Q2 Earnings Outperformers: Sportsman's Warehouse (NASDAQ:SPWH) And The Rest Of The Specialty Retail Stocks

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Q2 Earnings Outperformers: Sportsman's Warehouse (NASDAQ:SPWH) And The Rest Of The Specialty Retail Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Sportsman's Warehouse (NASDAQ:SPWH) 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.

While some specialty retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.

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. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.

“We continued to make substantial progress on our initiatives to reset the business and improve our overall operations; however, we were disappointed that sales and margins came in below our expectations,” said Paul Stone, Chief Executive Officer and President.

Sportsman's Warehouse Total Revenue
Sportsman's Warehouse Total Revenue

Sportsman's Warehouse pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 10.5% since reporting and currently trades at $2.32.

Read our full report on Sportsman's Warehouse here, it’s free.

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, outperforming analysts’ expectations by 1.1%. The business had a strong quarter with a solid beat of analysts’ EBITDA and gross margin estimates.

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