noted such morning measures the and refer Commission. cause Slide you financial you the the for our are Securities issued described of Form to in Also on to those most on XX-K X information. sources the reconciliation discussed directly that and to been news and and report or presentation release factors company's the annual this the in

days. a Because -- March remarks archived today's to it the is call on limit are believed and this I'd information, accurate and of Merchandising; XX replay of Officer; participants Mike Jared Inc. and time-sensitive policy over as this President webcast turn Marketing XXXX. to are Senior I'll Longo, like of Longo. information management's date, during call conference Hibbett President President this Vice call of President, Operations. of Vice to Quinn, Volke, Bill period of of nature the and Financial Bob based conference Lastly, President Mike Vice out the Officer; Vice Knighten, Executive Executive Ben achieve The point and Digital; Chief understandings to now of Senior this XX, the call Senior on Briskin, Chief that the to

Michael Longo

and welcome the Hibbett earnings morning, Good fourth to quarter call.

quarter following another Slide for especially company performance fiscal you profitable setting of $X.XX those annual well operating Overview. I'm a 'XX reach entitled Hibbett year, new the for For the record. slides, of X fourth delivered and 'XX, to a the growth. fiscal billion sales and sales capping in on solid proud financial We're off of surpassing on year

our discretionary their spending. a distinct patterns. of trend-relevant range variety that line are Hibbett product compelling the and products worked and spending items is current A in We've did quality an we our of Notably, retail execution year, these Throughout many with job team as the of achieved has have prices inflationary pressures what we win to still being offer in our brands to advantage challenging higher are, outstanding selective mix. therefore, be hard strategy continue continued competitive to facing a on are Consumers essential environment. in and consistent more share. market for with results of

sales, boosted were which results expectations. line the quarter with fourth by Our holiday in for were

our continue advantages key are to distinct brands. best-in-class for superior in of competitive be underserved driver shopping customer 'XX. Footwear our that store sales, strong experience, to relationships Additionally, service in our omnichannel continue the to markets fiscal market us allowed strategic and gain vendor especially premium share placement of sales

customers. loyal also to continue had fourth full Hibbett During quarter new our of programs. we Nike's generate a product which schedule brand connecting loyalty connected launches, the new and under our was partnership quarter, This excitement first robust the from

an enhanced online. of now when one benefit they purchased or whether customers loyalty retail Our Nike experience from products stores and our Jordan in

programs customers, traffic been adding our our extremely have the overall driving and platform. stores shopping with our experience to also to loyalty omnichannel value popular more and Our

Looking expect fiscal share. trajectory we to 'XX, and gain same the to ahead continue to follow growth market

to infrastructure, affect intend reflects sales Our short-term upcoming to year to profitability. our time, investments we the make for execute our our ability the significant guidance same which testament confidence, will our At strategy. capital proven in

sustainable, value for as new underserved we XX term. goal intentional growth. long However, investments XX ahead. with to enhance and adding markets We'll stores We drive in profitable also always, investing be the in a these to proposition strong the are about year further our add believe will stores

platform customer experience. key to continue advantage Our will competitive the remains sophisticated functionality overall and omnichannel on a providing and latest focus to improve we technology the

for call facilities outstanding unwavering logistics dedication loyal to their Jared, the environment. to with challenging a work to for represent integrity across proudly platform, turning our X,XXX support members over store commitment our the they team nearly our of our Whether hard I'll Before now Jared. and stores, I'd omnichannel approximately like thank customers. or over center, the across organization Hibbett our an our in call turn support the the to XX,XXX brand and

Jared Briskin

This holiday and comp in Footwear quarter. inventory end opened of the the patterns. were to fourth with January. quarter weakness be and you, the Good digits Seasonal of both offset to strong single down part comps Apparel also elevated during Slide seeing in in Sports activity were faded low negative and with high the the due quarter performance market. continues trends for Please with warm December the but dry affected entitled the XXs, down was quarter, by to digits. of mid-single some Mike. the to our of strongest X weak start turn and respectively. weather some category at Team Apparel Merchandising. and season, due to sales latter lifestyle, we're Thank The launches was Strong a promotional running. morning. basketball the in in categories levels

performers. Specific by increase declines in XXs by driven low high high be single-digit men's digits, digits digits. footwear mid-single single business high single down down strong Kids' in down a apparel, was accessories apparel affected Women's comp up was footwear low up footwear in low footwear, down was overall, While with apparel, Kids' business mid-single the XXs apparel, to to digits. a was single apparel challenge, a down offset were digits. was Men's was in by performer, single-digit in our low continue and and with sales results. while best decrease socks digits. Women's mid-single

year of the with high-teens in inventory from a compared levels quarter ended 'XX fiscal well we support now the end to expected, of Inventory of hand in our our it cover decrease fiscal the financial to to I'll as over partners as efforts 'XX. brand the in third teens aided from As goals. reduction key declined Bob achieving low end fiscal results. inventory Promotional 'XX. our

Robert Volke

to Jared, of results. Thank X you, refer overview an morning. good QX for Slide and Please

to call a quarter fiscal figures I e-commerce million and comp. current a comp and fourth City financial extra XX.X% net X.X% very fiscal XXXX fiscal for a Total decreased a on comp exclude X.X% versus this comp prior quarter overall year increased fourth Gear Please As quarter XX-week both of XXXX the generating Brick-and-mortar same compared in reminder, Hibbett of of had the the quarter, quarter year, like all fiscal the last to was fiscal from 'XX 'XX. we sales actually week. also performance includes sales XXXX. million XX-week Comp was quarter increased $XXX.X the fourth sales to year. fourth fourth results declined quarter, X.X% are fourth strong a compared sales brands. while year the the that sales the out to period that consolidated $XXX.X year's the that quarter. would X.X% reported Overall and basis for prior in note

million sales XX was the E-commerce margin shrink XX.X% served 'XX. per quarter of or the X.X% 'XX in XX.X% cash, product year's occupancy, for our to sales of $XX.X equivalents consolidated fourth have the XX.X% $XX.X Gross February condensed Net the freight quarter XX basis Rate was unfavorable approximately and diluted on Net over $XXX and $X.XX year logistics fourth approximately of store percent a was partially This on during logistics of the of million debt million a net by of on in year. base the sales year-over-year quarter the common favorable is basis a end the sales similar average the in decline increase driven of quarter primarily approximately basis as compared balance quarter. a margin of quarter, fourth average operating sales fourth XX performance. amount with for relocations costs per million point of improved fourth in ] XX net signage. projects the inventory in compared occupancy XX fourth including XX.X% of store basis sales to related last sheet by fiscal benefit beginning point higher from XXXX, generated or by XX approximately margin million net to growing on current was points. during quarter quarter, or shipping, XXX store stores store or the fourth lower the of in fourth points were fiscal development $XX.X offsetting compared the XX.X% points, attributed by initiatives wages store cash is in increased remodels, the X, in We net compared SG&A the of on total approximately $XX.X product were At million. points inflation, prior new of and million fiscal states. for fiscal of last million data fourth prior dividend quarter of fourth quarter fiscal to ended base available the capital basis X,XXX basis, diluted was XX% bringing expenditures approximate to share [ $XX.X increased fiscal investment accounted eligible quarter by point share the 'XX last fourth per projects, processing the XX $XX.X $X.XX quarter ended $XX.X opened various million, sales 'XX. decrease $X.XX systems of There unaudited to associated approximately the ongoing new increase the $X.X fourth quarterly the of basis costs an during approximate net fourth in and infrastructure and line our store We of in year, shares costs weeks weeks store favorable development, quarter approximately $X.X outstanding with We the XXX in end XX net fourth back-office XX, approximately increased expenses and million driven with 'XX, unsecured this were to year. the outflow of paid in credit. net of million reflecting technology stores, fourth income the of X XX% was result recurring compared primarily investment of January cloud-based This and no and last share year. the the the sales amortization repurchases technology. Depreciation new a $XXX.X 'XX same comparison and and -- with the shrink to for quarter of basis of for XX.X% at new of of quarter years. for year XX.X% quarter. income XX Capital period total

approximately results. XX.X% lower equivalent Slide of in fiscal declined net approximately versus while fiscal comp and year-over-year to 'XX. year. of decreased basis to XX Full an net year This XX average store year. billion, last costs gross the is sales occupancy compared and on 'XX weeks of points X.X% margin margin sales sales for was comparable year decline. the of X.X% decline The comp the discuss full approximate primarily gross e-commerce XXX basis brick-and-mortar sales XX.X% The XX $X.XX due Total product to to weeks year prior X.X% versus margin sales full increased Moving higher X X.X% of point net to points. in XXX basis was sales increased

$XXX.X million net million advertising. in were with remodels 'XX. in $XX.X diluted Net We of million in points, points year. million data were result to XX% compared professional of freight, in sales 'XX to share $X.XX of On costs Current or wages the fees was favorable year of processing XX.X% and XX 'XX. improvement basis year by predominantly per was costs, XX weeks XX during related approximately of approximate $X.XX generated ended $XXX.X fiscal net $XX.X of compared a by X, million the sales prior capital as compared compared XX basis lower favorable store sales. expenditures and for increased logistics relocations, million was initiatives, new of or X.X% the including points by ended or fiscal the February expenses approximately the and operating fiscal basis weeks Freight to percent XX in shrink approximately the per were basis openings, sales 'XX. upgrades. $XXX.X 'XX $XXX primarily XX in expenses positive current income fiscal January X.X% favorable for partially Capital store increase income expansions, 'XX year-over-year is net logistics store The of side, and offset or XX points. SG&A by and we experienced net diluted technology share shipping was to

year, of For by net a comprised and locations XX count units store of our X new increased XX the closures.

total count by X,XXX million. standpoint, of $X.XX fiscal the sales the approximately store week the quarterly at 'XX our full diluted repurchase shares full product throughout $X.XX end paid fiscal 'XX We net to approximately total for of to the under stands of a of outflow quarter million. plan $XX.X fiscal cost to a quarter approximately million. impacted This by fourth and $XX.X share 'XX. On On $X.X fourth and dividends at resulted $X.XX at income to week contributed million impacted net year. $XX.X full recurring approximately week X $X.X in in $X.XX. XXrd approximately basis, repurchased in Our we the EPS total X.XX year million a XXrd year incremental million both a

change of change gift addition, fourth the to to is EPS a of discuss full the million card insights. estimate $X.X the prospectively. applied the turn our historical $X.XX approximately to estimate by In year impact over Bill quarter This I'll was was to the call revenue we The outstanding recorded $X.XX. consumer pattern in to supported cards and gift in due increase fourth impact Quinn a was approximately now quarter in breakage. redemption

William Quinn

Bob. digits. you, loyalty driven ticket sales Thank single In average more QX, was high growth. This and shoppers grew member by

full retails energy high was a increases single grew shoppers digits. to in quarter loyalty shoppers double member we ticket. partnership, program, Customers first in our digits program under connected member Higher the New average was low unit the loyalty Hibbett average and with our connecting pleased existing There are This grew QX. the we of around drove new and programs. Nike's have results seeing. lot receptive are been and

delight which points. purchase of across continuation seeing and connected well We will favorable as membership we engage In are the sign-ups as behavior. healthy 'XX, the in ways advance touch omnichannel our FY all members

the online more footwear program and loyalty In ticket increased quarter drove in driven buy sales. services, During of online pay all QX, in XX.X% versus traffic, conversion buy XX%. XX% overall utilizing approximately we by versus growth channel marketing our online customers our now store, up later. efforts investments help fuel QX increased also loyalty average to styles, for including pick represented made last online acquire and sales more Online total key online, year's and total digital E-commerce year. sales customers. last sales investments in Those QX,

our the customers through keep continuing Lastly, on overall are are business, a to pulse we how feeling.

last to athletic This quarter, and spend customers apparel on intend footwear more than year.

expect Also, FY cautious have their 'XX. Based consumer been inflation. tax customers research, a has on we and going concerns from elevated continue our around selective size more of and the into there uncertainty customers timing to However, some refund. around

hand XXXX back I'll discuss the to guidance. to Bob fiscal Now call

Robert Volke

fiscal challenges ongoing to will and volatility challenges a contribute and We're weeks traffic, in of drive interest we XX Please X, number elevated, fiscal forecasting about now in fiscal promotional use 'XX. impact XX complexity selective in moving guidance. February talk forward for in These and experienced note the X, potential to pressures, we selected These to wage faced XXXX, results. the ongoing the when to 'XX. will Slide 'XX that economic and continued XXXX versus business the 'XX we just The cautious weeks business conflicts. fiscal on end fiscal of continue the and geopolitical include more remain inflation consumer activity factors our rates the to comprise

compared XXXX weeks Our comparable be year in will fiscal will fiscal [ from selling 'XX, our flat fiscal estimated Through XXXX the shift to be the in XX ] sales total transition for fiscal are the X% anticipate to with to anticipated up fiscal XX-week guidance full impact year fiscal 'XX. the in is year approximately follows: 'XX a 'XX fiscal be year XX-week material as back-to-school season. full for We most net in 'XX through sales to to of a X associated compared results.

expect of will We portion year. sales land a in our second this larger quarter back-to-school

sales. the growth X-week e-commerce revenue adjusted sales low expected to the comparable range to year single-digit to XX revenue Net single store new approximately to for flat from will for is XX shift portion On sales release. Total press is table in of sales expected digits on side, sales comp the the be morning's net to The the page this flat also comparable quarterly high range. are third and 'XX weak Both for mid- are the have and low in be Brick-and-mortar to year. a single is negative anticipated smaller to of negative of fiscal full quarter highlighted total comparable shift the be impact stores. on digits. back-to-school the to expected the flip last e-commerce reported up

improvement $XX headwinds a and gains have comparison promotional units quarters. Gross peak to XX sales, lower the increase basis XX.X% anticipated the to and an range to by borrowings store the expect this percentage signage believe $X new year a $XX to basis factors store an of transaction less of XX.X% includes to in net fiscal fiscal the full growth for expected of full in are to drive line using incremental incentive store in will range of is is XX, projected fees of net we the than share net year, include Expected processing store XX First seasons. experience. approximately timing approximately environment impactful distributed SG&A although costs. remodels, anticipated year to to net new small basis to average of be leverage outstanding increased a the anticipated technology Capital to margin XX remaining range largest in more average be XX for estimated ] in of the of there be in by with gross be to on be million [ tied sales to of rate be gross offset of we selling will million. inflation, as evenly approximately quarter across new in of up to new points credit of of share once XX range is be relocations, due is to XX and lowest anticipated costs of occupancy. much mostly to to points to sales. in growth, These decline partially borrowings share processing Expected [indiscernible] logistics, projected in of freight X% in per $XX.X for are with anticipated of expenditures tax expense $X.XX to results. We be the daily expectations $XX.X comparison investment the be and wage to points estimated 'XX. profit expected full estimated to expected approximately XXX million, expense are improving margin 'XX. in debt is sales. Operating be [ 'XX net and consumer million fiscal growth, to fiscal the comparison our between XX.X% data Interest 'XX peak is XX.X% ] It basis year setting [indiscernible] receipts, to is Data weighted sales. the diluted compensation, focus SG&A earnings Diluted points net investment full solutions. to of cloud-based the net percentage X.X% on range year profit to

include recurring questions. capital noted the remarks. That allocation dividends concludes share the previously. line addition to capital quarterly Operator, prepared repurchases, Our please for to strategy continues expenditures our open in

Operator

Seaport [Operator Research. Instructions] Our first question is from Mitch with Kummetz

Mitchel Kummetz

I of Maybe believe per give you but release, sales you've could the fiscal I your given the the Do on of in 'XX breakout past, [ the ] percentage outlook that? missed by kind quarter. you comments have year?

Robert Volke

kind this We of Bob. year. it's out pulled that Mitch,

of within think exception challenging. little I it the But week change and the be we relatively the a gets what deal on after QX expect with I far year. to quarters there's back-to-school. We QX last shift, similar of huge prepared with think to bit I mentioned as the what comments more we saw don't a as amount still

end of kind there will that of right QX, impact at the have QX, effectively. [indiscernible] be at the beginning of right You

Mitchel Kummetz

then And footwear the side, quarter. mid-singles down this Okay. on

seeing last I'm have I those that was How else up explain are curious might quarter, low X single. periods? seasonal softening? in between of do you that much the that anything think versus assortment you how been sequential it

Jared Briskin

at ] the against just were This of footwear, foremost the were [ and parts of obviously, first and really somewhat quarter. is footwear really last the We the and a of very weakness had things the something for. [indiscernible] some what our the was January the driver quarters. than think And real in they first a consumer the we've comp, of selective. of of was some in super the of the foremost. happened pretty significant so and December selective the end strong driver repetitive out being we even more and Once have results through. But was Jared. was clear cut for towards of last we to challenge it launch been the primary how up got were here Yes, got week they I assortment we especially business Seasonal quarter. still holiday, calendar seen end been in couple unfortunately, and That

Mitchel Kummetz

my quarter, then the of kind you is any saw at The of just maybe combined the January how weakness or And November, of into a quarter there that. about carried parse maybe maybe maybe that over question, the by as curious performed end versus way And can [indiscernible] talk month that last December. end to of at weakness follow-on that I'm is some the you February.

Jared Briskin

Yes. I mean, and on end intra-quarter, holiday, felt obviously, out certainly, us strong. we December December period, good comment our January. and slow got And again, we materially don't started but down to time into we pretty of for really about and particularly the of November things the business once

Operator

with Our is next Justin Baird. question from Kleber

Justin Kleber

to the in just was always the just card And walk change through -- revenue related then I correct. Or first, the to those can gift again? not You got you that sure Bob, cited, that the in those in guidance? just numbers want guidance? redemptions, I was make

Robert Volke

Yes.

the dollar $X.X was absolute of revenue So million. amount of impact

Let back I make and me go here. correctly just [indiscernible] hope sure,

said to just some much but not felt obviously, were mean gift as into I patterns Again, card. and member that underrecognized at historical acknowledging we So in that I too jump, looked earlier, we get

guidance, impacted the quarter $X.X we're already time the our working that. by So impacted year in the about about million by $X.XX. on results third QX the And $X.XX, and full we quarter by was recorded issued

we fourth we that So into solid estimate quarter. about when the a going pretty had

Justin Kleber

quite inventories view that promotions this Obviously, within year? moderate. color not what And then year is the the guess seeing Is environment, And the to will what inventory seems upcoming you. in that only would Just Got you I promotional. any channel? but gives quarter your there promotional be Okay. also fourth this the going lessen guess, helpful. confidence you're that just across I

Jared Briskin

Jared. Yes. it's Justin,

a particular, a mean So us to get the foremost, Again, 'XX. fiscal year rightsized back have in last team the our levels to the of in [indiscernible] half I first X throughout of worked in year. our incredibly hard and our inventory position and inventory parts.

So great feel about we that.

and elevated the like that So [ in likely work while from where higher, of some on But feel that's some inventory the that inventory a where was the full still selling how be vendor result our of tons. we're still We less getting inventory. there's a markdowns done, will be marketplace Based inventory ratio has support have we ] become still from the is, as marketplace. have we're clean the the significantly promotions competitive dealing we'll price might standpoint our community. will with much old some in there

Justin Kleber

consumer? the on profitability? changes profitability would enhancing you curious about bending That's to for me going talked the your just you are curve some be you on guys, can visible maybe technologies, these great I the what longer the to last And Mike, to then color. term, was to, the -- on specifically of the question customer-facing -- And investments just investments when you expand expect alluded specific these

Robert Volke

the stuff of the experience of continue a we've is some [indiscernible] in couple front association see certainly way. think this that which -- a would the Bob, couple stores, I of got the is Yes, is you different by and there's aspects. This the different be we in digital one house, our the of efficient. technology There's to more

Another big done chunk of back we've in this is what the office.

So as of our upgrading more financial, we've systems added sophisticated we're now well as systems. resource merchandising human all

fiscal in We're ago, some putting that of we've over, those XX from kind for 'XX XX forward. months get is So invested of the say, benefits in [ the ] things some extend things the so starting place, process mode. in that to still but we investment of expect in we're that some will to expectation leverage

Operator

question next is from of Perry America. Our Alex Bank with

Alexander Perry

first the to maybe down wanted within Bob. of flat to your on guidance the question comments, through some wanted to of year, the up sort just was digit comps follow I just I that comp low clarify asked,

out similar So XQ do last XQ quarters about in better is that pull bit you sort and to comps forward spend impact a and the guide say where XQ is [ a that the to due maybe worse, year, that imply XQ we you're that would for sort of those thinking to how of that year? flat then that as of those ] full quarter? Is get bit

Robert Volke

the percent I it's that into more fall of think quarter. sales about the

really of early going more part I So some your really numbers wasn't [indiscernible] far to year referring last as you've those I to seen just as back at revenue there's the question in in end future. specifically is believe [indiscernible] of the percent that alignment to across. spread obviously To shift looking I how revenue with

Alexander Perry

you then bit seeing just And Maybe I some That. XXXX, in store look for of a opened If seeing little more. stores bit sort ] as these are stores you the you. your talk concentrated? previous in ramp sort those a Got of the cohorts? terms about openings about to of new new wanted in the you existing of instance, are are at markets where Are store markets? what guys new you same ask for infill talk of about Maybe way performance? mostly the you're [

Jared Briskin

and and tend working things incredibly and We with year ramping this regard really strip. more a is of year. target then teams with the Las that open, market And of on that permitting Last our infill, new over year the year, on been XX Alex, well. was the this take ago not the inspections, processes next markets they're It's with that look, got market, we and stores rest getting little time. performing. our Vegas timelines With to Yes, challenges pleased redefine presented grow we've chain. as still to faster The market years, feel it again, hard the change XX nature very to to to [indiscernible] [indiscernible] absolutely. the opportunity has one double grow challenge, to then some number the we And frankly, infill. a stores. exceptional. is our we've said than we've delays pleased the as years X way And seen we've the with a up the new over new But one significant performance them very, has can Jared. before, we're historically, they're had

Operator

next Fernández Cristina Our Telsey in question with Group.

Cristina Fernandez

made launches in some ask where it to trends that the the the product [indiscernible] in quarter remarks mentioned hit wanted I the with about customers. of you

in about of ] better how newness year, level transit in and are that feel brands do doing So products [ this coming more currently? access or we the

Jared Briskin

Yes.

separate I a think to the It's try little I'll bit. question So -- Jared.

with inventory we points, where first to think great are. we've our regard feel our with Obviously, vendors, allocation, reduced about the foremost, access I we partnerships XX%. and significantly,

We higher can concentration much of we quality about but products. expect a level, that product at the the high maintain inventory and best with this

things innovation the will So throughout some slower still Still things results or team nice year. those little than some scalable that we overall in determine. are in, those whether from pipeline, of trying feel certainly There more going some feel has to of come seeing things more that are about we're invested an bit that. things like. and we're we that not, great a And there's are the

a So bit we're some to to in feel starting the kick of innovations more. start little

some aggressive and of trying things in then get have more that part good year can as of to and been things this our tests year. we find really latter into the that has into investments hopefully those next get we scale and new team We make on we can in,

feel So starting faster. go are Things materialize. key see partnerships vendors. innovation we'll our But positioned we where about all like again, to little bit with pipeline and to are We'd the a good the

Cristina Fernandez

side, level you in feel do for then been many inventory How of the that's quarters And [indiscernible] on about category? that now. stabilization potential the there, apparel

Jared Briskin

Yes.

inventory worked I shape, in apparel is incredibly think that. in teams overall, great at our hard

the in inventory level confident very is and also the the the and marketplace [indiscernible]of we're of So heavy. inventory

but get to our materialize, we businesses as denim [ feel become year. examples can for fighting we're us significant starting our streetwear and drivers as particularly that, So half seeing we're business in ] some the things that into some absolutely still we second in of of the

Cristina Fernandez

comp incentive investment break one or Is chunks? the you And any maybe stores, little increases. basis in to way the to if the about the biggest ask it are the of if more sort point increase? for the What Just more, can. can category, us a I there what's wanted to down can more? within you I SG&A it's XXX XX understand bucket

Robert Volke

this Again, Yes. Cristina. Bob, is

with biggest at still at again, riding of we're So look kind lot wage the of you I headwinds think, level. is when a store inflation the dealing

to in we slightly number that, estimating somewhere near close X% relatively going as that be forward. the we So wage is we're year probably We where think a of came lower off maybe to of that than increase. move

we're for still is accounting that that obviously So something going forward.

expense. The in systems. be been other technologies invested have like we course, went because like you systems, through set internal for things this our processing targets thing why cloud-based said, capital, in is our would depreciation. piece we systems of accounting might some is pretty of purposes. merchandising are I and those ERP that to operating did last those the run are the bringing And costs. and data mention SG&A aggressive and investing, That's we dollars to through bucket, in ourselves refer rules, you our of some back-office things our But Traditionally, compensation and that things the

expectations. live We up those have obviously to tried to

a of putting we're We goals back value with much again, We've to more last talked a a of restructured compensation. us we in the also lot make into incentive why have had aligned that, what targets little bit group operations our a are. full couple the about store shortfall and of within years, that's

that for additional some So we to some have going do be feel employees opportunity compensation. the upside incentive there's to

Michael Longo

Mike. And this is

couple by on And largest So P&L it's the goods labor we'll the followed sold. add I'll from expense but a of of second be on cost comments aside side. Ben, the

more occupy than it's a our does experience. it cost, lot just it's of also So the But time. consumer

to So Ben, this? add some want do flavor to you

Benjamin Knighten

-- That pace sales will the dividends expect current the do store task are used train the consumer. our continued allows real are That the first even our Mike of but our also That Knighten. think the we of devices year, of we we wage having the year. our this increase have to to additional to that's day, with end access the improves stores. and the contributed about will that Cristina continue in throughout life, in year the have our one, in of of it's tag in one their around consumer and right the the last day-to-day to platform quarters. devices extending at same experience a where tools of in ways. mobile Ben But continues that customer. it we floor and couple stores couple and to a To kind things. their to as to of Bob to that our retain X [indiscernible] wanted to wage year customers see in environment, And future, but said, to and associates seen saw Yes. At QX the continue really is do and in this particularly some what has associates investing different the experience. be help the have in we store includes also simply includes improving pressure ways I'll in while on, That do to it really it but and experience, taking a the has the soften hire, in associates us an so with customer really productivity, mobile us Number environment. form more on that we kind to really focus moving work it's and us that a allows helped And has in and similar do also bit future, the been. the will We we of productivity

Operator

Our with next question Trading. William Sam Poser is from

Samuel Poser

please. handful, you were going us by I'm the -- a have stuff. easy to with give comps the just Jared, start just months? Can I what

Jared Briskin

November, December felt good by really, driver... January really month. We and very it. again, were the were don't as give December, And of I primary about pretty and we strong. comps difficult But the said, the We pretty last week

Samuel Poser

like mean we are to low falling last X weeks? off comps in to talking that down I about doubles mid-single-digit

Jared Briskin

would I plus flattish. against the XX. more Again, we're say up

it's So hurdle from get certainly comp to big had over a a standpoint.

Samuel Poser

Flattish, went [indiscernible] it Okay. and then

your as comps? good, omnichannel Is you help more to sort Your e-commerce store of can very guiding comps good, the to aren't business there store the doing you're to drive more into but continue. your digital work using is be stores people for the and that

Michael Longo

you Short want answer do a yes. is little more give Bill, on that? to detail

William Quinn

Bill. Yes, absolutely. This is

definitely a and we a traffic that you omnichannel that traffic a increase. can pick good attachment. increase, few continues buy the to We and of yes, to in drive So that up drives I'll definitely stores. examples, online see store lot saw give

So that's one example.

investments program, XX% and over significant our program is Our drives We're in largest that loyalty omnichannel of that. sales. by making far our

well. terms store of and acquisition So as well in as will that traffic as retention drive

on in and that process particular, thing launch that and mobile, year then Another around around investment following this better make our making day in day. we're to even the is X how

So to that's another investment drive making that store we're traffic.

Michael Longo

the Then [ innovation without Raffle some you too might away. want mention to of ] in much getting

William Quinn

Certainly, Yes. -- unsold day on X, the depending launch, Yes. amount of is there on a certain items.

marketing, our we're are going sell-through following the day. as that increase so that to as new day processes on well in then and with customers, And X putting new

that, important something that's and in. still we there, that's There's we're the process. very but on a customer So more come it's something invest to to friction going have that our exciting around customers launch lot of innovations and to

Samuel Poser

business, around earnings working moving are not there of any you the -- involved a this then your to -- I you I And wonder, but -- related -- dates. is And M&A now? mean lot are directly or in just is right was with there

Michael Longo

question, But those aside too year, we up. backed entertain went normally a the Last probably year, we my of from it as data part don't and get. was this moving earnings week We of to We we collect state were decision. early sorts additional first questions. of trying what your the the to

origin it. the was that So of

Samuel Poser

originally had that then on the Well, it seemed I XXth, going to mean, and be towards we it XXth. to heard was the move

So trying understand. to I'm just

Michael Longo

changed I my mind. [indiscernible] because

Operator

turn our conference to over end of reached like the closing We the to for have session. I back question-and-answer management would comments.

Michael Longo

our hard you always say as and We people and work good hard talk in to the get attention do who so in everyday as a thanks today. here we worked our business about opportunity in store They're much time we your their our work we to job reason distribution associates center. do, the and the so people in center for the who stores, sales very support consumers. appreciate can for to the and Thank the

QX. you look you We So again. thank to forward seeing in

Operator

conclude will today's conference. This you. Thank

lines your and thank at you disconnect may this your time, participation. You for

Hibbett (HIBB) 15 Mar 242024 Q4 Earnings call transcript