Q3 Rundown: Best Buy Co (NYSE:BBY) Vs Other Specialty Retail Stocks

Let's dig into the relative performance of Best Buy Co (NYSE:BBY) and its peers as we unravel the now-completed Q3 specialty retail earnings season.

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. 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 the share prices up 16.9% on average since the previous earnings results.

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 full-year revenue guidance missing analysts' expectations.

Best Buy Co delivered the weakest full-year guidance update of the whole group. The stock is up 9.9% since the results and currently trades at $74.82.

Read our full report on Best Buy Co 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 scored the biggest analyst estimates beat among its peers. The stock is down 22.9% since the results and currently trades at $4.1.

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

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 27.4% since the results and currently trades at $64.38.

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

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 $921.4 million, down 4.3% year on year, falling short of analyst expectations by 1.1%. It was a slower quarter for the company, with a miss of analysts' earnings and revenue estimates.

The stock is up 59.3% since the results and currently trades at $12.95.

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

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 pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 15.8% since the results and currently trades at $493.59.

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

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The author has no position in any of the stocks mentioned