Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Ulta (NASDAQ: ULTA) 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 8 specialty retail stocks we track reported a satisfactory Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $3.49 billion, down 1.9% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates.
Ulta delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 24.6% since reporting and currently trades at $391.41.
We think Ulta is a good business, but is it a buy today? Read our full report 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 69.9% since reporting. It currently trades at $1.64.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $1.68 billion, down 6.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ gross margin estimates.
As expected, the stock is down 22.1% since the results and currently trades at $37.
Read our full analysis of Academy Sports’s results here.
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 number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a narrow beat of analysts’ gross margin estimates.
The stock is down 11.6% since reporting and currently trades at $8.05.
Read our full, actionable report on Sally Beauty here, it’s free.
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 print topped analysts’ expectations by 1.9%. However, it was a slower quarter as it logged a miss of analysts’ EPS and EBITDA estimates.
Warby Parker scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 30.6% since reporting and currently trades at $16.48.
Read our full, actionable report on Warby Parker here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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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