Hibbet (HIBB) Changes its Corporate Name, Initiates Dividend

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Hibbett, Inc. HIBB has decided to adopt a new corporate name with a view to better resonate with its expanded assortment. Effective from Jun 24, 2021, the company changed its corporate identity from ‘Hibbett Sports, Inc.’ to ‘Hibbett, Inc.’. However, the company’s trading symbol remains unchanged.

Management stated that over the past years, the company has evolved its offerings from sports goods to an athletic-inspired fashion focused assortment, thereby providing it with much diversity. The company’s new corporate identity better reflects such transition and also highlights its consumer-centric Toe-to-Head focus that caters to trending footwear as well as establishes cross-category connectivity with apparel and accessory offerings. Although the company will continue providing products for individual as well as team sports across several stores and its omni-channel platform, it will emphasize on providing a compelling collection of athletic-inspired fashion footwear, apparel and accessories.

In a separate release, the company informed about its decision to initiate the payment of quarterly dividend. It declared an initial quarterly dividend of 25 cents per share on its common stock, payable on Jul 20, 2021, to shareholders in record as on Jul 8, 2021.

The commencement of the company’s first dividend program indicates its commitment to deliver long-term shareholder value as well as confidence in its financial position and ability to generate sufficient cash flows. Apart from this, the company is undertaking share buybacks. Last month, the company expanded its existing share repurchase program by $500 million, which led to $800 million of total authorization valid till Feb 1, 2025. Further, it repurchased 7,469,387 shares worth nearly $201 million on May 26, 2021, under its earlier share repurchase plan of $300 million.

While the company is encouraged regarding its efforts to boost shareholder returns, it is also confident about its strategic growth plans. In its last earning call, management highlighted that the company is committed toward expanding assortments, boosting supply chain capabilities and augmenting consumer experience across stores and online.

From the athletic brands, the company is witnessing strong demand for athleisure, loungewear and performance products. Also, the company’s fashion brand business has continued to remain strong. In this context, expansion in denim has been encouraging, while collections with strong connectivity to sneakers are doing well. Moreover, casual shoes as well as slide and sandals have been doing well. Markedly, favorable demand trends and strong merchandising strategies favored the company’s performance during first-quarter fiscal 2022, wherein it witnessed triple-digit growth across branding apparel, fashion apparel, licensed apparel and accessories.

Additionally, Hibbett is undertaking commendable efforts in the e-commerce front. The company has been boosting omni-channel capabilities such as buy online and pick-up in store, buy online ship to store, same day delivery and mobile app services to fulfill online orders. Strong online business aided the company’s top line during the first quarter. Apart from these, the company has been progressing well with its loyalty program, which is aiding customer retention.

Wrapping up, we believe that the company’s well-chalked growth strategies, rising online sales and robust demand conditions will continue aiding its performance. In the last earnings call, the company provided an encouraging comparable sales view for fiscal 2022. The company expects comps to be up high-single to low-double digits, which suggests an improvement from comps of down low-single to up low-single digit predicted earlier.

Shares of this Zacks Rank #1 (Strong Buy) company have skyrocketed 270.9% in the past three months compared with the industry’s rise of 26.6%.

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