Hibbett, Inc.

organization for their dedication and hard work in a challenging environment. Whether across our nearly 1,200 stores, our omnichannel platform, our logistics facilities, or the store support center, they proudly represent Hibbett with an unwavering commitment to the integrity of our brand and outstanding support for our loyal customers. I'll now turn the call over to Jared.

Thank you, Mike. Good morning. Please turn to slide five entitled Merchandising. The fourth quarter opened with a strong start to the holiday season, but faded at the end of December and in January. Footwear was our strongest category during the quarter, with comp sales down mid-single digits. Strong trends were seen in lifestyle, basketball, and running. This was offset with some weakness in the performance of some launches in the latter part of the quarter. Apparel and team sports were both negative comps for the quarter, down high single digits and low 30s, respectively. Seasonal categories were weak due to the warm and dry weather patterns. Apparel also continues to be affected by promotional activity due to elevated levels of inventory in the market. While apparel was a challenge, overall, socks and accessories continue to be strong performers. Specific to footwear and apparel, comp sales in the men's business were down mid-single digits, with kids' business down high single digits. Women's was our best performer, up low single digits. Men's was affected by high single-digit declines in apparel, with footwear down mid-single digits. Kids was down low 20s in apparel, while footwear was down mid-single digits. Women's was up low single digits, driven by a high single-digit increase in footwear, offset by a low 20s decrease in apparel results. As expected, we ended fiscal year 24 with a high teens decrease in inventory, compared to the end of fiscal 23. Inventory levels declined in the low teens from the end of the third quarter of fiscal 24. Promotional efforts as well as support from our key brand partners aided achieving our inventory reduction goals. I'll now hand it over to Bob to cover our financial results.

Thank you, Jared, and good morning. Please refer to slide six for an overview of Q4 results. As a reminder, all financial results are reported on a consolidated basis that includes both the Hibbett and City Gear brands. I would also like to call out that the fourth quarter fiscal 2024 was a 14-week quarter and fiscal 2024 was a 53-week year. Comp sales figures for the current quarter and the year exclude this extra week. Total net sales for the fourth quarter fiscal 24 increased 1.8% to $466.6 million from $458.3 million in the fourth quarter of fiscal 23. Overall comp sales decreased 6.4% versus the prior year fourth quarter. Please note that we had a very strong fourth quarter performance last year, generating overall 15.5% comp. Record mortar comp sales declined 9.2% compared to the prior year's fourth quarter, while e-commerce comp sales actually increased 6.9% compared to the same period in fiscal 2023. E-commerce sales accounted for 18.9% of total net sales during the current quarter, compared to 17.4% in the fourth quarter of fiscal 2023. Gross margin was 34.5% of net sales for the fourth quarter of fiscal 24, compared with 35.2% in the fourth quarter of last year. This approximate 70 basis point decline was driven primarily by lower average product margin of approximately 125 basis points, an approximate 55 basis point increase in store occupancy, freight, shipping, and logistics, excuse me, freight, shipping, logistics costs, and shrink have improved as percent of sales on a year-over-year basis, partially offsetting the favorable, the unfavorable average product margin and store occupancy performance. Freight was favorable by approximately 60 basis points. Logistics was favorable by approximately 30 basis points. And shrink was favorable by approximately 10 basis points. SG&A expenses were 23% of net sales for the fourth quarter fiscal 24 compared with 21.6% of net sales for the fourth quarter of last year. This approximate 140 basis point increase is primarily the result of higher store wages and the related benefit cost driven by inflation a growing store base, and increased data processing costs associated with ongoing investment in cloud-based back office systems and technology. Depreciation and amortization in the fourth quarter of fiscal 24 increased approximately $1.4 million in comparison to the same period last year, reflecting increased capital investment on store development, technology initiatives, and various infrastructure projects over the last three fiscal years. We generated $40.6 million of operating income, or 8.7% of net sales in the fourth quarter this year, compared to $50.7 million, or 11.1% of net sales in the prior year's fourth quarter. Net income for the 14 weeks ended February 3rd, 2024 was $30.9 million, or $2.55 per diluted share, compared to $38.4 million, or $2.91 per diluted share, 13 weeks ended January 28th, 2023. At the end of the fourth quarter fiscal 24, with $21.2 million of available cash, cash equivalents on our unaudited condensed consolidated balance sheet, And forty five point three million of debt outstanding on a one hundred and sixty million. Dollar lot unsecured line of credit that inventory at the end of the fourth quarter was three hundred forty four point three million and eighteen point two percent decrease. From the beginning of the year, capital expenditures during the fourth quarter were twenty point seven million with approximately seventy three percent attributed store development projects, including new stores, remodels, relocations and new signage. We opened 11 net new stores in the fourth quarter, bringing the store base to 1,169 in 36 states. Made a recurring quarterly dividend in the fourth quarter in the amount of 25 cents per eligible common share for a total outflow of approximately 2.9 million. There were no repurchases of shares during the fourth quarter, similar to the prior year fourth quarter. Moving on to slide seven to discuss full year results. Total net sales for the 53 weeks of fiscal 24 increased 1.2%, to 1.73 billion, while full-year comparable sales decreased 3.1% versus the equivalent 52 weeks in fiscal 23. Brick-and-mortar comp sales declined 4.4%, and e-commerce comp sales increased 4.1% compared to the prior year. Full-year gross margin was 33.8% of net sales versus 35.2% of net sales last year. This is an approximate 140 basis point decline. The decline in year-over-year gross margin was primarily due to lower average product margin of approximately 210 basis points and higher store occupancy costs of approximately 40 basis points. On the positive side, we experienced year-over-year improvement in freight, shipping, and logistics costs as a percent of net sales. Freight was favorable by approximately 70 basis points, logistics was favorable by approximately 30 basis points, and shrink was favorable by approximately 10 basis points. SG&A expenses were 23% of net sales for the 53 weeks ended February 3, 24, compared to 22.8% in the 52 weeks ended January 28, 23. The approximate increase of 20 basis points is primarily the result of increased store wages and data processing costs partially offset by lower professional fees and advertising. We generated $137 million of operating income, or 7.9% of net sales, during fiscal 24. compared to 168.4 million, or 9.9% of net sales in fiscal 23. Net income for the current year was 103.2 million, or $8.17 per diluted share, compared with 128.1 million, or $9.62 per diluted share in the prior year. Capital expenditures in fiscal 24 were 57.9 million, compared to 62.8 million in fiscal 23. Current year capital expenditures were predominantly related to store initiatives, including new store openings, relocations, expansions, remodels, and technology upgrades. For the year, our store count increased by a net of 36 units, comprised of 44 new locations and eight closures. Our total store count stands at 1,169 at the end of fiscal 24. On a full year basis, we repurchased approximately 1.16 million shares under our share repurchase plan at a total cost of 53.2 million. We paid four recurring quarterly dividends throughout fiscal 24 for a total outflow of 12.4 million. Fifty-third week in fiscal 24 resulted in net product sales of approximately 22.9 million. This incremental week contributed approximately 2.6 to 2.8 million in net income to both the fourth quarter and the full year. From a diluted EPS standpoint, the 53rd week impacted the fourth quarter by approximately 21 to 23 cents, and impacted the full year by approximately $0.21 to $0.22. In addition, we recorded a $3.5 million increase to revenue in the fourth quarter due to a change in our estimate of gift card breakage. This change in estimate was supported by the historical redemption pattern of gift cards outstanding is applied prospectively. The impact of the fourth quarter EPS was approximately $0.23, and the full year impact was approximately $0.22. I'll now turn the call over to Bill Quinn to discuss consumer insights.