Winners And Losers Of Q4: Sally Beauty (NYSE:SBH) Vs The Rest Of The Specialty Retail Stocks
Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Sally Beauty (NYSE:SBH) 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 mixed Q4; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 2.3% above consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but specialty retail stocks held their ground better than others, with share prices down 4.3% on average since the previous earnings results.
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 $931.3 million, down 2.7% year on year, in line with analyst expectations. It was a mixed quarter for the company. Although its revenue slightly beat estimates, driven by better-than-expected performance in its Beauty Systems Group which contributed to outperformance in its same-store sales, its operating margin and EPS missed Wall Street's expectations. Furthermore, its full-year free cash flow guidance fell short.
The stock is up 1.2% since the results and currently trades at $12.47.
Is now the time to buy Sally Beauty? Access our full analysis of the earnings results 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 $340.6 million, down 5.3% year on year, outperforming analyst expectations by 5.1%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
Sportsman's Warehouse delivered the biggest analyst estimates beat among its peers. The stock is down 40.2% since the results and currently trades at $3.18.
Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $466.6 million, up 1.8% year on year, falling short of analyst expectations by 2.3%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' revenue estimates.
The stock is up 3.8% since the results and currently trades at $76.11.
Read our full analysis of Hibbett's results here.
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 $1.79 billion, up 2.8% year on year, falling short of analyst expectations by 0.3%. It was a weaker quarter for the company, with underwhelming revenue and earnings guidance for the full year.
Academy Sports had the weakest full-year guidance update among its peers. The stock is down 5.2% since the results and currently trades at $67.54.
Read our full, actionable report on Academy Sports here, it's free.
Bath and Body Works (NYSE:BBWI)
Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Bath and Body Works reported revenues of $2.91 billion, flat year on year, surpassing analyst expectations by 2.6%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
The stock is up 3.8% since the results and currently trades at $50.2.
Read our full, actionable report on Bath and Body Works here, it's free.
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