The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how specialty retail stocks fared in Q2, starting with Sportsman's Warehouse (NASDAQ: SPWH).

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 Q2. As a group, revenues were in line with analysts’ consensus estimates.

While some specialty retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.4% since the latest earnings results.

Best Q2: 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 $295.6 million, flat year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

“I was pleased with our second quarter performance, despite a challenging consumer environment. While our customers continue to be selective with discretionary spending, we are encouraged by the progress we are making to strengthen Sportsman’s Warehouse and position the business for long-term profitable growth,” said Paul Stone, President and Chief Executive Officer of Sportsman’s Warehouse. “Our teams have moved with urgency to improve our value proposition, strengthen in-stocks, sharpen our assortment and localization, and deliver a better experience across our stores and digital channels, helping drive nearly 7% growth in our Hunting and Shooting Sports department during the quarter.”

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $1.20.

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

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 $9.78 billion, up 3.6% year on year, outperforming analysts’ expectations by 2.1%. The business had a strong quarter with full-year EPS guidance beating analysts’ expectations and full-year revenue guidance slightly topping analysts’ expectations.

Best Buy delivered the biggest analyst estimate beat and highest full-year guidance raise of the whole group. The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $90.67.

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

Weakest Q2: 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 $5.59 billion, up 53.2% year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and full-year revenue guidance slightly missing analysts’ expectations.

Dick's delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 24.7% since the results and currently trades at $135.07.

Read our full analysis of Dick’s results here.

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 $935.5 million, flat year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.

The stock is up 6.4% since reporting and currently trades at $15.93.

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

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 $1.51 billion, down 2.3% year on year. This result beat analysts’ expectations by 1.2%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

Bath and Body Works had the slowest revenue growth among its peers. The stock is up 4.8% since reporting and currently trades at $18.43.

Read our full, actionable report on Bath and Body Works 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.