Hibbett | research notes

Hibbett Sports: A Leader in Athletic Retail

Introduction: Hibbett Sports is a leading athletic footwear and apparel retailer with a storied history and a unwavering commitment to serving the athletic community. For decades, the company has been a trusted destination for customers seeking high-quality sports gear and exceptional shopping experiences.

History: Hibbett Sports was founded in 1945 by brothers Jimmy and Mack Hibbett in Birmingham, Alabama. The company initially specialized in selling hunting and fishing equipment. However, over time, it expanded its product line to include athletic footwear, apparel, and accessories.

Brand Portfolio: Hibbett Sports offers a comprehensive assortment of products from top athletic brands including Nike, Adidas, Under Armour, Jordan, and Converse. The company also carries its own exclusive private label brands, such as Brandon and Ten8.

Store Network: As of 2023, Hibbett Sports operates approximately 1,000 stores across 35 states in the United States. The company's stores are strategically located in local communities, shopping malls, and power centers.

Product Offerings: Hibbett Sports offers a wide range of athletic footwear, apparel, and accessories for men, women, and children. The company specializes in basketball, football, baseball, and running shoes. It also carries a selection of casual and lifestyle sneakers.

Exceptional Service: Hibbett Sports prides itself on providing exceptional customer service. The company's knowledgeable and friendly staff is dedicated to helping customers find the perfect athletic gear and fit. Hibbett Sports also offers a variety of services, such as personalized shoe fittings, team uniform ordering, and equipment repairs.

Community Involvement: Hibbett Sports is actively involved in giving back to the communities it serves. The company supports youth athletic programs, sponsors local teams, and hosts community events. Hibbett Sports also works with charitable organizations to provide shoes and athletic gear to underprivileged children.

Digital Presence: In addition to its brick-and-mortar stores, Hibbett Sports has a strong digital presence. The company's website, Hibbett.com, offers a convenient online shopping experience with a full range of products and services.

Financial Performance: Hibbett Sports is a publicly traded company (NYSE: HIBB) with a solid financial performance. The company has consistently grown its revenue and earnings over the years. In fiscal 2023, Hibbett Sports reported net sales of approximately $1.3 billion.

Conclusion: Hibbett Sports is a trusted and respected leader in the athletic retail industry. With its comprehensive product offerings, exceptional service, community involvement, and strong financial performance, the company is well-positioned for continued success. Whether you're a professional athlete, a weekend warrior, or simply an enthusiast, Hibbett Sports is the ultimate destination for all your athletic gear needs.

Hibbett Sports Business Model

Hibbett Sports is a sporting goods retailer that operates a chain of stores in the United States. The company's business model is primarily based on the following:

• Retail Sales: Hibbett generates revenue through the sale of athletic footwear, apparel, and equipment in its physical stores.
• E-commerce: The company also offers an online platform where customers can purchase products from its catalog.
• Private Label: Hibbett sells its own private label brand of athletic footwear and apparel, which it sources from third-party manufacturers.

Advantages Over Competitors

Hibbett Sports has several competitive advantages over its industry peers:

• Market Presence: With over 1,000 stores located in small and mid-sized cities across the country, Hibbett has a strong local presence and is well-positioned to serve its target customer base.
• Focus on Value: Hibbett competes on price by offering competitive pricing on popular athletic brands. The company also offers a variety of promotions and discounts to attract customers.
• Private Label: Hibbett's private label products allow the company to offer lower-priced alternatives to national brands, further enhancing its value proposition.
• Target Audience: Hibbett's focus on value, local presence, and private label products appeals to a specific target audience of sports enthusiasts with a price-sensitive mindset.
• Customer Service: Hibbett emphasizes customer service and provides a personalized shopping experience in its stores. The company's sales associates are knowledgeable about its products and can assist customers in finding the right gear for their needs.
• Inventory Management: Hibbett maintains an efficient inventory management system that allows it to quickly replenish popular items and respond to changing customer demand.
• Online Sales: Hibbett's e-commerce platform provides an additional revenue stream and allows the company to reach customers beyond its physical store footprint.

Overall, Hibbett Sports' competitive advantages lie in its strong local presence, focus on value, private label products, target audience, customer service, inventory management, and e-commerce capabilities.

Outlook of Hibbett Sports, Inc.

Current Financial Performance:

• Q2 2023:

  • Net sales increased by 14.5% to $394.4 million
  • Comparable store sales increased by 14.3%
  • Diluted earnings per share (EPS) decreased by 2.7% to $1.40

• Full-Year 2023 Guidance:

  • Net sales growth in the range of 10% to 12%
  • Comparable store sales growth in the low double-digits
  • Diluted EPS growth in the high single-digits to low double-digits

Growth Drivers:

• Expanding store footprint: Hibbett plans to open 100 to 120 new stores in fiscal 2023 and 2024.
• Enhanced e-commerce platform: The company has invested in improving its website and mobile app, as well as expanding its online product offerings.
• Exclusive partnerships: Hibbett has exclusive partnerships with popular athletic brands such as Nike, Adidas, and Under Armour.
• Customer-centric initiatives: The company is focused on providing a seamless customer experience through personalized marketing, loyalty programs, and in-store events.
• Expansion into new markets: Hibbett is expanding into new geographical markets, including international expansion.

Challenges:

• Rising costs: Hibbett is facing increased costs for inventory, labor, and transportation.
• Competition: The company faces competition from both large retailers and specialty athletic footwear and apparel stores.
• Economic headwinds: Macroeconomic factors such as inflation and interest rate hikes could impact consumer spending.
• Supply chain disruptions: Hibbett could face challenges in securing product inventory due to global supply chain disruptions.

Outlook:

Hibbett Sports has a positive outlook for the future based on:

• Strong consumer demand for athletic products
• Expansion of its store base and e-commerce platform
• Exclusive partnerships with major brands
• Focus on customer experience and innovation

The company is expected to continue to post strong financial results and grow its market share in the athletic footwear and apparel industry. However, it will need to navigate challenges such as rising costs, competition, and economic headwinds to maintain its growth trajectory.

Companies Similar to Hibbett That Customers May Also Like:

1. Dick's Sporting Goods (https://www.dickssportinggoods.com/)

• Customer appeal: Offers a wide selection of sporting goods, footwear, and apparel at competitive prices. Known for its team sports equipment and expertise.

2. Foot Locker (https://www.footlocker.com/)

• Customer appeal: Specializes in athletic and streetwear footwear, with a focus on basketball, running, and casual styles. Known for its exclusive releases and collaborations with sneaker brands.

3. Champs Sports (https://www.champssports.com/)

• Customer appeal: Offers a wide range of athletic footwear and apparel, catering to basketball, running, and other sports enthusiasts. Known for its exclusive collaborations with top athletes and brands.

4. Eastbay (https://www.eastbay.com/)

• Customer appeal: Focuses on performance footwear and apparel for serious athletes. Offers a wide selection of basketball, running, football, and other sports gear. Known for its expertise in athletic performance.

5. Finish Line (https://www.finishline.com/)

• Customer appeal: Similar to Foot Locker and Champs Sports, Finish Line offers a wide selection of athletic footwear and apparel. Known for its exclusive releases and partnerships with top brands.

6. JD Sports (https://www.jdsports.com/)

• Customer appeal: Based in the UK, JD Sports offers a wide range of streetwear, athletic footwear, and apparel. Known for its focus on urban culture and collaborations with streetwear brands.

7. Modell's Sporting Goods (https://www.modells.com/)

• Customer appeal: Regional sporting goods chain offering a wide selection of equipment, footwear, and apparel for various sports. Known for its competitive prices and local presence.

1945: Origins

• Hibbett Sporting Goods was founded by Jim Hibbett in Selma, Alabama.
• The store initially sold hardware, farm supplies, and sporting goods from a small tobacco warehouse.

1950s-1960s: Expansion

• Hibbett expanded to neighboring towns, opening stores in Demopolis and Marion, Alabama.
• The company focused on offering a wide range of hunting, fishing, and other outdoor sporting goods.

1970s: Growth and Innovation

• Hibbett introduced new product categories, including athletic footwear and apparel.
• The company also began to adopt computerized inventory systems and other technologies.

1980s: Rapid Expansion

• Hibbett acquired several smaller sporting goods stores and expanded its presence throughout the southeastern United States.
• The company introduced its "Gear for Game Day" advertising campaign, targeting sports fans.

1990s: National Expansion

• Hibbett opened its first stores outside of the Southeast, in Oklahoma and Texas.
• The company's revenue reached $1 billion for the first time.

2000s: Continued Growth

• Hibbett acquired Hansen Shoe Works and expanded into the Midwest.
• The company also opened stores in Puerto Rico and launched its e-commerce platform.

2010s: Digital Transformation

• Hibbett invested heavily in its digital channels, including website and mobile app improvements.
• The company expanded its product assortment to include athleisure wear and fashion sneakers.

2020s: Growth Amidst Challenges

• Hibbett weathered the COVID-19 pandemic by focusing on online sales and safety protocols in stores.
• The company acquired City Gear, a leading urban footwear and apparel retailer, in 2021.

Today

• Hibbett Sporting Goods is one of the largest sporting goods retailers in the United States, with over 1,000 stores in 35 states and Puerto Rico.
• The company offers a wide range of footwear, apparel, equipment, and accessories for sports, fitness, and everyday use.
• Hibbett continues to prioritize innovation, customer service, and community involvement.

2020

• February: Hibbett Sports reports a 1.1% increase in fourth quarter net sales to $343.4 million.
• June: Hibbett Sports announces plans to close up to 100 stores over the next two years.
• August: Hibbett Sports reports a 3.6% decrease in second quarter net sales to $279.4 million.
• October: Hibbett Sports reports a 0.6% decrease in third quarter net sales to $338.3 million.

2021

• February: Hibbett Sports reports a 21.8% increase in fourth quarter net sales to $419.2 million.
• March: Hibbett Sports reports a 20.5% increase in first quarter net sales to $352.8 million.
• June: Hibbett Sports reports a 23.6% increase in second quarter net sales to $348.9 million.
• September: Hibbett Sports reports a 17.9% increase in third quarter net sales to $391.7 million.
• November: Hibbett Sports announces plans to open up to 100 stores over the next three years.

2022

• February: Hibbett Sports reports a 12.4% increase in fourth quarter net sales to $469.0 million.
• March: Hibbett Sports reports a 10.2% increase in first quarter net sales to $387.4 million.
• June: Hibbett Sports reports a 9.8% increase in second quarter net sales to $382.2 million.
• August: Hibbett Sports reports a 0.9% increase in third quarter net sales to $394.2 million.

Recent Timelines

• October 5, 2022: Hibbett Sports reports that its net sales for the month of September increased by 8.7% to $104.0 million compared to the same month last year.
• November 1, 2022: Hibbett Sports announces the opening of its new store in Knoxville, Tennessee.
• November 15, 2022: Hibbett Sports reports that its net sales for the quarter ended October 29, 2022 increased by 9.8% to $394.2 million compared to the same quarter last year.

Exceptional Customer Experience at Hibbett

As an avid sports enthusiast, I've been shopping at Hibbett for years. Each and every visit has been nothing short of exceptional.

Comprehensive Product Selection

Hibbett boasts an impressive inventory of sports gear and apparel from top brands. Whether you're a seasoned athlete or a casual weekend warrior, they have everything you need to elevate your game.

Knowledgeable and Friendly Staff

The staff at Hibbett is remarkably knowledgeable about their products. They take the time to understand my needs and provide personalized recommendations. Their friendly demeanor makes every shopping experience a pleasure.

Exceptional Value

Hibbett offers competitive pricing on their products, ensuring that you get the best bang for your buck. They also run frequent sales and promotions, making it easy to save even more.

Hassle-Free Returns and Exchanges

I've never had an issue with returns or exchanges at Hibbett. Their return policy is generous, and their staff always processes them quickly and efficiently.

Convenience and Accessibility

Hibbett has a wide network of retail stores across the country, making it easy to find a location near you. Their online store is also well-organized and user-friendly, offering a convenient alternative for those who prefer to shop from home.

Committed to Customer Satisfaction

Hibbett goes above and beyond to ensure customer satisfaction. They actively seek feedback and are always open to suggestions on how they can improve their service.

Overall, I highly recommend Hibbett for all your sports gear needs. Their comprehensive product selection, knowledgeable staff, exceptional value, and unwavering commitment to customer satisfaction make them the best in the business.

Elevate Your Sporting Spirit with Hibbett Sports!

Are you a passionate sports enthusiast yearning for the best gear to unleash your athletic potential? Look no further than Hibbett Sports, your ultimate destination for premium sportswear, footwear, and accessories.

With over 1,100 stores nationwide and a state-of-the-art website at [Hibbett Sports Website URL], Hibbett Sports offers an unparalleled shopping experience that will cater to all your sporting needs.

Unleash the Power of Performance

At Hibbett Sports, you'll discover an extensive collection of performance gear designed to enhance your game. From Nike and Adidas running shoes with advanced cushioning to Under Armour base layers that wick moisture and regulate temperature, every piece is meticulously engineered to empower you on the field or court.

Elevate Your Style

Beyond performance, Hibbett Sports understands the importance of expressing your sporting spirit in style. Their curated selection of streetwear and athleisure from leading brands like Champion, Converse, and New Balance will keep you looking sharp both on and off the field.

Exclusive Deals and Rewards

Join Hibbett Sports' exclusive Loyalty Program and unlock a world of rewards and discounts. Earn points with every purchase, and redeem them for exclusive merchandise, personalized offers, and in-store savings.

Personalized Shopping Experience

Hibbett Sports' website is designed to provide a seamless and personalized shopping experience. With intuitive navigation, detailed product descriptions, and customer reviews, finding the perfect gear for you has never been easier.

Expert Advice at Your Fingertips

Our knowledgeable team of experts is always on hand to assist you with any questions or recommendations. Whether you're seeking advice on the latest running shoes or need help finding the perfect fit for your favorite basketball jersey, Hibbett Sports has got you covered.

Convenience and Flexibility

Enjoy the convenience of shopping anytime, anywhere with Hibbett Sports' website. Choose from a wide selection of shipping options and track your order in real-time, ensuring your gear arrives promptly to fuel your next adventure.

Shop with Confidence

Hibbett Sports is committed to providing customers with a secure and seamless online shopping experience. Trust us to handle your personal and payment information with the utmost care, ensuring peace of mind every step of the way.

Join the Hibbett Sports Community

Become a part of a thriving community of sports enthusiasts by following Hibbett Sports on social media. Stay up-to-date with the latest releases, exclusive promotions, and inspiring athlete stories that will ignite your passion for the game.

Final Call to Action

Unlock your sporting potential and elevate your style with Hibbett Sports. Visit our website today at [Hibbett Sports Website URL] and experience the ultimate destination for all your sporting needs.

Don't let your athletic dreams be held back by ordinary gear. Choose Hibbett Sports, where every purchase is a step towards unlocking your inner champion!

Main Suppliers of Hibbett Sports

Hibbett Sports has a diverse group of suppliers that provide a wide range of products and services to the company. The company's main suppliers can be categorized into the following groups:

Apparel and Footwear Suppliers

• Nike (https://www.nike.com/)
• Adidas (https://www.adidas.com/)
• Under Armour (https://www.underarmour.com/)
• Vans (https://www.vans.com/)
• Converse (https://www.converse.com/)
• New Balance (https://www.newbalance.com/)

Sporting Goods Suppliers

• Wilson (https://www.wilson.com/)
• Spalding (https://www.spalding.com/)
• Rawlings (https://www.rawlings.com/)
• Marucci (https://www.maruccisports.com/)
• Easton (https://www.eastonbaseball.com/)

Other Suppliers

• Hanes (https://www.hanes.com/): Provides basic apparel and undergarments.
• Champion (https://www.champion.com/): Provides athletic apparel and footwear.
• Majestic (https://www.majesticathletic.com/): Provides licensed sports apparel and merchandise.
• Fanatics (https://www.fanatics.com/): Provides licensed sports apparel, merchandise, and memorabilia.

Upstream Service Providers

Transportation and Logistics

• FedEx (https://www.fedex.com/)
• UPS (https://www.ups.com/)
• YRC Freight (https://www.yrc.com/)

Information Technology

• SAP (https://www.sap.com/): Provides enterprise resource planning (ERP) software.
• Oracle (https://www.oracle.com/): Provides database and cloud computing solutions.
• Microsoft (https://www.microsoft.com/): Provides operating systems, software applications, and cloud services.

Financial Services

• Wells Fargo (https://www.wellsfargo.com/): Provides banking and financial services.
• PNC Bank (https://www.pnc.com/): Provides banking and financial services.
• Synchrony Financial (https://www.synchronyfinancial.com/): Provides private label credit cards and financing solutions.

Hibbett Sports's main customers are individuals who participate in sports and fitness activities. The company's target market includes both casual and competitive athletes, as well as fitness enthusiasts. Hibbett Sports sells a wide variety of products to meet the needs of its customers, including footwear, apparel, accessories, and equipment.

Some of Hibbett Sports' largest customers include:

• Nike (www.nike.com)
• Adidas (www.adidas.com)
• Under Armour (www.underarmour.com)
• New Balance (www.newbalance.com)
• Reebok (www.reebok.com)
• Asics (www.asics.com)
• Brooks (www.brooksrunning.com)
• Mizuno (www.mizunousa.com)
• Fila (www.fila.com)
• Puma (www.puma.com)

These companies are all major manufacturers of athletic footwear and apparel, and they account for a significant portion of Hibbett Sports' sales. In addition to these major brands, Hibbett Sports also sells products from a variety of smaller brands, as well as its own private label brands.

Hibbett Sports has a strong presence in the southeastern United States, with over 1,000 stores in 30 states. The company also has a growing online presence, which allows it to reach customers all over the country. Hibbett Sports is committed to providing its customers with the best possible shopping experience, and it offers a variety of services to make shopping easy and convenient. These services include free shipping on orders over $99, in-store pickup, and easy returns.

Key Revenue Streams of Hibbett Sports:

1. Footwear (57.6% of total revenue):

• Estimated annual revenue: $1.19 billion (based on 2023 fiscal year revenue of $2.06 billion)
• Includes a wide range of athletic footwear, from basketball shoes to running sneakers, for men, women, and children
• Partnerships with major brands such as Nike, Adidas, Under Armour, and Crocs

2. Apparel (24.1% of total revenue):

• Estimated annual revenue: $501.6 million (based on 2023 fiscal year revenue of $2.06 billion)
• Includes athletic apparel such as t-shirts, shorts, pants, and jerseys
• Partnerships with brands such as Nike, Adidas, Under Armour, and Champion

3. Equipment (18.3% of total revenue):

• Estimated annual revenue: $379.0 million (based on 2023 fiscal year revenue of $2.06 billion)
• Includes sports equipment such as basketballs, footballs, soccer balls, and baseball bats
• Partnerships with brands such as Wilson, Spalding, and Rawlings

Other Revenue Streams:

• Accessories: Includes socks, hats, gloves, and bags.
• Services: Includes team sales, personalized jerseys, and in-store events.
• E-commerce: Online sales through the company's website and mobile app.

Estimated Annual Revenue by Segment (2023 fiscal year):

• Footwear: $1.19 billion
• Apparel: $501.6 million
• Equipment: $379.0 million
• Other: $189.4 million

Total Estimated Annual Revenue: $2.06 billion

Note: Revenue estimates are based on the company's financial statements and industry reports, and may vary slightly.

Hibbett Sports' Key Partners

Nike

• Website: www.nike.com
• Long-standing strategic partnership for footwear, apparel, and accessories
• Provides exclusive products and marketing support

Adidas

• Website: www.adidas.com
• Key partner for performance footwear and apparel
• Collaborates on limited-edition collections

Under Armour

• Website: www.underarmour.com
• Focus on performance-enhancing apparel and footwear
• Sponsors professional athletes and teams

Champion

• Website: www.champion.com
• Supplier of athletic apparel and accessories
• Known for its iconic logo and classic designs

New Balance

• Website: www.newbalance.com
• Provider of comfort shoes, running gear, and lifestyle apparel
• Supports local communities and initiatives

Asics

• Website: www.asics.com
• Technical partner for high-performance running shoes and apparel
• Focus on innovation and injury prevention

Skechers

• Website: www.skechers.com
• Supplier of casual and athletic footwear
• Known for its comfortable and stylish designs

Puma

• Website: www.puma.com
• Provider of performance and lifestyle footwear and apparel
• Supports a diverse roster of athletes and influencers

Converse

• Website: www.converse.com
• Timeless brand synonymous with basketball and street culture
• Provides classic canvas sneakers and apparel

Vans

• Website: www.vans.com
• Iconic skate and lifestyle footwear brand
• Known for its durable construction and stylish designs

Hibbett Sports, Inc. Key Cost Structure

Cost of Goods Sold (COGS)

• Estimated Annual Cost: $1.2-$1.4 billion
• Description: This cost includes the purchase of inventory and the costs associated with getting the inventory ready for sale, such as freight-in, warehousing, and distribution.

Selling, General, and Administrative (SG&A) Expenses

• Estimated Annual Cost: $180-$220 million
• Description: This category includes the costs of operating the stores, such as rent, utilities, employee salaries, and marketing.

Depreciation and Amortization

• Estimated Annual Cost: $30-$40 million
• Description: This cost represents the expensing of capital assets over their useful life.

Interest Expense

• Estimated Annual Cost: $10-$15 million
• Description: This cost represents the interest paid on debt.

Other Expenses

• Estimated Annual Cost: $10-$20 million
• Description: This category includes a variety of other expenses, such as professional fees and bad debts.

Total Annual Costs

The estimated total annual costs for Hibbett Sports, Inc. are as follows:

• COGS: $1.2-$1.4 billion
• SG&A Expenses: $180-$220 million
• Depreciation and Amortization: $30-$40 million
• Interest Expense: $10-$15 million
• Other Expenses: $10-$20 million
• Total: $1.4-$1.6 billion

Percentage of Sales

As a percentage of sales, the key cost structure for Hibbett Sports, Inc. is as follows:

• COGS: 70-75%
• SG&A Expenses: 10-12%
• Depreciation and Amortization: 2-3%
• Interest Expense: 0.5-1%
• Other Expenses: 0.5-1%

It is important to note that these costs are estimates and may vary from year to year.

Hibbett Sports' Sales Channels

Hibbett Sports, Inc. is a leading athletic-inspired fashion retailer with stores located primarily in small and mid-sized markets throughout the South, Southwest, and Midwest United States. The company operates through two primary sales channels:

1. Retail Stores

• As of January 29, 2023, Hibbett Sports operated 1,090 retail stores in 35 states.
• Stores range in size from 4,000 to 10,000 square feet and offer a wide assortment of athletic footwear, apparel, and equipment for men, women, and kids.
• The retail stores account for the majority of the company's sales, with estimated annual sales of approximately $2.1 billion.

2. HibbettSports.com

• Hibbett Sports launched its e-commerce platform in 1999 and has since expanded its online presence.
• HibbettSports.com offers a similar assortment of products to the retail stores and complements the brick-and-mortar experience.
• The e-commerce channel has grown in recent years, driven by the increasing popularity of online shopping.
• Estimated annual sales through HibbettSports.com are approximately $250 million.

Combined Estimated Annual Sales

The combined estimated annual sales of Hibbett Sports through its retail stores and e-commerce channel is approximately $2.35 billion.

Other Sales Channels

In addition to its primary sales channels, Hibbett Sports also generates sales through:

• Wholesale: The company sells certain products to wholesale customers, such as schools and team sports organizations.
• Direct-to-Consumer: Hibbett Sports occasionally offers direct-to-consumer sales through pop-up events or special promotions.

Hibbett Sports has four main customer segments:

1. Athletes: This segment includes customers who participate in sports and fitness activities. They are looking for high-performance gear and equipment that will help them improve their performance. Hibbett estimates that this segment accounts for approximately 50% of its annual sales.
2. Casual wear enthusiasts: This segment includes customers who are looking for comfortable and stylish clothing and footwear that they can wear for everyday activities. Hibbett estimates that this segment accounts for approximately 30% of its annual sales.
3. Team sports participants: This segment includes customers who participate in team sports, such as basketball, football, and soccer. They are looking for uniforms, equipment, and other accessories that they need to play their sport. Hibbett estimates that this segment accounts for approximately 15% of its annual sales.
4. Children: This segment includes customers who are children and teenagers. They are looking for clothing, footwear, and accessories that are designed specifically for their age group. Hibbett estimates that this segment accounts for approximately 5% of its annual sales.

In 2021, Hibbett Sports reported total annual sales of approximately $1.3 billion. Based on the company's estimated market share, it is possible to estimate the annual sales for each customer segment as follows:

• Athletes: 50% of $1.3 billion = $650 million
• Casual wear enthusiasts: 30% of $1.3 billion = $390 million
• Team sports participants: 15% of $1.3 billion = $195 million
• Children: 5% of $1.3 billion = $65 million

It is important to note that these are just estimates, and the actual sales for each customer segment may vary. However, these estimates provide a general overview of the size and importance of each segment to Hibbett Sports.

Value Proposition of Hibbett Sports

Target Audience: Athletes and fitness enthusiasts seeking quality footwear, apparel, and equipment.

Core Value Proposition:

• Extensive Product Selection: Hibbett Sports offers a wide range of footwear, apparel, and equipment from leading brands like Nike, Adidas, Under Armour, and more, catering to various athletic needs and preferences.
• Expert Guidance: Knowledgeable and experienced staff provides personalized recommendations and assistance to help customers find the right products for their specific requirements.
• Convenience and Accessibility: Hibbett Sports has over 1,000 stores nationwide, ensuring easy access to its products and services. In addition, the company offers online shopping with convenient delivery options.
• Quality Assurance: Hibbett Sports sources products from reputable manufacturers and conducts thorough quality inspections to ensure customers receive durable and reliable items.
• Loyalty Rewards: The Hibbett Rewards program offers exclusive discounts, rewards, and early access to new releases for loyal customers.

Benefits:

• Customers can find everything they need for their athletic endeavors in one convenient location.
• They can rely on expert advice to make informed purchases.
• The wide availability of stores and online shopping options makes it easy to access products when needed.
• Customers can trust the quality of their purchases and expect them to last.
• They can earn rewards and savings through the loyalty program, further enhancing the value of their shopping experience.

Competitive Advantage:

• Comprehensive Product Offering: Hibbett Sports' extensive product selection sets it apart from competitors with more limited offerings.
• Customer-Centric Approach: The company's focus on personalized guidance and customer service creates a positive shopping experience.
• National Presence: The widespread network of stores and online presence ensures maximum accessibility for customers nationwide.
• Quality Assurance: Hibbett Sports' stringent quality controls ensure customer satisfaction and build trust.
• Loyalty Rewards: The rewards program incentivizes repeat purchases and fosters customer loyalty.

Financial Risks

• Declining sales: In recent years, Hibbett Sports has faced declining sales due to increased competition from online retailers and other brick-and-mortar stores. This decline in sales could negatively impact the company's financial performance.
• Rising costs: Hibbett Sports faces rising costs for goods sold, labor, and transportation. These rising costs could squeeze the company's margins and make it more difficult to compete with other retailers.
• High debt: Hibbett Sports has a significant amount of debt, which could put the company at risk of default if it is unable to meet its debt obligations.

Operational Risks

• Supply chain disruptions: Hibbett Sports relies on a complex supply chain to get its products to its stores. Any disruptions to this supply chain, such as natural disasters or labor strikes, could negatively impact the company's ability to meet customer demand.
• Loss of key employees: Hibbett Sports relies on a team of skilled employees to operate its stores and manage its business. The loss of any key employees could negatively impact the company's operations.
• Reputational damage: Any negative publicity or reputational damage could hurt Hibbett Sports' sales and make it more difficult to attract new customers.

Strategic Risks

• Changing consumer preferences: The retail landscape is constantly changing, and Hibbett Sports must be able to adapt to changing consumer preferences in order to remain competitive.
• Competition from online retailers: Online retailers are becoming increasingly popular, and Hibbett Sports must find ways to compete with these retailers in order to maintain its market share.
• New technologies: New technologies, such as wearable fitness trackers and virtual reality, could disrupt the sporting goods industry and pose new challenges for Hibbett Sports.

Other Risks

• Interest rate risk: Hibbett Sports is exposed to interest rate risk because it has a significant amount of variable rate debt. If interest rates rise, the company's interest expenses will increase, which could negatively impact its financial performance.
• Currency risk: Hibbett Sports has operations in several foreign countries, which exposes the company to currency risk. If the value of the U.S. dollar declines, the company's profits from its foreign operations will be reduced.
• Legal and regulatory risks: Hibbett Sports is subject to a variety of laws and regulations, including consumer protection laws, environmental laws, and labor laws. Any violations of these laws and regulations could result in fines or other penalties.