With Q4 earnings behind us, let's assess the key takeaways from the quarter for specialty retail stocks, including Leslie's (NASDAQ:LESL) 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 4 specialty retail stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was 3.3% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the specialty retail stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.9% on average since the previous earnings results.

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 $174 million, down 10.8% year on year, topping analyst expectations by 2.6%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates but a miss of analysts' gross margin estimates.

Mike Egeck, Chief Executive Officer, said, “Our first quarter results were in line with or ahead of our expectations and topline performance showed sequential improvement each month throughout the quarter, supported by more normalized weather. While we continue to work through the impact of the pricing actions we took in June 2023, we are enhancing our marketing and merchandising tactics to more effectively highlight our value proposition as we position the Company ahead of the peak pool season. Our team is energized and focused on executing the strategic initiatives that underpin our competitive advantages to drive growth, long term market share gains, and shareholder value.”

Leslie's delivered the slowest revenue growth of the whole group. The stock is down 17.7% since the results and currently trades at $5.62.

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

Best Q4: 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 $506.4 million, up 8% year on year, outperforming analyst expectations by 1.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and optimistic earnings guidance for the full year.

National Vision pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 2.1% since the results and currently trades at $20.35.

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

Weakest Q4: 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 $1.67 billion, up 6.1% year on year, exceeding analyst expectations by 2.6%. It was a weak quarter for the company, with revenue and earnings guidance for the next quarter missing analysts' expectations.

Petco scored the biggest analyst estimates beat in the group. The stock is down 23.8% since the results and currently trades at $1.95.

Read our full analysis of Petco's results here.

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 $3.66 billion, down 8.6% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Tractor Supply had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 12% since the results and currently trades at $251.65.

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

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.