Fitness financials: Hibbett Sports' Q4 sales rise 4 percent, plus Hanesbrands

Hibbett Sports’ Q4 sales rise 4 percent

Despite a challenging economic climate, Hibbett Sports (Nasdaq: HIBB) said it posted a higher fourth-quarter profit.

For the quarter ended Jan. 31, profit rose to $7.63 million, or $0.26 per share, compared with $7.61 million, or $0.25 per share on more shares outstanding, last year.

Sales for the period increased 4 percent to $147.9 million from $142.8 million. Same-store sales dropped 2.8 percent.

For the year, Hibbett posted a lower profit of $29.4 million, or $1.02 per share, compared with $30.3 million, or $0.96 per share, last year.

Sales rose 8 percent to $564.2 million from $520.7 million.

Looking forward, the company said it expects earnings between $1.03 and $1.17 and comparable store sales in the low single digits for fiscal 2010.

Hanesbrands amends credit agreement

Hanesbrands (NYSE: HBI), parent of Champion, said it has amended its first-lien credit agreement to ensure it can meet its debt requirements, adding that it has set a goal to reduce long-term debt this year by at least $300 million.

The company said it sought the changes as a precaution to make sure it had an adequate cushion to meet its debt requirements in light of the economic downturn.

Hanesbrands said the amendment delays its most restrictive debt-leverage ratio requirements to the third quarter of 2011 from the fourth quarter of 2009. It applies to the company’s $990 million of term loans A and B as well as its revolving credit facility.

Hanesbrands said the amendment also increases the company’s interest-rate spread, which is expected to boost net interest expense to about $165 million in 2009, compared with $155 million in 2008.

The company said its new debt reduction goal will bring its total long-term debt to less than $1.9 billion.

–Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.outsidebusinessjournal.com/cgi-bin/snews/stock_report.html.