Reflecting On Specialty Retail Stocks’ Q1 Earnings: Leslie's (NASDAQ:LESL)

July 21, 2025 at 23:34 PM EDT

LESL Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Leslie's (NASDAQ: LESL) and the best and worst performers in the specialty retail industry.

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 14.1% on average since the latest 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 $177.1 million, down 6.1% year on year. This print fell short of analysts’ expectations by 4%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.

“I am proud of our team’s dedication, resiliency and customer first mindset as we move forward in our transformation journey. Our team remains focused on the fundamentals of our business to deliver progress against our strategic initiatives,” said Jason McDonell, Leslie’s chief executive officer.

Leslie's delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 40.3% since reporting and currently trades at $0.42.

Read our full report on Leslie's 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 an impressive beat of analysts’ EBITDA estimates.

National Vision delivered 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 93.2% since reporting. It currently trades at $25.75.

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

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, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Tractor Supply delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 14.5% since the results and currently trades at $58.

Read our full analysis of Tractor Supply’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. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 11% since reporting and currently trades at $3.25.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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

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