netrashetty
Netra Shetty
Hibbett Sports (NASDAQ: HIBB) sells sporting goods in 688 stores in 23 states, predominately in the Sun Belt, Mid-Atlantic, and lower Midwest regions of the U.S.A. It focuses on markets where there is little to no direct competition - small counties with as few as 30,000 people - and as a result, its stores are smaller than those of major sporting goods retailers Dick's Sporting Goods (50,000 square feet) and Big 5 (11,000 square feet).[1] It also differs from its peers in selling only full-priced products rather than a mix of premium and discount goods.
For the entire fiscal 2010, net sales were $593.5 million, a 5.2% increase from the $564.2 million the year before, driven by a 0.7% increase in comparable store sales, which was primarily driven by the high demand for University of Alabama and New Orleans Saints merchandise following their respective championship seasons.[2] Net income in fiscal 2010 increased 10.5% to $32.5 million compared with $29.4 million in fiscal 2009.[3]
In Q3 2011, Hibbett reported net sales of $167.4 million, up 14.8% from the $145.9 million the year before, driven by an increase of 12.5% in comparable store sales. Net income increased 43.5% to $12.6 million compared with $8.8 million for the third quarter of fiscal 2010.[4] The revenue beat analyst estimates of $161.61 million, based on a 12.5% increase in same-store sales and the opening of 17 new stores.[5]
Hibbett mainly competes with local independent sporting goods stores rather than national chains because of its small store size, and its lack of discount offerings. Hibbett depends on discretionary income to build its sales - its products are not necessary commodities. As such, the company is exposed to a hurting U.S. economy, the credit crunch, and seasonal fluctuations.
Business Overview
Hibbett Store Locations, fiscal year 2009[6]
Hibbett Sports sells soft goods (athletic and sport apparel/footwear) and hard goods (durable items such as baseball bats, footballs, etc.), all of which are circulated from the company's 220,000 square foot distribution center in Birmingham, Alabama.[7] Hibbett sells its products at individual stores, through its website, hibbett.com, and through its team sales division, Hibbett Team Sports, Inc. The company emphasizes team sports and is a leading supplier of customized athletic apparel, equipment, and footwear to athletic and youth programs primarily in Alabama.
Unlike other sporting goods chains who offer discounted merchandise, Hibbett sells all of its products at full price. With an average store space of 5,000 square feet, Hibbett stores are much smaller than other sporting goods venues--Big 5 stores average 11,000 square feet, while a typical Dick's Sporting Goods store measures 50,000 square feet.[8][9][10] The size and location of Hibbett stores deliver low operating costs and allow the company to target counties that represent between 30,000 and 100,000 people--something its larger competitors cannot do.[11] The company relies on strategically located distribution centers to move new products to its rural locations.
Hibbett primarily operates in strip centers, anchored by Wal-Mart and enclosed malls. Although Hibbett seeks the Wal-Mart customer, the two companies' strategies greatly differ. Wal-Mart sells hunting, fishing, and camping equipment, in addition to food and household appliances, while Hibbett focuses on equipment for team sports. Wal-Mart carries about 30 types of baseball gloves; Hibbett carries about 80. Wal-Mart focuses on discounted items as a self-service store, whereas Hibbett offers fully-priced products as a full-service store.
In fiscal 2009 (February 2008 to January 2009), Hibbett sold over $564.1 million in products with a net income of $29.45 million. [12]
Despite the 2008 economic recession, Hibbett has consistently produced high operating margins compared to other public sporting goods companies:
The Hartford Financial Services Group (NYSE: HIG) is one of the largest multi-line insurance and investment companies that operates primarily in the United States, with over $307 billion in total assets as of December 31, 2009.[1] The Hartford operates in two broad segments: Life and Property & Casualty (P&C). The Hartford has offered its services in the United States since 1810, but since has expanded its operations to Canada, Japan, Brazil, Ireland, and the United Kingdom [2].
The Hartford's relationship with the AARP helps the company to differentiate its insurance products, which approach being treated as commodities. Personal Line written premiums, directly related to the AARP deal, increased by 3%, and retirement plan deposits increased to $2.3 billion. Given that there were over 38 million people who were 65 or older in 2009, and that this statistic is projected to double by 2050, the Hartford is positioned to exploit this competitive advantage [3].
Business Overview
The Hartford is one of the seven largest multi-line insurance companies, a company that offers both life and non-life policies, in the United States. The company's two major operations, Life and Property & Casualty, are further divided into eleven reporting segments. Although the company has expanded its international operations, over 95% of revenue was earned in North America.
Business and Financial Metrics
Contents
1 Business Overview
1.1 Business and Financial Metrics
1.2 Business Segments
1.2.1 Life
1.2.2 Property & Casualty
1.2.3 Corporate
2 Key Trends and Forces
2.1 Financial crisis causes The Hartford's investment portfolio to decline in value
2.2 The Hartford is positioned to capitalize on the coming demographic shift in the United States with the retirement of Baby Boomers
3 Competition
4 References
Hartford's total revenues more than doubled between 2008 and 2009, as it increased from $9.2 billion in 2008 to $24.7 billion in 2009. This increase was largely a result of Hartford avoiding huge losses that it was forced to take in 2008 as a result of the 2008 Financial Crisis. Unsurprisingly, as a result of this huge increase in revenues, Hartford was able to improve its financial position. In 2009, Hartford posted a net loss of $887 million, a large decline from its 2008 net loss of $2.75 billion.
Business Segments
Life
The Hartford's life insurance operations is carried out by the company's indirect wholly-owned subsidiary, Hartford Life, Inc., which can further be broken down into six reporting segments: Retail Products Group (“Retail”), Retirement Plans, Institutional Solutions Group (“Institutional”), Individual Life, Group Benefits and International. The Life segment provides investment products, such as variable annuities, fixed annuities, mutual funds, and retirement plan services individual life policies group benefit products, such as group life and group disability policies and variable corporate-owned life insurance (COLI) policies.
Property & Casualty
The Property & Casualty operation is conducted through the Hartford itself, and is made up of five unique reporting segments: the underwriting segments of Personal Lines, Small Commercial, Middle Market and Specialty Commercial (collectively “Ongoing Operations”); and the Other Operations segment. The P&C segment is among of the top ten in the U.S., based on net premiums written.[4] Personal Lines writes automobile and homeowners insurance; Small Commercial and Middle Market offer insurance coverage to small and middle market businesses in the United States, respectively; Specialty Commercial offers customized insurance products and risk management services to primarily large companies; and Other Operations consists of The Hartford's discontinued businesses that still have outstanding policies.
Corporate
Though not part of the Hartford's core business segments, the Corporate segment includes operations related to capital structure financing, such as corporate debt financing and interest expenses accompanied by this.
Key Trends and Forces
Financial crisis causes The Hartford's investment portfolio to decline in value
The Hartford has a $90 billion investment portfolio, which is susceptible to market risk that can lead to significant losses for the company. Although equity and fixed income securities related to the financial services sector make up only 9% of The Hartford's investment portfolio, these investments nonetheless caused pre-tax impairments of $2.4 billion. The Hartford has since begun the process of divesting itself of financial services companies and reducing risk and leverage in its investment portfolio, the company still is significantly influenced by its investment decisions and market risk.
The Hartford is positioned to capitalize on the coming demographic shift in the United States with the retirement of Baby Boomers
The Hartford's long-standing partnership with the AARP, which has existed since 1984 and entitles The Hartford to be the AARP's exclusive provider of Automobile and Homeowners Insurance, provides the company with a competitive advantage. The AARP is a 40 million member organization dedicated to helping people over 50 years old improve the quality of their lives.[5] In 2008, there were about 38 million people who were over 65 year old; however, by 2050, this population figure is projected to double.[6] The Hartford's strong branding with this segment of the population through the AARP will help the company to distinguish its products in an otherwise competitive industry, in which products approach being treated as commodities.[7] The partnership between The Hartford and AARP has recently been renewed for a third time, and will continue until at least January 2020.[8] Benefits gained by AARP members who also have insurance through The Hartford include personalized customer service and access to a gerontology team that works for the AARP.[8] Given that the AARP's current membership base is 38 million,[9] and that by the end of the current contract, over one-third of all Americans will be eligible for the AARP, this exclusive partnership provides The Hartford with comparative advantage and a catalyst for growth in all its business segments.[10]
Competition
As The Hartford offers both Life and P&C insurance it competes either directly or offers similar financial products to many different insurance companies. Five of The Hartford's most significant competitors are:
American International Group (AIG): AIG offers four main operating segments, of which its General Insurance and Life Insurance & Retirement Services segments most directly compete with The Hartford. Like The Hartford, AIG also has a significant presence in Japan. In September 2008, as part of a response to over $18 billion in losses caused by the company's exposure to credit-default swaps, the Federal Reserve granted AIG an $85 billion loan, and in return, the U.S. Government was given a 79.9% equity stake in the company.[11]
Berkshire Hathaway (BRK): Berkshire Hathaway, managed by famous value-investor Warren Buffett, directly competes with The Hartford through its Insurance group.
MetLife (MET): MetLife competes with The Hartford in both Life and P&C insurance. Its life insurance, automobile and homeowner insurance, and annuities businesses all offer substitutes for The Hartford's products.
Allstate (ALL): Allstate competes with both the Life and P&C divisions of The Hartford, and offers such products as automobile and homeowner's insurance and retirement products.
For the entire fiscal 2010, net sales were $593.5 million, a 5.2% increase from the $564.2 million the year before, driven by a 0.7% increase in comparable store sales, which was primarily driven by the high demand for University of Alabama and New Orleans Saints merchandise following their respective championship seasons.[2] Net income in fiscal 2010 increased 10.5% to $32.5 million compared with $29.4 million in fiscal 2009.[3]
In Q3 2011, Hibbett reported net sales of $167.4 million, up 14.8% from the $145.9 million the year before, driven by an increase of 12.5% in comparable store sales. Net income increased 43.5% to $12.6 million compared with $8.8 million for the third quarter of fiscal 2010.[4] The revenue beat analyst estimates of $161.61 million, based on a 12.5% increase in same-store sales and the opening of 17 new stores.[5]
Hibbett mainly competes with local independent sporting goods stores rather than national chains because of its small store size, and its lack of discount offerings. Hibbett depends on discretionary income to build its sales - its products are not necessary commodities. As such, the company is exposed to a hurting U.S. economy, the credit crunch, and seasonal fluctuations.
Business Overview
Hibbett Store Locations, fiscal year 2009[6]
Hibbett Sports sells soft goods (athletic and sport apparel/footwear) and hard goods (durable items such as baseball bats, footballs, etc.), all of which are circulated from the company's 220,000 square foot distribution center in Birmingham, Alabama.[7] Hibbett sells its products at individual stores, through its website, hibbett.com, and through its team sales division, Hibbett Team Sports, Inc. The company emphasizes team sports and is a leading supplier of customized athletic apparel, equipment, and footwear to athletic and youth programs primarily in Alabama.
Unlike other sporting goods chains who offer discounted merchandise, Hibbett sells all of its products at full price. With an average store space of 5,000 square feet, Hibbett stores are much smaller than other sporting goods venues--Big 5 stores average 11,000 square feet, while a typical Dick's Sporting Goods store measures 50,000 square feet.[8][9][10] The size and location of Hibbett stores deliver low operating costs and allow the company to target counties that represent between 30,000 and 100,000 people--something its larger competitors cannot do.[11] The company relies on strategically located distribution centers to move new products to its rural locations.
Hibbett primarily operates in strip centers, anchored by Wal-Mart and enclosed malls. Although Hibbett seeks the Wal-Mart customer, the two companies' strategies greatly differ. Wal-Mart sells hunting, fishing, and camping equipment, in addition to food and household appliances, while Hibbett focuses on equipment for team sports. Wal-Mart carries about 30 types of baseball gloves; Hibbett carries about 80. Wal-Mart focuses on discounted items as a self-service store, whereas Hibbett offers fully-priced products as a full-service store.
In fiscal 2009 (February 2008 to January 2009), Hibbett sold over $564.1 million in products with a net income of $29.45 million. [12]
Despite the 2008 economic recession, Hibbett has consistently produced high operating margins compared to other public sporting goods companies:
The Hartford Financial Services Group (NYSE: HIG) is one of the largest multi-line insurance and investment companies that operates primarily in the United States, with over $307 billion in total assets as of December 31, 2009.[1] The Hartford operates in two broad segments: Life and Property & Casualty (P&C). The Hartford has offered its services in the United States since 1810, but since has expanded its operations to Canada, Japan, Brazil, Ireland, and the United Kingdom [2].
The Hartford's relationship with the AARP helps the company to differentiate its insurance products, which approach being treated as commodities. Personal Line written premiums, directly related to the AARP deal, increased by 3%, and retirement plan deposits increased to $2.3 billion. Given that there were over 38 million people who were 65 or older in 2009, and that this statistic is projected to double by 2050, the Hartford is positioned to exploit this competitive advantage [3].
Business Overview
The Hartford is one of the seven largest multi-line insurance companies, a company that offers both life and non-life policies, in the United States. The company's two major operations, Life and Property & Casualty, are further divided into eleven reporting segments. Although the company has expanded its international operations, over 95% of revenue was earned in North America.
Business and Financial Metrics
Contents
1 Business Overview
1.1 Business and Financial Metrics
1.2 Business Segments
1.2.1 Life
1.2.2 Property & Casualty
1.2.3 Corporate
2 Key Trends and Forces
2.1 Financial crisis causes The Hartford's investment portfolio to decline in value
2.2 The Hartford is positioned to capitalize on the coming demographic shift in the United States with the retirement of Baby Boomers
3 Competition
4 References
Hartford's total revenues more than doubled between 2008 and 2009, as it increased from $9.2 billion in 2008 to $24.7 billion in 2009. This increase was largely a result of Hartford avoiding huge losses that it was forced to take in 2008 as a result of the 2008 Financial Crisis. Unsurprisingly, as a result of this huge increase in revenues, Hartford was able to improve its financial position. In 2009, Hartford posted a net loss of $887 million, a large decline from its 2008 net loss of $2.75 billion.
Business Segments
Life
The Hartford's life insurance operations is carried out by the company's indirect wholly-owned subsidiary, Hartford Life, Inc., which can further be broken down into six reporting segments: Retail Products Group (“Retail”), Retirement Plans, Institutional Solutions Group (“Institutional”), Individual Life, Group Benefits and International. The Life segment provides investment products, such as variable annuities, fixed annuities, mutual funds, and retirement plan services individual life policies group benefit products, such as group life and group disability policies and variable corporate-owned life insurance (COLI) policies.
Property & Casualty
The Property & Casualty operation is conducted through the Hartford itself, and is made up of five unique reporting segments: the underwriting segments of Personal Lines, Small Commercial, Middle Market and Specialty Commercial (collectively “Ongoing Operations”); and the Other Operations segment. The P&C segment is among of the top ten in the U.S., based on net premiums written.[4] Personal Lines writes automobile and homeowners insurance; Small Commercial and Middle Market offer insurance coverage to small and middle market businesses in the United States, respectively; Specialty Commercial offers customized insurance products and risk management services to primarily large companies; and Other Operations consists of The Hartford's discontinued businesses that still have outstanding policies.
Corporate
Though not part of the Hartford's core business segments, the Corporate segment includes operations related to capital structure financing, such as corporate debt financing and interest expenses accompanied by this.
Key Trends and Forces
Financial crisis causes The Hartford's investment portfolio to decline in value
The Hartford has a $90 billion investment portfolio, which is susceptible to market risk that can lead to significant losses for the company. Although equity and fixed income securities related to the financial services sector make up only 9% of The Hartford's investment portfolio, these investments nonetheless caused pre-tax impairments of $2.4 billion. The Hartford has since begun the process of divesting itself of financial services companies and reducing risk and leverage in its investment portfolio, the company still is significantly influenced by its investment decisions and market risk.
The Hartford is positioned to capitalize on the coming demographic shift in the United States with the retirement of Baby Boomers
The Hartford's long-standing partnership with the AARP, which has existed since 1984 and entitles The Hartford to be the AARP's exclusive provider of Automobile and Homeowners Insurance, provides the company with a competitive advantage. The AARP is a 40 million member organization dedicated to helping people over 50 years old improve the quality of their lives.[5] In 2008, there were about 38 million people who were over 65 year old; however, by 2050, this population figure is projected to double.[6] The Hartford's strong branding with this segment of the population through the AARP will help the company to distinguish its products in an otherwise competitive industry, in which products approach being treated as commodities.[7] The partnership between The Hartford and AARP has recently been renewed for a third time, and will continue until at least January 2020.[8] Benefits gained by AARP members who also have insurance through The Hartford include personalized customer service and access to a gerontology team that works for the AARP.[8] Given that the AARP's current membership base is 38 million,[9] and that by the end of the current contract, over one-third of all Americans will be eligible for the AARP, this exclusive partnership provides The Hartford with comparative advantage and a catalyst for growth in all its business segments.[10]
Competition
As The Hartford offers both Life and P&C insurance it competes either directly or offers similar financial products to many different insurance companies. Five of The Hartford's most significant competitors are:
American International Group (AIG): AIG offers four main operating segments, of which its General Insurance and Life Insurance & Retirement Services segments most directly compete with The Hartford. Like The Hartford, AIG also has a significant presence in Japan. In September 2008, as part of a response to over $18 billion in losses caused by the company's exposure to credit-default swaps, the Federal Reserve granted AIG an $85 billion loan, and in return, the U.S. Government was given a 79.9% equity stake in the company.[11]
Berkshire Hathaway (BRK): Berkshire Hathaway, managed by famous value-investor Warren Buffett, directly competes with The Hartford through its Insurance group.
MetLife (MET): MetLife competes with The Hartford in both Life and P&C insurance. Its life insurance, automobile and homeowner insurance, and annuities businesses all offer substitutes for The Hartford's products.
Allstate (ALL): Allstate competes with both the Life and P&C divisions of The Hartford, and offers such products as automobile and homeowner's insurance and retirement products.