The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Petco (NASDAQ:WOOF) and the rest of the specialty retail stocks fared in Q4.

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; on average, revenues beat analyst consensus estimates by 1.5%, while next quarter's revenue guidance was 3.3% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and specialty retail stocks have had a rough stretch, with share prices down 16.7% on average since the previous earnings results.

Weakest Q4: 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 $1.67 billion, up 6.1% year on year, topping analyst expectations by 2.6%. It was a weak quarter for the company, with underwhelming earnings guidance for the next quarter and revenue guidance for next quarter missing analysts' expectations.

Petco achieved the biggest analyst estimates beat of the whole group. The stock is down 35.9% since the results and currently trades at $1.64.

Read our full report on Petco here, it's free.

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 $506.4 million, up 8% year on year, outperforming analyst expectations by 1.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and optimistic earnings guidance for the full year.

National Vision delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 5.7% since the results and currently trades at $18.8.

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

Tractor Supply (NASDAQ:TSCO)

Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.

Tractor Supply reported revenues of $3.66 billion, down 8.6% year on year, falling short of analyst expectations by 0.5%. It was a mixed quarter for the company, with a decent beat of analysts' gross margin estimates. On the other hand, its revenue slightly missed estimates as its sales volumes fell 2.7% and prices fell 1.5%. 

Tractor Supply had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 10.3% since the results and currently trades at $247.86.

Read our full analysis of Tractor Supply's results here.

Leslie's (NASDAQ:LESL)

Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.

Leslie's reported revenues of $174 million, down 10.8% year on year, surpassing analyst expectations by 2.6%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates but a miss of analysts' gross margin estimates.

Leslie's had the slowest revenue growth among its peers. The stock is down 35.6% since the results and currently trades at $4.4.

Read our full, actionable report on Leslie's here, it's free.

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