(a) Dismissal of Previous Independent Registered Public Accounting Firm.

The Audit Committee of the Board of Directors (Audit Committee) of Hibbett Sports, Inc. (Company) conducted an evaluation to determine the Company’s independent registered public accounting firm for the fiscal year ending January 30, 2021. Several firms were invited to participate in this process, including KPMG LLP (KPMG), which has served as the Company’s independent registered public accounting firm since 2002.

As a result of this process, following the review and evaluation of the proposals from the participating firms, on July 3, 2020, the Company dismissed KPMG as its independent registered public accounting firm, effective as of such date. The Audit Committee approved the dismissal of KPMG.

The reports of KPMG on the Company’s consolidated financial statements as of February 1, 2020 and February 2, 2019, and the report of KPMG on the effectiveness of internal control over financial reporting as of February 1, 2020 did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that KPMG LLP’s report on the Company’s consolidated financial statements as of and for the years ended February 1, 2020 and February 2, 2019, contained a separate paragraph indicating that as discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for leases as of February 3, 2019, due to the adoption of Accounting Standards Update 2016-02, Topic 842, Leases.

During the fiscal years ended February 1, 2020 and February 2, 2019, and the subsequent interim period through July 3, 2020, there were no (i) disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures which, if not resolved to KPMG’s satisfaction, would have caused KPMG to make reference thereto in its report or (ii) “reportable events” within the meaning of Item 304(a)(1)(v) of Regulation S-K.

to Item 304(a)(3) of Regulation S-K, the Company has provided KPMG with a copy of the foregoing disclosures and requested that it furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements and, if not, stating the respects in which it does not agree. A copy of such letter is filed as Exhibit 16.1 to this Current Report on Form 8-K.

(b) Appointment of New Independent Registered Public Accounting Firm.

Following review of proposals from the independent registered public accounting firms that participated in the evaluation process, on July 3, 2020, the Company engaged Ernst & Young LLP (EY) as its independent registered public accounting firm for the fiscal year ended January 30, 2021. The decision to engage EY as the Company’s independent registered public accounting firm was approved by the Audit Committee.

During the fiscal years ended February 1, 2020 and February 2, 2019, and the subsequent interim period through July 3, 2020, neither the Company nor anyone on its behalf consulted with EY regarding either (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and no written report was provided to the Company or oral advice was provided that EY concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) or a “reportable event” within the meaning of Item 304(a)(1)(v) of Regulation S-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Letter from KPMG LLP to the Securities and Exchange Commission dated July 7, 2020

HIBBETT SPORTS INC Exhibit
EX-16.1 2 ex16.htm EX-16.1 KPMG LETTER DocumentExhibit 16.1July 7,…
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About Hibbett Sports, Inc. (NASDAQ:HIBB)

Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets in the South, Southwest, Mid-Atlantic and Midwest regions of the United States. The Company operates approximately 1,040 stores in over 30 states, which consists of approximately 1,020 Hibbett Sports stores and over 20 Sports Additions athletic shoe stores. It sells merchandise of various brands, such as Nike, Under Armour, Reebok, adidas, Easton, The North Face and Yeti. It maintains a single wholesale and logistics facility in Alabaster, Alabama. Hibbett Sports stores offer a merchandising mix of localized apparel, footwear, equipment and accessories. Sports Additions store consists of a merchandising mix of athletic footwear, and caps and a limited assortment of apparel. Hibbett Team Sales, Inc. (Team), a subsidiary of the Company, is a supplier of customized athletic apparel, equipment and footwear to school athletic programs in Alabama and parts of Georgia, Florida and Mississippi.