Let’s dig into the relative performance of Petco (NASDAQ: WOOF) and its peers as we unravel the now-completed Q4 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 Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.1% since the latest earnings results.
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 $1.55 billion, down 7.3% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
"Our results in the fourth quarter demonstrate the progress we've made to return Petco to retail operating excellence," said Joel Anderson, Petco's Chief Executive Officer.
Petco delivered the slowest revenue growth of the whole group. The stock is up 31% since reporting and currently trades at $3.21.
Is now the time to buy Petco? 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 $437.3 million, up 3.9% year on year, outperforming analysts’ expectations by 0.6%. 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 pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $12.63.
Is now the time to buy National Vision? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $175.2 million, flat year on year, exceeding analysts’ expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 66.5% since the results and currently trades at $0.75.
Read our full analysis of Leslie’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 $3.77 billion, up 3.1% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
Tractor Supply had the weakest performance against analyst estimates among its peers. The stock is down 3.1% since reporting and currently trades at $55.23.
Read our full, actionable report on Tractor Supply here, it’s free.
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