Quarterly earnings results are an excellent opportunity to assess a company’s progress, especially when compared to its peers in the same sector. In this article, we will be analyzing Sally Beauty (NYSE:SBH) and the best and worst performers in the specialty retail industry.
What Are Specialty Retailers?
Specialty retailers are those that focus on selling a narrow category of products and aim to excel at it. Whether it’s eyeglasses, sporting goods, or beauty and cosmetics, these stores succeed with depth of product in their category as well as in-store expertise and guidance for shoppers who need it.
The Specialty Retail Industry
While some retailers try to sell everything under the sun, specialty retailers have carved out a niche for themselves. However, e-commerce competition exists, and waning retail foot traffic impacts these retailers. 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
As a group, the 8 specialty retail stocks we track reported satisfactory Q3 results. 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 and salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
- Revenues: $935 million, up 1.5% year on year
- Beat of analysts’ EBITDA estimates: Yes
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.
Is Now The Time To Buy Sally Beauty?
The stock is down 15.3% since reporting and currently trades at $10.61. 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.
- Revenues: $1.25 billion, up 4.5% year on year
- Beat of analysts’ EBITDA estimates: Yes
Sportsman’s Warehouse reported revenues of $1.25 billion, up 4.5% year on year. This number came in 2.5% above analysts’ expectations.
Is Now The Time To Buy Sportsman’s Warehouse?
The stock is down 12.1% since reporting and currently trades at $18.47. Access our full analysis of the earnings results here, it’s free.
Bath and Body Works (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.
- Revenues: $9.45 billion, down 3.2% year on year
- Beat of analysts’ EBITDA estimates: No
Best Buy reported revenues of $9.45 billion, down 3.2% year on year. This number came in 2% below analysts’ expectations.
Is Now The Time To Buy Best Buy?
The stock is down 9.4% since reporting and currently trades at $84.27. Access our full analysis of the earnings results 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.
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.
View Comments
Want to discuss this article with fellow investors? View comments below.
