A Look Back at Specialty Retail Stocks' Q3 Earnings: Bath and Body Works (NYSE:BBWI) Vs The Rest Of The Pack

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 the specialty retail stocks have fared in Q3, starting with Bath and Body Works (NYSE:BBWI).

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 7 specialty retail stocks we track reported a mixed Q3; on average, revenues missed analyst consensus estimates by 1.1% while next quarter's revenue guidance was 2.3% above consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but specialty retail stocks held their ground better than others, with the share prices up 13.9% on average since the previous earnings results.

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 $1.56 billion, down 2.6% year on year, in line with analyst expectations. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.

Gina Boswell, CEO of Bath & Body Works, commented, “The team delivered third quarter net sales in line with the high end of our expectations and earnings that exceeded our plans. Our performance in the quarter was marked by strong merchandise margin improvement and the ongoing benefits of our cost optimization initiatives. As we close out the year, our team remains focused on delivering a great Holiday assortment and omnichannel experience for customers while leveraging our agility to chase demand. Amidst the ongoing macroeconomic pressures affecting consumers, we continue to execute against our strategic initiatives to drive growth and create long-term value.”

The stock is up 29.7% since the results and currently trades at $42.16.

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

Best Q3: 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' earnings and revenue estimates.

Sportsman's Warehouse delivered the biggest analyst estimates beat among its peers. The stock is down 21.2% since the results and currently trades at $4.19.

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

Slowest Q3: 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 $1.40 billion, down 6.4% year on year, falling short of analyst expectations by 3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

The stock is up 24.5% since the results and currently trades at $62.92.

Read our full analysis of Academy Sports's results here.

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 $2.49 billion, up 6.4% year on year, in line with analyst expectations. It was a strong quarter for the company, with same-store sales posting a convincing beat, although revenue only narrowly topped expectations. Profitability was sound, leading to a nice EPS beat. Looking ahead, the company raised its full year outlook for important metrics such as same-store sales, revenue, and EPS.

Ulta scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 13.1% since the results and currently trades at $481.98.

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

Best Buy Co (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 Co reported revenues of $9.76 billion, down 7.8% year on year, falling short of analyst expectations by 1.4%. It was a slower quarter for the company, with a miss of analysts' revenue estimates and full-year revenue guidance missing analysts' expectations.

Best Buy Co had the weakest full-year guidance update among its peers. The stock is up 9.8% since the results and currently trades at $74.75.

Read our full, actionable report on Best Buy Co here, it's free.

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The author has no position in any of the stocks mentioned