Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Sally Beauty (NYSE:SBH) and the best and worst performers in the specialty retail industry.
Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it’s eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores.
The 8 specialty retail stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.
Sally Beauty (NYSE:SBH)
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
Sally Beauty reported revenues of $935 million, up 1.5% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EBITDA estimates.
“We are pleased to conclude our fiscal year with strong fourth quarter results, reflecting continued momentum across both our Sally Beauty and Beauty Systems Group segments,” said Denise Paulonis, president and chief executive officer.
Unsurprisingly, the stock is down 15.3% since reporting and currently trades at $10.61.
Is now the time to buy Sally Beauty? Access our full analysis of the earnings results here, it’s free.
Best Q3: Sportsman's Warehouse (NASDAQ:SPWH)
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Sportsman's Warehouse reported revenues of $324.3 million, down 4.8% year on year, outperforming analysts’ expectations by 7.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Sportsman's Warehouse achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2.43.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: Academy Sports (NASDAQ:ASO)
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Academy Sports reported revenues of $1.34 billion, down 3.9% year on year, falling short of analysts’ expectations by 2.9%. It was a softer quarter as it posted a miss of analysts’ EBITDA and EPS estimates.
Academy Sports delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 12.9% since the results and currently trades at $56.85.
Read our full analysis of Academy Sports’s results here.
Bath and Body Works (NYSE:BBWI)
Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Bath and Body Works reported revenues of $1.61 billion, up 3.1% year on year. This print topped analysts’ expectations by 1.9%. It was a strong quarter as it also logged EPS guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
Bath and Body Works achieved the fastest revenue growth among its peers. The stock is up 19.1% since reporting and currently trades at $36.60.
Read our full, actionable report on Bath and Body Works here, it’s free.
Best Buy (NYSE:BBY)
With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Best Buy reported revenues of $9.45 billion, down 3.2% year on year. This number came in 2% below analysts' expectations. It was a slower quarter as it also logged a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
The stock is down 9.4% since reporting and currently trades at $84.27.
Read our full, actionable report on Best Buy here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
