Quarterly earnings results are an excellent opportunity to assess a company’s performance, particularly when compared to its peers within the same sector. In this article, we will examine Sally Beauty (NYSE:SBH) and its competitors in the specialty retail industry.
What is Specialty Retail?
Specialty retailers focus on selling a specific category of products and strive to excel in that area by offering an extensive selection and expert guidance to customers. This approach enables them to stand out from general retailers, which attempt to sell everything under the sun. While e-commerce competition and dwindling retail foot traffic pose challenges for specialty retailers, the magnitude of these headwinds varies depending on their products and added value in-store.
Q3 Earnings Results: Specialty Retail Stocks
The 8 specialty retail stocks we track reported satisfactory Q3 earnings results. As a group, revenues exceeded analysts’ consensus estimates by 0.5%, while next quarter’s revenue guidance was in line with expectations.
Fortunately, the share prices of these companies have been resilient, as they are up 5.5% on average since the latest earnings reports.
Sally Beauty (NYSE:SBH)
Sally Beauty is a retailer catering to both everyday consumers and salon professionals, offering salon-quality beauty products such as makeup and haircare items. In Q3, Sally Beauty reported revenues of $935 million, which represents a 1.5% year-over-year increase. This print was in line with analysts’ expectations, making it a satisfactory quarter for the company.
"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.
Sally Beauty Total Revenue
The stock is currently trading at $10.61, which represents a 15.3% decline since reporting the Q3 earnings results.
Is now the time to buy Sally Beauty? Access our full analysis of the earnings results here (link).
Best Q3: Sportsman’s Warehouse (NASDAQ:SPWH)
Sportsman’s Warehouse is an American specialty retailer offering a diverse range of active gear, equipment, and apparel for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more.
In Q3, Sportsman’s Warehouse reported revenues of $324.3 million, which represents a 4.8% year-over-year decline. However, this print outperformed analysts’ expectations by 7.9%, resulting in the biggest analyst estimates beat among its peers.
The company had an impressive quarter with a stunning beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Sportsman’s Warehouse achieved the highest full-year revenue growth among its competitors.
Sportsman’s Warehouse Total Revenue
The stock is currently trading at $36.60, which represents a 19.1% increase since reporting the Q3 earnings results.
Read our full, actionable report on Sportsman’s Warehouse here (link).
Best Buy (NYSE:BBY)
Best Buy, once known as a stereo equipment seller, now offers a broad selection of consumer electronics, appliances, and home office products. In Q3, Best Buy reported revenues of $9.45 billion, which represents a 3.2% year-over-year decline. This number came in 2% below analysts’ expectations.
The company logged a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations. The stock is currently trading at $84.27, representing a 9.4% decline since reporting the Q3 earnings results.
Read our full, actionable report on Best Buy here (link).
Market Update
The market has experienced significant growth in 2024, fueled by recent rate cuts and a notable surge following Donald Trump’s presidential election win in November. However, the outlook for 2025 remains clouded by uncertainty related to future rate cuts, changes in trade policy, and corporate taxes.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks (link) and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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