What happened

Shares of sporting-goods retailer Hibbett Sports, Inc. (NASDAQ:HIBB) fell as much as 30.8% in trading Friday after the company reported fiscal second-quarter 2019 results. At 3:30 p.m. EDT, shares were still down 29.4% on the day and showed no signs of a quick recovery.

So what

Net sales for the quarter were up 12.3% to $211.1 million, on the back of a 4.1% increase in comparable-store sales. However, net loss was $1.2 million, or $0.06 per share. Analysts were expecting sales of $215.6 million and positive earnings of $0.07 per share, so the company missed expectations by a wide margin despite the growth.

Sports equipment on a wooden floor

Image source: Getty Images.

What really disappointed investors was a reduction in comparable-store sales for fiscal 2019 to between negative 1% and positive 1%, which reduced the top end of guidance by 100 basis points. Guidance for earnings per share was also reduced from a range of $1.65 to $1.95 to a range of $1.57 to $1.75.

Now what

Hibbett was trying to sell investors on the idea that it could grow in-store and online sales this year, and these results undercut that thesis. In particular, the bottom-line reduction in guidance doesn't give investors any confidence the stock deserves the nearly 200% gain it had recently over its 52-week low. Hibbett isn't in dire straits yet, but the flat comparable-store sales and falling guidance have me worried enough to stay away from the stock.

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