The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialty retail stocks fared in Q4, starting with Academy Sports (NASDAQ: ASO).

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 Q4. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.

Academy Sports (NASDAQ: ASO)

Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.

Academy Sports reported revenues of $1.72 billion, up 2.5% year on year. This print fell short of analysts’ expectations by 2.2%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA estimates and full-year revenue guidance missing analysts’ expectations.

"This past year marked an inflection point for Academy as we continued to gain market share and moved back to topline growth. During 2025, we put in place many foundational building blocks that helped drive sales and will continue to pay dividends in 2026 and beyond," said Steve Lawrence, Chief Executive Officer.

Academy Sports delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 2.9% since reporting and currently trades at $58.17.

Read our full report on Academy Sports here, it’s free.

Best Q4: 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 $2.72 billion, down 2.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Bath and Body Works scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.6% since reporting. It currently trades at $18.25.

Is now the time to buy Bath and Body Works? Access our full analysis of the earnings results 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 $212 million, up 11.2% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Warby Parker delivered the weakest full-year guidance update in the group. As expected, the stock is down 3.3% since the results and currently trades at $21.05.

Read our full analysis of Warby Parker’s results here.

Ulta (NASDAQ: ULTA)

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Ulta reported revenues of $3.90 billion, up 11.8% year on year. This number topped analysts’ expectations by 1.9%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ gross margin estimates but full-year EPS guidance slightly missing analysts’ expectations.

The stock is down 13.2% since reporting and currently trades at $542.18.

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

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 $6.23 billion, up 59.9% year on year. This result beat analysts’ expectations by 2.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

Dick's achieved the fastest revenue growth among its peers. The stock is up 1.8% since reporting and currently trades at $199.08.

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

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.