Specialty Retail Stocks Q1 Recap: Benchmarking Best Buy (NYSE:BBY)

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at specialty retail stocks, starting with Best Buy (NYSE:BBY).

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%. 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 8.5% on average since the previous earnings results.

Best Buy (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 reported revenues of $8.85 billion, down 6.5% year on year, falling short of analysts' expectations by 1.3%. Overall, it was an ok quarter for the company with a decent beat of analysts' earnings estimates but underwhelming earnings guidance for the full year. Best Buy Total Revenue

Best Buy achieved the highest full-year guidance raise of the whole group. The stock is up 19% since reporting and currently trades at $85.51.

Is now the time to buy Best Buy? Access our full analysis of the earnings results here, it's free.

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 Total Revenue

Dick's delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.6% since reporting. It currently trades at $215.52.



Is now the time to buy Dick's? Access our full analysis of the earnings results here, it's free.

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 and gross margin estimates.

As expected, the stock is down 36.6% since the results and currently trades at $2.41.

Read our full analysis of Sportsman's Warehouse's results here.

GameStop (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 42.1% since reporting and currently trades at $26.94.

Read our full, actionable report on GameStop here, it's free.

Hibbett (NASDAQ:HIBB)

With a focus on small and mid-sized markets, Hibbett (NASDAQ:HIBB) is a specialty retailer that sells athletic apparel and footwear as well as select sports equipment.

Hibbett reported revenues of $447.2 million, down 1.8% year on year, falling short of analysts' expectations by 1.5%. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts' gross margin estimates.

The stock is up 1.3% since reporting and currently trades at $87.35.

Read our full, actionable report on Hibbett here, it's free.

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