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As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty retail industry, including National Vision (NASDAQ:EYE) 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 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 17.3% since the latest earnings results.
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. This print exceeded analysts’ expectations by 0.6%. Overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
“Fiscal 2024 was an important year for National Vision as we took decisive steps to strengthen our foundation and accelerate our transformation,” said Reade Fahs, National Vision's CEO.
National Vision scored the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $11.46.
Is now the time to buy National Vision? Access our full analysis of the earnings results here, it’s free.
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, in line with analysts’ expectations. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 18.4% since reporting. It currently trades at $2.90.