Specialty Retail Stocks: Q3 Earnings Analysis

Overview

Leading specialty retail stocks exhibited mixed performance in Q3, with GameStop (NYSE: GME) and its peers showcasing both successes and challenges. Despite the impact of e-commerce and waning foot traffic, these companies demonstrated resilience in certain areas.

GameStop (GME)

GameStop, a gaming-focused retailer, reported a 20.2% annual revenue decline to $860.3 million. While this missed analyst estimates, the company exceeded EPS expectations. GameStop's stock has remained flat since earnings, currently trading at $26.95.

Sportsman's Warehouse (SPWH)

SPWH, a specialty retailer in outdoor gear and apparel, outperformed estimates with revenue of $324.3 million, exceeding expectations by 7.9%. The stock, however, has dropped 18.4% since reporting, despite strong EPS and EBITDA beats.

Academy Sports (ASO)

ASO, a sporting goods retailer, reported a 3.9% annual revenue decline to $1.34 billion, falling below expectations. The company faced misses in both EBITDA and EPS estimates. Despite this, ASO's stock has gained 11.7%, currently trading at $56.26.

Best Buy (BBY)

BBY, an electronics and home office retailer, reported a 3.2% annual revenue decline to $9.45 billion, missing estimates by 2%. The stock has fallen 8.9% since earnings, with EBITDA and EPS guidance also below expectations.

Ulta (ULTA)

ULTA, a retailer of cosmetics and beauty products, reported a 1.7% annual revenue increase to $2.53 billion, exceeding expectations. The company beat both EBITDA and EPS estimates, leading to a 5.7% stock surge.

Market Outlook

Despite a soft landing economy and disinflation, uncertainty persists in the market due to potential rate cuts, trade policy changes, and corporate tax alterations.

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