Let’s dig into the relative performance of Dick's (NYSE: DKS) and its peers as we unravel the now-completed Q1 specialty retail earnings season.
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 7 specialty retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% below.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
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 $5.16 billion, up 62.7% year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a mixed quarter for the company.
Dick's scored the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise in the group. Still, the market seems discontent with the results. The stock is down 6.7% since reporting and currently trades at $217.55.
Is now the time to buy Dick's? Access our full analysis of the earnings results here, it’s free.
Best Q1: Bath and Body Works (NYSE: BBWI)
Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Bath and Body Works reported revenues of $1.38 billion, down 3.2% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Bath and Body Works scored the highest guidance raise of the whole group. The market seems happy with the results as the stock is up 17.7% since reporting. It currently trades at $20.87.
Is now the time to buy Bath and Body Works? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $903.4 million, up 2.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Sally Beauty delivered the weakest performance against analyst estimates and weakest guidance update among its peers. Interestingly, the stock is up 6.1% since the results and currently trades at $14.89.
Read our full analysis of Sally Beauty’s results here.
Best Buy (NYSE: BBY)
With humble beginnings as a stereo equipment seller, Best Buy (NYSE: BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Best Buy reported revenues of $8.94 billion, up 1.9% year on year. This result topped analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
The stock is up 32.5% since reporting and currently trades at $85.49.
Read our full, actionable report on Best Buy here, it’s free.
Warby Parker (NYSE: WRBY)
Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Warby Parker reported revenues of $242.4 million, up 8.3% year on year. This number surpassed analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
Warby Parker had the weakest full-year guidance update in the group. The stock is up 21.9% since reporting and currently trades at $26.85.
Read our full, actionable report on Warby Parker here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
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.
