Specialty Retail Stocks Q3 Highlights: Academy Sports (NASDAQ:ASO)
As specialty retail stocks’ Q3 earnings season wraps, let's dig into this quarter's best and worst performers, including Academy Sports (NASDAQ:ASO) 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 7 specialty retail stocks we track reported a mixed Q3; on average, revenues missed analyst consensus estimates by 1.1% while next quarter's revenue guidance was 2.3% above consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but specialty retail stocks held their ground better than others, with the share prices up 13.9% on average since the previous earnings results.
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 $1.40 billion, down 6.4% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
"Our sales and net earnings for the third quarter came in below expectations, primarily driven by weakening consumer sentiment coupled with above normal temperatures that negatively impacted demand for Fall product. Over the past year we have seen customers change their shopping patterns and aggregate trips into the key shopping moments on the calendar and we expect to see this pattern continue this holiday season," said Chief Executive Officer, Steve Lawrence.
The stock is up 24.5% since the results and currently trades at $62.92.
Read our full report on Academy Sports 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 $340.6 million, down 5.3% year on year, outperforming analyst expectations by 5.1%. It was a decent quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Sportsman's Warehouse pulled off the biggest analyst estimates beat among its peers. The stock is down 21.2% since the results and currently trades at $4.19.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results 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 $921.4 million, down 4.3% year on year, falling short of analyst expectations by 1.1%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.
The stock is up 50.6% since the results and currently trades at $12.24.
Read our full analysis of Sally Beauty'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 $1.56 billion, down 2.6% year on year, in line with analyst expectations. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates. The company also raised its full year 2023 EPS guidance.
The stock is up 29.7% since the results and currently trades at $42.16.
Read our full, actionable report on Bath and Body Works here, it's free.
Best Buy Co (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 Co reported revenues of $9.76 billion, down 7.8% year on year, falling short of analyst expectations by 1.4%. It was a slower quarter for the company, with a miss of analysts' revenue estimates. Full-year revenue guidance also missed analysts' expectations.
Best Buy Co had the weakest full-year guidance update among its peers. The stock is up 9.8% since the results and currently trades at $74.75.
Read our full, actionable report on Best Buy Co here, it's free.
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The author has no position in any of the stocks mentioned
