Let’s dig into the relative performance of Tractor Supply (NASDAQ: TSCO) and its peers as we unravel the now-completed Q1 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 4 specialty retail stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

Luckily, specialty retail stocks have performed well with share prices up 10% on average since the latest earnings results.

Weakest Q1: 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 $3.47 billion, up 2.1% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

Tractor Supply delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.2% since reporting and currently trades at $51.29.

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

Best Q1: 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 $510.3 million, up 5.7% year on year, outperforming analysts’ expectations by 1.5%. The business had a very strong quarter with full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

National Vision pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 60.5% since reporting. It currently trades at $21.40.

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

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 $177.1 million, down 6.1% year on year, falling short of analysts’ expectations by 4%. It was a slower quarter as it posted a miss of analysts’ EBITDA and gross margin estimates.

Leslie's delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2.2% since the results and currently trades at $0.72.

Read our full analysis of Leslie’s results here.

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 $1.49 billion, down 2.3% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 23.8% since reporting and currently trades at $2.78.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.