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 Sportsman's Warehouse (NASDAQ: SPWH) 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 9 specialty retail stocks we track reported a satisfactory Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Luckily, specialty retail stocks have performed well with share prices up 13.4% on average since the latest earnings results.
Best Q1: 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 $249.1 million, up 2% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
“In the first quarter we delivered our first positive same store sales comp in nearly four years, an indication that our transformation strategy continues to gain traction,” said Paul Stone, President and Chief Executive Officer of Sportsman’s Warehouse.
Sportsman's Warehouse achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 47.4% since reporting and currently trades at $3.45.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it’s free.
Ulta (NASDAQ: ULTA)
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Ulta reported revenues of $2.85 billion, up 4.5% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $475.25.
Is now the time to buy Ulta? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.35 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 6.5% since the results and currently trades at $47.30.
Read our full analysis of Academy Sports’s results here.
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 $3.17 billion, up 5.2% year on year. This number surpassed analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.
Dick's had the weakest full-year guidance update among its peers. The stock is up 18.9% since reporting and currently trades at $206.94.
Read our full, actionable report on Dick's here, it’s free.
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 $1.42 billion, up 2.9% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations.
The stock is up 7.6% since reporting and currently trades at $32.80.
Read our full, actionable report on Bath and Body Works here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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