Specialty Retail Stocks Q4 Earnings: National Vision (NASDAQ:EYE) Firing on All Cylinders

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty retail industry, including 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 along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.3% 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 $437.3 million, up 3.9% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

“Fiscal 2024 was an important year for National Vision as we took decisive steps to strengthen our foundation and accelerate our transformation,” said Reade Fahs, National Vision's CEO.National Vision Total Revenue

National Vision scored the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $11.46.

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 $1.55 billion, down 7.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.Petco Total Revenue

The market seems happy with the results as the stock is up 18.4% since reporting. It currently trades at $2.90.

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

Weakest Q4: 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 $175.2 million, flat year on year, exceeding analysts’ expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 74.2% since the results and currently trades at $0.58.

Read our full analysis of Leslie’s results here.

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 $3.77 billion, up 3.1% year on year. This print was in line with analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations and a miss of analysts’ EBITDA estimates.

Tractor Supply had the weakest performance against analyst estimates among its peers. The stock is down 13.3% since reporting and currently trades at $49.41.

Read our full, actionable report on Tractor Supply here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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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