Q2 Earnings Highlights: GameStop (NYSE:GME) Vs The Rest Of The Specialty Retail Stocks

Anthony Lee /
2023/09/12 5:24 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the specialty retail stocks, starting with GameStop (NYSE:GME).

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 mixed Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 15.5% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and while some of the specialty retail stocks have fared somewhat better than others, they have not been spared, with share prices declining 7.38% since the previous earnings results, on average.

GameStop (NYSE:GME)

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

GameStop reported revenues of $1.16 billion, up 2.45% year on year, beating analyst expectations by 1.97%. It was a decent quarter for the company, with revenue and EPS exceeding Wall Street's expectations.

GameStop Total Revenue

GameStop scored the strongest analyst estimates beat of the whole group. The stock is down 6.77% since the results and currently trades at $17.5.

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 $1.56 billion, down 3.65% year on year, in line with analyst expectations. It was a decent quarter for the company, with EPS coming in ahead of expectations and next quarter's earnings guidance also exceeding Wall Street's estimates.

Bath and Body Works Total Revenue

The stock is up 4.12% since the results and currently trades at $36.4.

Is now the time to buy Bath and Body Works? Access our full analysis of the earnings results here, it's free.

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 $309.5 million, down 11.8% year on year, missing analyst expectations by 5.06%. It was a weak quarter for the company, with revenue and EPS coming in below Wall Street's estimates. Its full-year revenue guidance also came in significantly below analysts' expectations.

Sportsman's Warehouse had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 26.3% since the results and currently trades at $3.33.

Read our full analysis of Sportsman's Warehouse's results here.

Best Buy Co (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 Co reported revenues of $9.58 billion, down 7.22% year on year, in line with analyst expectations. It was a mixed quarter for the company, with full year same-store sales and revenue guidance lowered from the company's previous outlook. However, Best Buy's profitability outlook is better, resulting in a higher full year operating margin guidance compared to previous.

Best Buy Co had the weakest full year guidance update among the peers. The stock is down 2.02% since the results and currently trades at $72.58.

Read our full, actionable report on Best Buy Co here, it's free.

The author has no position in any of the stocks mentioned