Hibbett Sports Inc (“Hibbett Sports”) aims to be a convenient and efficient one-stop shop for the sports and leisure needs of consumers across the US.
Hibbett Sports traces its roots back to 1945 when Rufus Hibbett founded the Dixie Supply Company. The Company began selling school and team apparel in 1949.
Dixie Supply Company, later renamed Hibbett and Sons, found some early success and in 1965 opened its second store in Huntsville, Alabama, under the name Dyess and Hibbett.
In 1980, the Anderson family acquired the Company, then known as Hibbett Sporting Goods, and launched an aggressive expansion program, and in 1995, the Company was acquired by Saunders Karp and Co.
A year later, in October 1996, Hibbett Sports was listed on the NASDAQ, offering shares of its common stock at USD 16 per share.
Following its public listing, Hibbett Sports continued to expand rapidly, opening its 1000th store in 2015. The Company notably expanded its reach in 2018 through the acquisition of specialty goods retailer City Gear LLC.
Hibbett Sports continues to be one of the largest and most popular sporting goods retailers in the US, operating a store network comprising more than 1,160 stores across 35 states.
Hibbett Sports has a current market capitalisation of approximately USD 440.5 million.
Business model of Hibbett Sports
Customer Segments
Hibbett Sports serves members of the general consumer population.
Owing to the nature of its product offerings, the Company typically targets consumers who enjoy playing sports, taking part in outdoor activities – such as hiking, and other pastimes.
The Company also seeks to offer products that cater to all budgets, ranging from budget options to premium products, and serves a broad range of customer demographics.
Hibbett Sports is headquartered in the US, which remains the Company’s core market. The Company serves customers across 35 states spanning the bulk of the US.
It principally operates in small and mid-sized markets in the South, Southwest, Mid-Atlantic and Midwest regions. The Company does not appear to have any significant international operations.
Value Propositions
Hibbett Sports provides value to its customers in the following ways:
- Reputation and History – Hibbett Sports is an established retailer of sporting goods, and one of the largest and most well-known brands in its sector, with a positive track records dating back to the mid-twentieth century;
- Broad Product Range – Hibbett Sports offers customers a wide range of products catering to this involved in broad range of sports and activities, including football, baseball, basketball, volleyball, running, and softball;
- National Sales Reach – Hibbett Sports has an extensive sales reach across the US, operating a store network comprising more than 1,160 stores across 35 states, ensuring that it is able to reach a large portion of the US consumer population;
- Value and Affordability – Hibbett Sports offers a wide range of products that are targeted at customers shopping on a budget, ensuring that it has offerings for consumers across all income brackets; and
- Flexibility and Accessibility – Hibbett Sports offers its customers online shopping options, home delivery and shipping, and free returns ensuing that its customers have a convenient and enjoyable shopping experience.
Channels
Hibbett Sports makes sales primarily through its network of retail outlets across the US. The Company currently operates more than 1,160 retail outlets across the South, Southwest, Mid-Atlantic and Midwest regions of the US.
This includes 138 stores under the City Gear brand and 18 Sports Addition athletic shoe stores. The Company’s stores are staffed by dedicated sales personnel who serve customers directly and in-person.
Hibbett Sports additionally operates an online sales portal through its website, through which customers are able to browse products, place orders, and schedule deliveries on a self-service basis.
Hibbett Sports operates its own distribution and logistics infrastructure that supports its core retail operations, serving the Company’s stores and customers.
Customer Relationships
Hibbett Sports primarily serves its customers directly.
The Company’s in-store sales personnel interact personally with customers to assist in their shopping experience, responding to queries, handling complaints, and providing guidance.
Hibbett Sports operates an online store at www.hibbett.com, through which it offers a full range of products to customers on a self-service basis.
The Company also offers a membership service which can be accessed online and enables customers to access members-only rewards, benefits and deals, and to utilise order tracking and account management systems.
Hibbett Sports operates a dedicated customer support team, which operates out of the Company’s offices and provides personalised support to customers over the phone and online.
The Company is also able to communicate directly with customers through its various social media accounts, including with Facebook, Twitter, Instagram, and YouTube.
Key Activities
Hibbett Sports operates as an athletic, sports, and specialty retailer in the US.
It operates an extensive network of retail outlets, numbering more than 1,160 across 35 US states, primarily across small and medium markets the South, Southwest, Mid-Atlantic and Midwest.
This includes a number of specialty retail outlets under the City Gear brand. The Company’s primary retail format is Hibbett Sports, which is an approximately 5,000 square foot store.
The Company’s stores offer a selection of apparel, footwear, equipment, and accessories designed to appeal to a range of customers within each market.
Hibbett Sports additionally operates an online sales channel for customers nationwide. The Company is headquartered in the US and does not have any international retail operations.
Key Partners
Hibbett Sports works closely with a wide network of partner companies and organisations that help to support the Company’s core activities.
These partners can be organised broadly into the following categories:
- Supplier and Vendor Partners, comprising brands and original equipment manufacturers that provide products for sale across the Company’s network of stores, as well as third party providers of other services that support the Company’s corporate operations more broadly;
- Marketing and Branding Partners, comprising various brands and commercial enterprises with which the Company collaborates on marketing and branding projects, both in-store and externally;
- Logistics and Distribution Partners, comprising providers of logistics, storage, and distribution services that provide support to the Company’s internal distribution infrastructure, ensuring that its stores and customers are served efficiently;
- Community and Social Partners, comprising various non-profits and charitable organisations with which the Company collaborates on social and community projects across the US; and
- Strategic Partners, comprising various other commercial partners with which the Company works on business development projects.
Hibbett Sports has a number of partnerships in place. This includes tie-ups with Dreams Inc, Forum Analytics, Carlsbad Department of Development, and the American Heart Association.
Key Resources
Hibbett Sports’ business model depends on its ability to provide a wide selection of sporting goods products to customers at affordable prices and through accessible channels.
As such, the Company’s key resources are its product inventory, its store network, its online sales channel and IT infrastructure, its distribution and logistics infrastructure, its partnerships, its brands and intellectual properties, and its personnel.
Hibbett Sports notably owns and or leases a number of physical properties that are key to its operations, including corporate offices, retail outlets, and wholesale and logistics facilities. The Company also owns the Hibbett Sports and City Gear brands.
Cost Structure
Hibbett Sports incurs costs in relation to the acquisition of products and supplies, the procurement of third party services, the operation of its store and office network – including utility and occupancy costs, the development and maintenance of its online sales portal and IT infrastructure, the management of its partnerships, the implementation of marketing and advertising campaigns, the payment of salaries and benefits to its personnel.
In February 2019, Hibbett Sports recorded annual cost of goods sold in the amount of USD 679.95 million, and store operating, selling, and administrative expenses in the amount of USD 264.14 million.
Revenue Streams
Hibbett Sports generates revenue through the operation of sporting and specialty goods stores across the US.
The Company derives its revenue primarily in the form of sales fess collected directly from customers at point of sale, including at its store counters and via its online sales portal.
In February 2019, Hibbett Sports recorded annual net sales of USD 1.00 billion, up on the USD 968.22 million recorded by the Company the previous year.
The bulk of the Company’s sales come via its network of stores under the Hibbett Sports and City Gear brands.
