Earnings results often indicate what direction a company will take in the months ahead. With Q1 now 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 9 specialty retail stocks we track reported a slower Q1; on average, revenues missed analyst consensus estimates by 1.4%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and specialty retail stocks have had a rough stretch, with share prices down 7.2% on average since the previous 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 $2.73 billion, up 3.5% year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company: Although its EPS beat analysts' estimates thanks to its better-than-expected same-store sales growth (1.6% vs estimates of 1.5%), its full-year revenue and earnings guidance missed Wall Street's projections.
“The Ulta Beauty team delivered net sales growth of 3.5% and comparable sales growth of 1.6% in a dynamic operating environment. I am proud of how our teams continued to execute our transformational agenda, adapt to a rapidly evolving marketplace, and thoughtfully manage expenses across the enterprise,” said Dave Kimbell, chief executive officer.
Ulta delivered the weakest full-year guidance update of the whole group. The stock is up 1.9% since reporting and currently trades at $393.25.
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Best Q1: 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 $3.02 billion, up 6.2% year on year, outperforming analysts' expectations by 2.7%. It was a strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts' earnings estimates.
Dick's achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $215.99.
Weakest 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 $244.2 million, down 8.7% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 37.9% since the results and currently trades at $2.36.
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 $1.36 billion, down 1.4% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 4.5% since reporting and currently trades at $55.85.
GameStop (NYSE:NYSE:GME) Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.
GameStop reported revenues of $881.8 million, down 28.7% year on year, falling short of analysts' expectations by 11.4%. Zooming out, it was a weak quarter for the company with a miss of analysts' earnings estimates.
GameStop had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 46.5% since reporting and currently trades at $24.91.
This content was originally published on Stock Story
