Quarterly earnings results are an excellent time to assess a company’s progress, especially when compared to its peers in the same sector. In this article, we will delve into the Q3 earnings of Sally Beauty (NYSE:SBH) and examine how it compares to other specialty retail stocks.
What Are Specialty Retailers?
Some retailers attempt to sell everything under the sun, while others focus on selling a narrow category and strive to excel at it. These stores are known as Specialty Retailers. They win with depth of product in their category as well as in-store expertise and guidance for shoppers who require it.
The Impact Of E-commerce Competition
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. Despite these challenges, some specialty retailers continue to thrive.
Q3 Earnings Summary For The 8 Specialty Retail Stocks We Track
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. Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.
Sally Beauty (NYSE:SBH)
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
- Q3 Revenues: $935 million, up 1.5% year on year
- Analysts’ Expectations: In line with analysts’ expectations
- Beat of Analysts’ EBITDA Estimates: Decent beat
Sally Beauty reported revenues of $935 million, up 1.5% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EBITDA estimates.
"We are pleased to conclude our fiscal year with strong fourth quarter results, reflecting continued momentum across both our Sally Beauty and Beauty Systems Group segments," said Denise Paulonis, president and chief executive officer.
Sally Beauty Total Revenue
Unsurprisingly, the stock is down 15.3% since reporting and currently trades at $10.61. Is now the time to buy Sally Beauty?
Access Our Full Analysis of the Earnings Results Here
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 a retailer that sells outdoor gear and equipment.
- Q3 Revenues: Not disclosed
- Analysts’ Expectations: Not disclosed
- Beat of Analysts’ EBITDA Estimates: Decent beat
Sportsman’s Warehouse reported a decent beat of analysts’ EBITDA estimates. The stock is up 10.2% since reporting and currently trades at $23.45.
Access Our Full, Actionable Report on Sportsman’s Warehouse Here
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.
- Q3 Revenues: $9.45 billion, down 3.2% year on year
- Analysts’ Expectations: 2% below analysts’ expectations
- Beat of Analysts’ EBITDA Estimates: Miss
Best Buy reported a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
The stock is down 9.4% since reporting and currently trades at $84.27.
Access Our Full, Actionable Report on Best Buy Here
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing.
The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over.
The path forward is marked by uncertainty.
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This article provides an overview of Q3 earnings results for Sally Beauty (NYSE:SBH) and other specialty retail stocks. It also discusses the impact of e-commerce competition and waning retail foot traffic on these retailers. Finally, it highlights some market trends and potential investment opportunities.
Investors can use this information to make informed decisions about their investments and stay up-to-date with the latest market news and analysis.
