Hibbett Sports : 3Q 2021 Investor Presentation

Q3 FY21 EARNINGS PRESENTATION

FD DISCLOSURE | FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as our Fiscal 2021 outlook, future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, growth of the Company's business and operations, including future cash flows, revenues, and earnings, the impact of the COVID-19 pandemic on our business and other such matters, are forward-looking statements. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, or performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to: changes in general economic or market conditions that could affect overall consumer spending or our industry; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; the potential impact of new trade, tariff and tax regulations on our profitability; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer demand for our products and manage our inventory in response to changing demands; increased competition causing us to lose market share or reduce the prices of our products or to increase significantly our marketing efforts; the impact of public health crises, including the COVID-19 pandemic, or other significant or catastrophic events; fluctuations in the costs of our products; acceleration of costs associated with the protection of the health of our employees and customers; loss of key suppliers or manufacturers or failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner, including due to port disruptions; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; our ability to successfully manage or realize expected results from acquisition, including our acquisition of City Gear, and other significant investments or capital expenditures; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; risks related to data security or privacy breaches; our ability to raise additional capital required to grow our business on terms acceptable to us; our potential exposure to litigation and other proceedings; and our ability to attract key talent and retain the services of our senior management and key employees.

These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. For additional discussion on risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.

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INTRODUCTION

• Welcome
• Q3 FY21 Results
• • Sales - 21.2% comp
  • • Brick and mortar increased 17.5%
    • Omni-channelincreased 50.7%
  • GAAP Operating Income - $33.2MM
  • Non-GAAPOperating Income - $32.7MM1
  • Diluted EPS GAAP - $1.47
  • Diluted EPS Non-GAAP - $1.451
• Changes to the Merchandising Organization

1. See Appendix for a reconciliation to the most directly comparable GAAP measure.

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COVID RESPONSE

• Stores remain open where possible
• Stores continue to support the omni-channel business
• We run safe stores for the employees and the customers
• We will probably experience some short-term disruptions due to anticipated increases in virus cases
• We have seen this before and know what to do

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SALES DRIVERS

INVESTOR RELATIONS

Q3 FY21 Drivers

• New customer retention
• Market disruption
• Targeted purchases by our Merchandising Team
• Continued omni-channel adoption

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MERCHANDISING

INVESTOR RELATIONS

Category Performance

• Apparel - Mid 30's % comp growth
• Footwear - Low 20's % comp growth
• Team Sports - Low teens comp decline

Footwear and Apparel Performance

• Men's - Mid 20's % comp growth
• Women's - Low 50's % comp growth
• Kid's - High teens % comp growth

Inventory

• Declines continue to moderate in Q4
• Aged - Approaching historical lows

Visual

• 54 stores remodeled by end of FY2021
• Deploying store refresh plan in Q4

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Q3 FY21 RESULTS

INCOME STATEMENT

CASH FLOW

• Comp Sales - +21.2%
• GM % - GAAP: 38.3%; Non-GAAP: 38.1%1
• SG&A% - GAAP: 26.1%; Non-GAAP: 26.0%1
• Operating Income - GAAP: $33.2MM; Non-GAAP: $32.7MM1
• Diluted EPS - GAAP: $1.47; Non-GAAP: $1.451

1. See Appendix for a reconciliation to the most directly comparable GAAP measure.

INVESTOR RELATIONS

• Cash Flow from Operations declined $33.6MM
• CapEx - $8.3MM

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YTD RESULTS

INCOME STATEMENT

CASH FLOW / BALANCE SHEET

• Comp Sales - +22.0%
• GM % - GAAP: 35.0%; Non-GAAP: 35.3%1
• SG&A% - GAAP: 26.4%; Non-GAAP: 22.6%1
• Operating Income - GAAP: $67.4MM; Non-GAAP: $110.2MM1
• Diluted EPS - GAAP: $2.98; Non-GAAP: $4.741

1. See Appendix for a reconciliation to the most directly comparable GAAP measure.

INVESTOR RELATIONS

• Cash Flow from Operations - $145.3MM
• CapEx - $20.8MM
• Inventory - $210.9MM

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FUTURE

Drivers of Q4 FY21 Expectations

- New consumer retention - Market disruption

- Strong vendor relationships

- Business model improvements  Omni-channel consumer

experience

 In-store consumer experience  Supply chain initiatives

Q4 FY21 Earnings Guidance

- Diluted EPS $1.00 - $1.101

1. Assumes an effective tax rate of approximately 25.0% and a diluted share count of approximately 17.2 million.

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INVESTOR RELATIONS

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Appendix - Reconciliation of Q3 FY21 GAAP to Non-GAAP

Cost of goods sold Gross margin SG&A Operating income

Provision for income taxes

Net income

Diluted earnings per share

13-Week Period Ended October 31, 2020 (dollars in thousands)

GAAP Basis		Acquisition(1)		COVID-19(2)			Non-GAAP Basis
(As Reported)									(As Adjusted)
											% to Sales
$	204,347
		-	$	(693)	$	205,040		61.9%
$	127,036			-	$	(693)	$	126,343		38.1%
$	86,330	$	232			-	$	86,098		26.0%
$	33,165	$	232	$	(693)	$	32,704		9.9%
$	7,867	$	55	$	(164)	$	7,758		2.3%
$	25,266	$	177	$	(529)	$	24,914		7.5%
$	1.47	$	0.01	$	(0.03)	$	1.45

1. Excluded acquisition amounts during the 13-week period ended October 31, 2020, related to the acquisition of City Gear, LLC consist primarily of change in valuation of contingent earnout and accounting and professional fees.
2. Excluded amounts during the 13-weeks ended October 31, 2020, related to the COVID-19 pandemic, consist primarily of non-cash LCM reserve adjustments in cost of goods sold (COGS).

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Appendix - Reconciliation of YTD GAAP to Non-GAAP

Cost of goods sold Gross margin SG&A

Goodwill impairment Operating income

Provision for income taxes

Net income

Diluted earnings per share

39-Week Period Ended October 31, 2020 (dollars in thousands)

GAAP Basis		Acquisition(1)		COVID-19(2)			Non-GAAP Basis
(As Reported)									(As Adjusted)
											% to Sales
$	678,047			-	$	3,043	$	675,004		64.7%
$	364,780			-	$	3,043	$	367,823		35.3%
$	255,838	$	4,379	$	15,743	$	235,716		22.6%
$	19,661			-	$	19,661			-	-
$	67,386	$	4,379	$	38,447	$	110,212		10.6%
$	16,645	$	1,238	$	11,738	$	29,621		2.8%
$	50,334	$	3,141	$	26,709	$	80,184		7.7%
$	2.98	$	0.19	$	1.58	$	4.74

1. Excluded acquisition amounts during the 39-weeks ended October 31, 2020, related to the acquisition of City Gear, LLC consist primarily of change in valuation of contingent earnout and accounting and professional fees.
2. Excluded amounts during the 39-weeks ended October 31, 2020, related to the COVID-19 pandemic, consist primarily of net non-cash LCM reserve charges in COGS and impairment (goodwill, tradename and other assets) costs and paid-not-worked salaries net of related tax credits in SG&A.

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