Wrapping up Q1 earnings, we look at the numbers and key takeaways for the specialty retail stocks, including GameStop (NYSE: GME) 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 satisfactory Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 8.5% on average since the latest earnings results.

GameStop (NYSE: GME)

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

GameStop reported revenues of $732.4 million, down 16.9% year on year. This print fell short of analysts’ expectations by 2.9%, but it was still a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.

GameStop delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 21.1% since reporting and currently trades at $23.81.

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

Best Q1: 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 $249.1 million, up 2% year on year, outperforming analysts’ expectations by 4.6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Sportsman's Warehouse pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 40.6% since reporting. It currently trades at $3.29.

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

Weakest Q1: 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 $1.35 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Interestingly, the stock is up 3.6% since the results and currently trades at $46.

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

Best Buy (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 reported revenues of $8.77 billion, flat year on year. This print was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.

Best Buy delivered the highest full-year guidance raise among its peers. The stock is down 4.4% since reporting and currently trades at $68.43.

Read our full, actionable report on Best Buy 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 $2.85 billion, up 4.5% year on year. This number topped analysts’ expectations by 1.9%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

The stock is up 8.1% since reporting and currently trades at $456.01.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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