
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Leslie's (NASDAQ: LESL) and the rest of the specialty retail stocks fared in Q3.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.4% since the latest earnings results.
Weakest Q3: 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 $389.2 million, down 2.2% year on year. This print exceeded analysts’ expectations by 4.2%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
“We delivered fourth quarter sales and adjusted EBITDA above the high end of our previously established guidance range and are today announcing the closure of 80-90 underperforming stores and one distribution center as we work with speed and urgency to improve Leslie's operations and establish a clear path to financial recovery,” said Jason McDonell, Chief Executive Officer of Leslie’s.

Leslie's achieved the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. Still, the market seems discontent with the results. The stock is down 1.3% since reporting and currently trades at $1.71.
Read our full report on Leslie's here, it’s free.
Best Q3: 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 $1.46 billion, down 3.1% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.3% since reporting. It currently trades at $2.93.
Is now the time to buy Petco? Access our full analysis of the earnings results here, it’s free.
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 $3.72 billion, up 7.2% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted EPS in line with analysts’ estimates but a slight miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 1.1% since the results and currently trades at $55.43.
Read our full analysis of Tractor Supply’s results here.
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 $487.3 million, up 7.9% year on year. This result topped analysts’ expectations by 3%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ revenue estimates but full-year EPS guidance missing analysts’ expectations.
National Vision scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 3.1% since reporting and currently trades at $26.40.
Read our full, actionable report on National Vision here, it’s free.
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