What happened 

Shares of Hibbett Sports, Inc. (NASDAQ:HIBB) fell 10.8% in May, according to data provided by S&P Global Market Intelligence, after the sporting goods retailer gave investors some bad news about the first quarter.  

So what 

In late April, Hibbett said it expected first-quarter 2017 same-store sales would be down 4% to 5% and earnings would be between $0.94 and $0.97 per share. So, investors were prepared for a fairly weak quarter. 

Sporting goods sitting in a pile on the floor.

Image source: Getty Images.

When final quarterly results were released in May, the company reported same-store sales down 4.9% versus a year ago and earnings were $0.97 per share. The bottom-line number was on the high end of expectations, but the same-store sales number was at the low end of guidance and that's more concerning for investors long term. Cost-cutting can only overcome so much lost sales, so if the negative top-line trend continues, it'll be tough to break even. 

Now what 

Management said that same-store sales were down by double digits in February, so results really could have been worse. And management does expect same-store sales to be between down 1% and up 1%, although this is down from previous guidance of low-single digits in same-store sales growth. This implies a big improvement in performance throughout the year, and management is betting on a new store-to-home strategy. While results may not have been what investors expected, shares trade at just 9.2 times the midpoint of fiscal year earnings guidance of $2.35 to $2.55 per share. And that's not a bad value if the company can just maintain flat results. 

Travis Hoium 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.