Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Dick's (NYSE: DKS) and its peers.
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 9 specialty retail stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% below.
While some specialty retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.
Dick's (NYSE: DKS)
Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Dick's reported revenues of $3.89 billion, flat year on year. This print exceeded analysts’ expectations by 3.2%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.
The stock is down 8.1% since reporting and currently trades at $194.29.
Is now the time to buy Dick's? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $340.4 million, down 8.1% year on year, outperforming analysts’ expectations by 3.6%. 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 scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 80.3% since reporting. It currently trades at $1.74.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $2.79 billion, down 4.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 28.5% since the results and currently trades at $29.41.
Read our full analysis of Bath and Body Works’s results here.
Warby Parker (NYSE: WRBY)
Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Warby Parker reported revenues of $190.6 million, up 17.8% year on year. This result beat analysts’ expectations by 1.9%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Warby Parker delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 31% since reporting and currently trades at $16.39.
Read our full, actionable report on Warby Parker here, it’s free.
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 $937.9 million, flat year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ gross margin estimates.
The stock is down 14.6% since reporting and currently trades at $7.78.
Read our full, actionable report on Sally Beauty here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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.
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