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SAFE HARBOR LANGUAGESAFE HARBOR LANGUAGE
In order for us to take advantage of safe harbor rules, I would like to remind you that any projections or statements made today reflect our current views with respect to future events and our financial performance. There is no assurance that such events will occur or that any projections will be achieved. Our actual results could differ materially from any projections due to various risk factors, which are described from time to time in our periodic reports with the SEC.
In order for us to take advantage of safe harbor rules, I would like to remind you that any projections or statements made today reflect our current views with respect to future events and our financial performance. There is no assurance that such events will occur or that any projections will be achieved. Our actual results could differ materially from any projections due to various risk factors, which are described from time to time in our periodic reports with the SEC.
WHY INVEST IN HIBBETT?WHY INVEST IN HIBBETT?
Smaller market focus creates competitive advantagesSmaller market focus creates competitive advantages
Attractive store modelAttractive store model
Significant untapped market potentialSignificant untapped market potential
Track record of sales and earnings growthTrack record of sales and earnings growth
SERVING SMALL TO MID-SIZE MARKETSSERVING SMALL TO MID-SIZE MARKETS
634 stores in 23 states as of August 4, 2007
Target markets of 30,000 –100,000 in population
HIBBETT SPORTS IS NEEDEDHIBBETT SPORTS IS NEEDED
CustomersCustomers CommunityCommunity
VendorsVendors LandlordsLandlords
STRATEGIC POSITIONINGSTRATEGIC POSITIONINGNationalNationalFootwearFootwear
ChainsChains
NationalNationalFootwearFootwear
ChainsChains
LocalLocalFull-LineFull-Line
IndependentsIndependents
LocalLocalFull-LineFull-Line
IndependentsIndependents
Extensive selection of local andExtensive selection of local andregional merchandiseregional merchandiseExtensive selection of local andExtensive selection of local andregional merchandiseregional merchandise
Strong local advertising programStrong local advertising programStrong local advertising programStrong local advertising program
Broad branded product offeringBroad branded product offeringBroad branded product offeringBroad branded product offering
Sophisticated systemsSophisticated systemsSophisticated systemsSophisticated systems
Small market focusSmall market focusSmall market focusSmall market focus
Team sports emphasisTeam sports emphasisTeam sports emphasisTeam sports emphasis
Customer serviceCustomer serviceCustomer serviceCustomer service
MERCHANDISING STRATEGYMERCHANDISING STRATEGY
Broad assortment of quality athletic Broad assortment of quality athletic equipment, footwear and apparelequipment, footwear and apparel
Brand namesBrand names
Emphasis on team sportsEmphasis on team sports
Local and regional productsLocal and regional products
FOOTWEAR FULL SERVICEFOOTWEAR FULL SERVICE
TEAM SPORTS – FULL SERVICETEAM SPORTS – FULL SERVICE
TRAININGTRAINING
PRODUCT KNOWLEDGEPRODUCT KNOWLEDGE
COMPETITIVE STRENGTHSCOMPETITIVE STRENGTHS
Consistent strategy for 30+ yearsConsistent strategy for 30+ years
Small market “know how”Small market “know how”
Geographically concentrated store baseGeographically concentrated store base
Product mixProduct mix
Strong information systemsStrong information systems
Experienced management teamExperienced management team
WHY INVEST IN HIBBETT?WHY INVEST IN HIBBETT?
Smaller market focus creates competitive advantagesSmaller market focus creates competitive advantages
Significant untapped market potentialSignificant untapped market potential
Track record of sales and earnings growthTrack record of sales and earnings growth
Attractive store modelAttractive store model
HIBBETT STORE MODEL – 5,000 SQ.FT. PROTOTYPEHIBBETT STORE MODEL – 5,000 SQ.FT. PROTOTYPE
($ in thousands)($ in thousands)
(1) Net of trade payables. Net of landlord allowance.(2) Includes pre-opening expenses and depreciation.
Initial Investment (1)
Sales % growth
Store Contribution (2)
Contribution Margin
Return on Investment
Initial Investment (1)
Sales % growth
Store Contribution (2)
Contribution Margin
Return on Investment
$181
$681
$79 11.6%
43.6%
$181
$681
$79 11.6%
43.6%
Year1Year1
$7215.9%
$122 16.9%
67.4%
$7215.9%
$122 16.9%
67.4%
Year2Year2
Strip Center StoresStrip Center Stores
FOCUS ON LOW COST OPERATIONSFOCUS ON LOW COST OPERATIONS
Highest operating margins in sporting goods industryHighest operating margins in sporting goods industry
Geographically concentrated store base - Distribution efficiencies - Regional management efficiencies
Geographically concentrated store base - Distribution efficiencies - Regional management efficiencies
Tight expense controls - Store-level operating expenses - Real estate costs - Corporate overhead
Tight expense controls - Store-level operating expenses - Real estate costs - Corporate overhead
WHY INVEST IN HIBBETT?WHY INVEST IN HIBBETT?
Smaller market focus creates competitive advantagesSmaller market focus creates competitive advantages
Attractive store modelAttractive store model
Track record of sales and earnings growthTrack record of sales and earnings growth
Significant untapped market potentialSignificant untapped market potential
GROWTH OPPORTUNITIESGROWTH OPPORTUNITIES634 stores in 23 states as of August 4, 2007
Over 400 potential markets identified for future expansion
17
22
18
10 1164
37 64 5925
12
2
2
51
5
15
25
21
31
28
1416
11
30
46
4876
27
27
43
112 43
5
803
STATE POPULATIONS - SUNBELTSTATE POPULATIONS - SUNBELTSTATE 1990 2005 DIFFERENCE % DIFFERENCE
Alabama 4,040.6 4,557.8 517.2 12.8%
Arkansas 2,350.7 2,779.2 428.5 18.2%
Arizona 3,665.2 5,939.3 2,274.1 62.0%
Florida 12,937.9 17,789.9 4,852.0 37.5%
Georgia 6,478.2 9,072.6 2,594.4 40.0%
Kentucky 3,685.3 4,173.4 488.1 13.2%
Louisiana 4,220.0 4,523.6 303.6 7.2%
Mississippi 2,573.2 2,921.1 347.9 13.5%
New Mexico 1,515.1 1,928.4 413.3 27.3%
North Carolina 6,628.6 8,683.2 2,054.6 31.0%
Oklahoma 3,145.6 3,547.9 402.3 12.8%
South Carolina 3,486.7 4,255.1 768.4 22.0%
Tennessee 4,877.2 5,963.0 1,085.8 22.3%
Texas 16,986.5 22,860.0 5,873.5 34.6%
Virginia 6,187.4 7,567.5 1,380.1 22.3%
TOTAL 82,778.2 106,562.0 23,783.8 28.7%
STATE POPULATIONS - SNOWBELTSTATE POPULATIONS - SNOWBELTSTATE 1990 2005 DIFFERENCE % DIFFERENCEConnecticut 3,287.1 3,510.3 223.2 6.79%Illinois 11,430.6 12,763.4 1,332.8 11.66%Indiana 5,544.2 6,272.0 727.8 13.13%Iowa 2,776.8 2,966.3 189.5 6.82%Kansas 2,477.6 2,744.7 267.1 10.78%Maine 1,227.9 1,321.5 93.6 7.62%Massachusetts 6,016.4 6,398.7 382.3 6.35%Michigan 9,295.3 10,120.9 825.6 8.88%Minnesota 4,375.1 5,132.8 757.7 17.32%Missouri 5,117.1 5,800.3 683.2 13.35%Nebraska 1,578.4 1,758.8 180.4 11.43%New Hampshire 1,109.1 1,309.4 200.3 18.06%New York 17,990.5 19,254.6 1,264.1 7.03%North Dakota 638.8 636.7 (2.1) -.33%Ohio 10,847.1 11,464.0 616.9 5.69%Pennsylvania 11,881.6 12,429.6 548.0 4.61%Rhode Island 1,003.5 1,076.2 72.7 7.24%South Dakota 696.0 775.9 79.9 11.48%Vermont 562.8 623.1 60.3 10.71%Wisconsin 4,891.8 5,536.2 644.4 13.17%West Virginia 1,763.5 1,816.9 548.0 4.6%TOTAL 104,511.2 113,712.3 9,201.1 7.2%
US Census Bureau Population Projection SUN BELT % ChangeUS Census Bureau Population Projection SUN BELT % Change
STATE 2000 - 2010 2010 - 2020 2020 - 2030 2000 - 2030
Alabama 3.4% 2.9% 3.1% 9.6%
Arkansas 7.5% 6.4% 5.9% 21.2%
Arizona 29.4% 27.4% 26.7% 108.8%
Florida 20.5% 21.6% 22.6% 79.5%
Georgia 17.1% 13.1% 10.8% 46.8%
Kentucky 5.5% 3.7% 3.0% 12.7%
Louisiana 3.2% 2.3% 1.8% 7.5%
Mississippi 4.5% 2.5% 1.6% 8.7%
New Mexico 8.9% 5.3% 0.7% 15.4%
North Carolina 16.1% 14.6% 14.2% 51.9%
Oklahoma 4.1% 4.0% 4.8% 13.4%
South Carolina 10.8% 8.5% 6.8% 28.3%
Tennessee 9.5% 8.8% 8.8% 29.7%
Texas 18.2% 16.2% 16.4% 59.8%Virginia 13.2% 11.3% 10.2% 38.8%
TOTAL 11.5% 9.9% 9.2% 35.5%
US Census Bureau Population Projection SNOW BELT % ChangeUS Census Bureau Population Projection SNOW BELT % Change
STATE 2000 - 2010 2010 - 2020 2020 - 2030 2000 - 2030Connecticut 5.0% 2.7% 0.4% 8.3%Illinois 4.0% 2.5% 1.5% 8.2%Indiana 5.1% 3.7% 2.8% 12.0%Iowa 2.9% 0.4% -2.2% 1.0%Kansas 4.4% 3.0% 1.7% 9.4%Maine 6.4% 3.8% 0.2% 10.7%Massachusetts 4.7% 3.1% 2.3% 10.4%Michigan 4.9% 2.6% 0.0% 7.6%Minnesota 10.2% 8.9% 6.9% 28.2%Missouri 5.8% 4.7% 3.7% 14.9%Nebraska 3.4% 1.9% 1.0% 6.4%New Hampshire 12.1% 10.0% 8.0% 33.2%New York 2.5% 0.7% -0.5% 2.6%North Dakota -0.9% 1.0% -3.7% -5.5%Ohio 2.0% 0.6% -0.8% 1.7%Pennsylvania 2.5% 1.6% -0.1% 4.0%Rhode Island 6.5% 3.4% -0.1% 10.0%South Dakota 4.2% 2.0% -0.2% 6.0%Vermont 7.2% 5.9% 3.1% 16.9%Wisconsin 6.8% 4.8% 2.4% 14.7%West Virginia 1.2% -1.5% -4.5% -4.9%TOTAL 4.8% 3.1% 1.0% 9.3%
NUMBER OF WAL-MART STORES PER STATENUMBER OF WAL-MART STORES PER STATE
STATESUPER
CENTERSREGULAR
WAL-MARTTOTAL
WAL-MARTTOTAL HIBBETT
STORES
Alabama 84 10 94 76ArizonaArkansas
5262
1218
6480
431
Florida 151 44 195 27Georgia 117 11 128 82Illinois 65 73 138 15Indiana 76 19 95 16Iowa 43 13 56 5Kansas 45 10 55 15Kentucky 67 16 83 33Louisiana 73 8 81 28Mississippi 56 8 64 50Missouri 85 32 117 21Nebraska 28 0 28 4New Mexico 28 3 31 5North Carolina 89 31 120 43Ohio 104 37 141 14Oklahoma 62 22 84 26South Carolina 53 12 65 27Tennessee 99 6 105 45Texas 286 48 334 54Virginia 69 18 87 11West Virginia 32 2 34 4TOTAL 1826 453 2279 636
INFRASTRUCTURE IN PLACE TO SUPPORT GROWTHINFRASTRUCTURE IN PLACE TO SUPPORT GROWTH
Personnel- Strong management team- Comprehensive training program focusing on
customer satisfaction- Emphasize selling skills and product knowledge
Personnel- Strong management team- Comprehensive training program focusing on
customer satisfaction- Emphasize selling skills and product knowledge
MIS- Timely merchandising information- State-of-the-art POS system- Comprehensive store level information- Sophisticated financial reporting systems- EDI with vendors
MIS- Timely merchandising information- State-of-the-art POS system- Comprehensive store level information- Sophisticated financial reporting systems- EDI with vendors
Distribution center can support over 850 storesDistribution center can support over 850 stores
Per RIS News, December 2005Per RIS News, December 2005
Stated the Top 45 Leaders in retail-focused software are:
Rank Company System
• 5 JDA Software Merchandise System
• 12 Lawson Software GL/AP/AR/HR
• 15 Datavantage POS
• 21 Manhattan Assoc. Warehouse Mgmt.
Stated the Top 45 Leaders in retail-focused software are:
Rank Company System
• 5 JDA Software Merchandise System
• 12 Lawson Software GL/AP/AR/HR
• 15 Datavantage POS
• 21 Manhattan Assoc. Warehouse Mgmt.
WHY INVEST IN HIBBETT?WHY INVEST IN HIBBETT?
Smaller market focus creates competitive advantagesSmaller market focus creates competitive advantages
Attractive store modelAttractive store model
Significant untapped market potentialSignificant untapped market potential
Track record of sales and earnings growthTrack record of sales and earnings growth
STRONG UNIT GROWTHSTRONG UNIT GROWTHStores at fiscal year-endStores at fiscal year-end
1999
171
2000
223
2001
282
2002
329
2003
371CAGR=17.30%
Growth %Growth %
2004
428
2006
549
2005
482
26.526.5 16.716.7 12.812.8 15.415.4 12.612.6
2007
613
13.913.9 11.711.742.542.5 30.430.4
STRONG FINANCIAL PERFORMANCESTRONG FINANCIAL PERFORMANCENet Sales($ in millions)
CAGR=17.25%
1999
$143.4
2000
$174.3
2001
$209.6
2002
$241.1
2003
$279.2
(Comparable Store Sales %)(Comparable Store Sales %)
5.35.33.03.0 3.03.0 2.02.0 2.72.7 3.93.9 5.75.7
2004
$321.0
$440.3
2006
5.6
2005
$377.5
$512.1
2007
3.83.8
STRONG FINANCIAL PERFORMANCESTRONG FINANCIAL PERFORMANCEComp Sales by ClassFYE 2007 @ 3.80%
2001 200320001999
2.71%
2002 2004
5.21%
Before ‘98
1998 2005
1.80%1.80%
7.64%7.64%
3.78%3.78%
3.59%3.59%
4.99%4.99%
1.41%1.41%
6.98%6.98%
STRONG FINANCIAL PERFORMANCESTRONG FINANCIAL PERFORMANCEOperating Income($ in millions)
CAGR=23.78%
1999
$11.2
2000
$14.5
2001
$18.2
2002
$19.0
2003
$22.6
Margin %
Margin % 7.87.8 8.38.3 8.78.7 7.97.9 9.69.68.18.1 10.410.4
2004
$30.8
11.8
2005
$39.4
2007
$61.7
2006
$51.7
12.1
1999
$0.21
2000
$0.27
2001
$0.32
2002
$0.34
2003
$0.41
STRONG FINANCIAL PERFORMANCESTRONG FINANCIAL PERFORMANCEEarnings Per Share (diluted)
CAGR=23.95%
2004
$0.55
2005
$0.70
2007
$1.17
2006
$0.98
CAPITALIZATION SUMMARYCAPITALIZATION SUMMARY($ in thousands)($ in thousands)($ in thousands)($ in thousands)
Cash & Short Term Inv.Cash & Short Term Inv. $ 9,872$ 9,872 $ 5,464$ 5,464
August 4, 2007August 4, 2007 July 29, 2006July 29, 2006
InventoryInventory $ 149,753$ 149,753 $ 131,168$ 131,168
Long-Term DebtLong-Term Debt $ 0$ 0 $ 0$ 0
Total Stock shares repurchased as of February 23, 2007:
5.0 million shares and $118.1 million dollars