Hibbett Stock

Hibbett, Inc. operates as an athletic-inspired fashion retailer with stores under the Hibbett, City Gear and Sports Additions banners, primarily located in underserved communities. The company has convenient locations, personalized customer service and access to coveted footwear, apparel and equipment from top brands like Nike, Jordan and adidas.

Business Strategy

The company targets underserved markets with branded products and provides a high level of customer service. This market strategy establishes greater customer, vendor and landlord recognition as a leading specialty retailer in these communities. The company’s stores offer a core merchandising mix of premium athletic branded footwear, apparel, accessories and team sports equipment designed to appeal to the Gen Z customers within each market. The company strives to meet the fashion and technical demands of its customers.

Growth Strategy

The company identifies markets for its stores under a clustered expansion program. This approach primarily focuses on opening new stores within close proximity of existing locations, allowing the company to take advantage of efficiencies in logistics, marketing and regional management. It also aids the company in building a better understanding of appropriate merchandise selection for the local market. In addition to proximity to existing stores, it also considers population, economic conditions, local competitive dynamics, availability of suitable real estate and potential for return on investment when evaluating potential markets.

The company recognizes that even though its core customer is in underserved markets, they are digitally savvy. The company’s customer has high expectations that are constantly evolving, including the ability to engage with it in multiple ways. As a result, the company continues to make investments in omni-channel, as well as its core e-commerce experience.

Logistics

The company maintains a full-line wholesale and logistics facility in Alabaster, Alabama (a suburb of Birmingham) where it receives and ships most of its merchandise. In addition, it utilizes a third-party logistics facility in Memphis, Tennessee to increase efficiencies and to improve time to market. For key products, the company maintains backstock at the Alabaster and Memphis facilities. This product is allocated and shipped to stores through an automatic replenishment system based on inventory levels and sales. Merchandise is delivered to stores, and transferred between stores, via small package carriers, Company operated vehicles or third-party logistics providers (which also deliver initial new store inventories).

Merchandise

The company’s merchandising strategy emphasizes a TOE-TO-HEAD approach. The company provides a broad assortment of premium brand name footwear, apparel, accessories and team sports equipment at competitive prices in a full service omni-channel environment. The assortment of brand name merchandise the company offers consistently exceeds the merchandise selection carried by most of its competitors, particularly in its underserved markets and neighborhood centers. Many of these brand name products have limited availability and/or are technical in nature requiring considerable sales assistance. The company coordinates with its vendors to educate the sales staff at the store level on new products and trends.

Although the core merchandise assortment tends to be similar for each store, it is somewhat differentiated by the Hibbett or City Gear brands. Each brand utilizes important demographic, local and/or regional considerations. Accordingly, the comopany offers products that reflect preferences for particular demographics, as well as interests from each community.

Marketing and Promotion

The company’s target customer is Gen Z, therefore its marketing efforts are focused on acquiring and retaining Gen Z customers. As such, the company has invested in and expanded its digital marketing capabilities and its hyperlocal marketing efforts that help it connect with its communities. The company’s loyalty program represented over half of overall sales in Fiscal 2023 as a result of improvements to the loyalty program which drove member acquisition and retention.

Trademarks

A list of active trademarks registered and owned by the company includes HIBBETT SPORTS, Registration No. 2717584; SPORTS ADDITIONS, Registration No. 1767761; HIBBETT, Registration No. 3275037; SOLE SCHOOL, Registration No. 6549068; City G.E.A.R, Registration No. 4398655; City G.E.A.R., Registration No. 4413864; CITY GEAR, Registration No. 4675462; City GEAR, Registration No. 5008316; DEVEROES, Registration No. 3479737; GRINDHOUSE, Registration No. 5107399; GRINDHOUSE DENIM, Registration No. 5107398; TOE-TO-HEAD, Registration No. 6873901; TOE-2-HEAD, Registration No. 6873900; and T2H, Registration No. 6873899.

Seasonality

The company has historically experienced seasonal fluctuations. The company typically experience higher net sales in early spring due to spring sports and annual tax refunds, late summer due to back-to-school shopping and winter due to holiday shopping.

History

The company was founded in 1945. The company was incorporated in 2007. It was formerly known as Hibbett Sports, Inc. and changed its name to Hibbett, Inc. in 2021.