Looking back on leisure products stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Polaris (NYSE: PII) and its peers.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 12 leisure products stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was 0.7% below.

In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.

Polaris (NYSE: PII)

Founded in 1954, Polaris (NYSE: PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.88 billion, down 5.6% year on year. This print exceeded analysts’ expectations by 9.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Interestingly, the stock is up 17.3% since reporting and currently trades at $58.

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

Best Q2: Smith & Wesson (NASDAQ: SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $85.08 million, down 3.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $9.50.

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

Weakest Q2: American Outdoor Brands (NASDAQ: AOUT)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $29.7 million, down 28.7% year on year, falling short of analysts’ expectations by 17%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

American Outdoor Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 13.4% since the results and currently trades at $9.

Read our full analysis of American Outdoor Brands’s results here.

Acushnet (NYSE: GOLF)

Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE: GOLF) is a design and manufacturing company specializing in performance-driven golf products.

Acushnet reported revenues of $720.5 million, up 5.4% year on year. This number beat analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA.

The stock is down 5.7% since reporting and currently trades at $75.16.

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

Latham (NASDAQ: SWIM)

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $172.6 million, up 7.8% year on year. This print lagged analysts' expectations by 1.4%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

The stock is up 11% since reporting and currently trades at $7.59.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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