Looking back on specialty retail stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Dick's (NYSE:DKS) 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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.9% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q2: Dick's (NYSE:DKS)

Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Dick's reported revenues of $3.47 billion, up 7.8% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA and gross margin estimates.

Dick's scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.7% since reporting and currently trades at $202.69.

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

GameStop (NYSE:GME)

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

GameStop reported revenues of $798.3 million, down 31.4% year on year, falling short of analysts’ expectations by 10.9%. However, the business still had a decent quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.

The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $26.70.

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

Slowest Q2: 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 $288.7 million, down 6.7% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 9% since the results and currently trades at $2.29.

Read our full analysis of Sportsman's Warehouse’s results here.

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.

Sally Beauty reported revenues of $935 million, up 1.5% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The stock is up 7.1% since reporting and currently trades at $13.41.

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

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 $1.55 billion, down 2.2% year on year. This print came in 1.8% below analysts' expectations. It was a slower quarter as it also produced full-year EPS and revenue guidance missing analysts’ expectations.

The stock is down 9.1% since reporting and currently trades at $47.86.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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