Q1 Earnings Roundup: Best Buy (NYSE:BBY) And The Rest Of The Specialty Retail Segment
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Best Buy (NYSE:BBY) 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 7 specialty retail stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% below.
Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.
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 $8.94 billion, up 1.9% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
“Today we are pleased to report better-than-expected results for the first quarter,” said Corie Barry, Best Buy CEO.
Best Buy Total Revenue
Interestingly, the stock is up 20.9% since reporting and currently trades at $78.00.
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 $1.38 billion, down 3.2% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Bath and Body Works Total Revenue
Bath and Body Works delivered the highest guidance raise among its peers. The market seems happy with the results as the stock is up 23.7% since reporting. It currently trades at $21.93.
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.
Sally Beauty reported revenues of $903.4 million, up 2.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Sally Beauty delivered the weakest performance against analyst estimates and weakest guidance update in the group. The stock is flat since the results and currently trades at $14.14.
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 $3.16 billion, up 11.1% year on year. This result surpassed analysts’ expectations by 1.5%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.
The stock is down 7.6% since reporting and currently trades at $457.25.
Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Warby Parker reported revenues of $242.4 million, up 8.3% year on year. This print beat analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
Warby Parker had the weakest full-year guidance update among its peers. The stock is up 34.5% since reporting and currently trades at $29.63.
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