The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialty retail stocks fared in Q1, starting with National Vision (NASDAQ:EYE).
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 4 specialty retail stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 1.7%. while next quarter's revenue guidance was 0.5% above consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and specialty retail stocks have had a rough stretch, with share prices down 5.4% on average since the previous earnings results.
National Vision (NASDAQ:EYE) Operating under multiple brands, National Vision (NYSE:EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.
National Vision reported revenues of $542.5 million, up 4.2% year on year, falling short of analysts' expectations by 1.8%. Overall, it was a slower quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.
“We delivered first quarter results in line with our expectations, reflecting a sequential improvement in the second half of the period. While weather and a slower start to the tax refund season at the beginning of the quarter adversely impacted sales, our teams remained focused on the areas of our business that we can control and continued to make progress on our strategic initiatives. We built upon the actions we put in place to improve doctor recruitment and retention, and we furthered our rollout of remote technology and electronic health records in our stores. Thanks to our team’s dedication and agility, we delivered increased revenues and profitability on a continuing basis despite operating in what remains a challenging macroeconomic environment. We are committed to continuing to build our foundation for growth to drive shareholder value,” said Reade Fahs, National Vision’s CEO.
National Vision achieved the fastest revenue growth of the whole group. The stock is down 26.6% since reporting and currently trades at $13.11.
Is now the time to buy National Vision? Find out by reading the original article on StockStory, it's free. Best Q1: Petco (NASDAQ:WOOF)Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming.
Petco reported revenues of $1.53 billion, down 1.7% year on year, outperforming analysts' expectations by 1.1%. It was a decent quarter for the company with optimistic earnings guidance for the next quarter but a miss of analysts' earnings estimates.
Petco achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 42.3% since reporting. It currently trades at $3.50.
Slowest Q1: Leslie's (NASDAQ:LESL)Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.
Leslie's reported revenues of $188.7 million, down 11.4% year on year, falling short of analysts' expectations by 6.1%. It was a weak quarter for the company with a miss of analysts' gross margin estimates.
Leslie's posted the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates in the group. As expected, the stock is down 42.5% since the results and currently trades at $2.69.
Tractor Supply (NASDAQ:TSCO)Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Tractor Supply reported revenues of $3.39 billion, up 2.9% year on year, in line with analysts' expectations. More broadly, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' gross margin estimates.
Tractor Supply had the weakest full-year guidance update among its peers. The stock is up 5.2% since reporting and currently trades at $271.78.
This content was originally published on Stock Story
