Q4 Earnings Review: Specialty Retail Stocks Led by National Vision (NASDAQ:EYE)
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at 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 missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.5% above. While some specialty retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% 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 $503.4 million, up 15.1% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates. National Vision Total Revenue National Vision achieved the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update 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 11% since reporting and currently trades at $23.69. 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 $1.52 billion, down 2.4% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.