What

Shares of Hibbett Sports (NASDAQ:HIBB) dropped nearly 12% last month, according to data provided by S&P Global Market Intelligence.

So what 

The sporting goods chain's swoon accelerated after it announced preliminary first-quarter results, in which it said comparable-store sales are expected to decrease by as much as 5%. Worse still, the need for additional clearance markdowns to "liquidate aged inventory" prompted management to slash its full-year earnings per share guidance to a range of $2.35 to $2.55, well below its previous estimate of $2.65 to $2.85.

Now what 

With Hibbett's stock down another 5% so far in May, shares have now plummeted 35%  since the beginning of 2017.

Person with his head down on a table in front of a declining stock chart

Images Source: Getty Images.

Unfortunately for shareholders in the specialty retailer, the declines appear likely to continue, as shopping trends keep shifting toward e-commerce companies and away from traditional brick-and-mortar chains. As such, Hibbett investors may be best served by selling their shares and reallocating their capital to more competitively advantaged businesses.

Joe Tenebruso has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.