Hibbett Announces Expansion of Stock Repurchase Authorization

Rhea-AI Summary

Hibbett Sports has expanded its stock repurchase program by $500 million, totaling $800 million, and extended it to February 1, 2025. This decision underscores the company's confidence in its financial health and future cash flow generation, allowing for potential buybacks in open market transactions as market conditions permit. As of May 26, 2021, Hibbett repurchased 7.47 million shares at around $201 million under the initial $300 million authorization. The company plans to acquire shares for tax withholding on restricted stock units without affecting the repurchase program.

Positive

• Expansion of stock repurchase program by $500 million, boosting total authorization to $800 million.
• Confidence in future performance and cash flow generation as emphasized by the CEO.
• Previous buyback of 7.47 million shares demonstrates commitment to returning value to shareholders.

Negative

• None.

Hibbett Sports, Inc. (Nasdaq/GS: HIBB), an athletic-inspired fashion retailer, announced an expansion of their 2015 Stock Repurchase Program (the “Program”).

On May 26, 2021, the Board of Directors of Hibbett Sports, Inc. (the “Company”) authorized the expansion of its existing Program by $500.0 million to a total of $800.0 million and authorized the Program’s extension until February 1, 2025. The Program’s original authorization was approved on November 19, 2015, in the amount of $300.0 million and prior to the Board’s action, was scheduled to expire on January 29, 2022. As of May 26, 2021, the Company had purchased 7,469,387 shares of its common stock at a cost of approximately $201.0 million under the Program’s original authorization of $300.0 million. The Program authorizes repurchases of the Company’s common stock in open market or negotiated transactions, with the amount and timing of repurchases dependent on market conditions and at the discretion of management.

Mike Longo, President and Chief Executive Officer, commented, “Our strong financial results have enabled us to invest in growing our business while returning cash to our shareholders through our repurchase program. The Board’s approval to expand this program reflects continued confidence in Hibbett’s future performance and long-term cash flow generation capabilities.”

In addition to the Program, the Company may also acquire shares of its common stock from holders of restricted stock unit awards to satisfy tax withholding requirements due at vesting. Shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements do not reduce the Program authorization.

About Hibbett Sports

Hibbett, headquartered in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with 1,071 Hibbett Sports and City Gear specialty stores located in 35 states nationwide. Hibbett has a rich history of convenient locations, personalized customer service and access to coveted footwear, apparel and equipment from top brands like Nike, Jordan and adidas. Consumers can browse styles, find new releases, shop looks and make purchases online or in their nearest store by visiting www.hibbett.com. Follow us @hibbettsports and @citygear on Facebook, Instagram, and Twitter.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Hibbett Sports, Inc. with the Securities and Exchange Commission, including the Company's recent Annual Report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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FAQ

What is the reason for Hibbett Sports' stock repurchase program expansion?

The expansion reflects Hibbett Sports' confidence in its financial health and future cash flow generation.

How much has Hibbett Sports authorized for its stock repurchase program?

Hibbett Sports has authorized a total of $800 million for its stock repurchase program.

When does Hibbett Sports' stock repurchase program expire?

The program is set to expire on February 1, 2025.

How many shares has Hibbett Sports repurchased under the original authorization?

Hibbett Sports has repurchased 7.47 million shares for approximately $201 million.

What impacts could the stock repurchase have on Hibbett Sports' stock price?

The stock repurchase program could enhance shareholder value and positively influence the stock price due to reduced supply.