Hibbet (HIBB) changes its corporate name and initiates a dividend – June 25, 2021
Hibbett, Inc. (HIBB – Free Report) has decided to adopt a new corporate name in order to better resonate with its expanded assortment. Effective June 24, 2021, the company changed its corporate identity from “Hibbett Sports, Inc.” to “Hibbett, Inc.”. However, the company’s trade symbol remains unchanged.
Management said that over the past few years, the company has evolved its sporting goods offering into an athletic-inspired fashion-focused assortment, providing it with great diversity. The company’s new corporate identity better reflects this transition and also highlights its consumer-centric Toe-to-Head orientation that responds to footwear trends and establishes cross-category connectivity with apparel and accessories offerings. While the company will continue to provide products for individual and team sports across multiple stores and its omnichannel platform, it will focus on providing a compelling collection of footwear, apparel and accessories from sports-inspired fashion.
In a separate statement, the company announced its decision to initiate payment of a quarterly dividend. It declared an initial quarterly dividend of 25 cents per share on its common stock, payable July 20, 2021, to shareholders of record on July 8, 2021.
The launch of the company’s first dividend program signals its commitment to providing long-term shareholder value as well as confidence in its financial position and ability to generate sufficient cash flow. Apart from that, the company carries out share buybacks. Last month, the company extended its existing $ 500 million share buyback program, which resulted in a total authorization of $ 800 million valid through February 1, 2025. In addition, it repurchased 7 469,387 shares valued at nearly $ 201 million as of May 26, 2021, as part of its earlier action. $ 300 million buyout plan.
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While the company is encouraged in its efforts to increase returns for its shareholders, it is also confident in its strategic growth plans. In its latest winning call, management stressed that the company is committed to expanding its assortments, building supply chain capacity and improving the consumer experience in stores and online.
From sports brands, the company is experiencing strong demand for sports, relaxation and performance products. In addition, the company’s fashion branding business remained strong. In this context, the expansion of denim has been encouraging, while collections with strong connectivity to sneakers are doing well. In addition, casual shoes as well as slides and sandals are doing well. Markedly, favorable demand trends and strong merchandising strategies boosted the company’s performance in the first quarter of fiscal 2022, when it experienced triple-digit growth for branded apparel , fashion clothing, licensed clothing and accessories.
Additionally, Hibbett is undertaking commendable efforts on the e-commerce front. The company has strengthened omnichannel capabilities such as online purchase and in-store pickup, online purchase in-store shipping, same-day delivery, and mobile app services to fulfill online orders. Strong online business helped the company’s revenue in the first quarter. Other than that, the company has made good progress with its loyalty program, which helps build customer loyalty.
In conclusion, we believe that the company’s well-defined growth strategies, increased online sales and robust demand will continue to help its performance. In the latest earnings call, the company provided an encouraging view of comparable sales for fiscal 2022. The company expects mixes to be up by one to double digits, suggesting an improvement in mixes of low-simple to low-simple. figure predicted earlier.
Shares of this company Zacks Rank # 1 (Strong Buy) have climbed 270.9% in the past three months, compared to a 26.6% increase for the industry.
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