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
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