Hibbett Sports (HIBB) is a regional sporting goods retailer that has been growing rapidly through store expansion. The company has managed the cost side of the equation very well, which has resulted in consistent earnigns increases.
During 2000 they plan to build an additional 60 stores and expect same-store sales to increase in line with last year, about 5%. Total sales growth is expected to be about 25%.
The stock has tended to hit a seasonal low around December or early January and then rally up to 150%. What attractd me to the stock was that this seasonal pattern has consistentaly been repeated every year and the strong sales growth looks unstopable. I've talked to the CFO who says that things look in line or better than analysts forecasts for last quarter and moving forward so far this year. |
