HIBB Quick Take: I Like The GM

03/13/09 07:48AM EDT
Trendline comp trends were right in line with competitors (if not slightly better). SG&A was a bit above my model -- as is often the case with HIBB (one of my lingering concerns with the company). The 25% boost in D&A did not help either -- but I'll take that given the capex spent on JDA and DC build-out as those two items should start to help Gross Margin. Interestingly enough, the 159bp boost in Gross Margin is what made this quarter.

I like the square footage growth here, as well as the gross margin story in conjunction with cape rolling over. Tough to find that in retail these days. My lingering concern is SG&A control. If I can gain comfort that this won't eat into cash, I'll get more excited.
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