Wrapping up Q3 earnings, we look at the numbers and key takeaways for the specialty retail stocks, including Academy Sports (NASDAQ:ASO) 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 8 specialty retail stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Slowest Q3: 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 $1.34 billion, down 3.9% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

"We delivered third quarter sales in line with expectations and were encouraged to see an improvement in comp sales trends versus the first half of the year,” said Steve Lawrence, Chief Executive Officer.

Academy Sports delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 10.1% since reporting and currently trades at $55.44.

Read our full report on Academy Sports here, it’s free.

Best Q3: 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 $324.3 million, down 4.8% year on year, outperforming analysts’ expectations by 7.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Sportsman's Warehouse pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.1% since reporting. It currently trades at $2.35.

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

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 $9.45 billion, down 3.2% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 8.9% since the results and currently trades at $84.70.

Read our full analysis of Best Buy’s results here.

Bath and Body Works (NYSE:BBWI)

Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.

Bath and Body Works reported revenues of $1.61 billion, up 3.1% year on year. This number topped analysts’ expectations by 1.9%. It was a strong quarter as it also produced EPS guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.

Bath and Body Works delivered the fastest revenue growth among its peers. The stock is up 24.3% since reporting and currently trades at $38.20.

Read our full, actionable report on Bath and Body Works 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 $2.53 billion, up 1.7% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA and EPS estimates.

The stock is up 8% since reporting and currently trades at $424.13.

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

Market Update

In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 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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