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What: Shares of sporting goods retailer Hibbett Sports (NASDAQ:HIBB) soared as much as 25% on Friday after its quarterly results and outlook topped Wall Street expectations.

So what: Hibbett shares have fallen sharply over the past six months on concerns over steadily slipping market share, but today's Q3 earnings beat -- EPS of $0.74 vs. the average analyst estimate of $0.68 -- coupled with upbeat full-year guidance is quickly easing some of those worries. While gross margin during the quarter slipped 20 basis points over the year-ago period, total revenue increased 4.6% and comparable-store sales edged up 0.6%, suggesting that management's merchandising initiatives are starting to gain traction.

Now what: Management now sees full-year 2016 EPS of $2.87-$2.94, above its prior view of $2.80-$2.90 and also the Wall Street consensus of $2.84. "Looking forward, we believe that our ongoing improvements in merchandise strategies, execution and replenishment capabilities have us well-positioned for the holiday season," said President and CEO Jeff Rosenthal. When you couple Hibbett's clear turnaround progress with the stock's still-reasonable forward P/E in the low-teens, there might even be plenty of room for the stock run.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.