Looking back on leisure products stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Brunswick (NYSE: BC) 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 3.3% on average since the latest earnings results.
Brunswick (NYSE: BC)
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Brunswick reported revenues of $1.45 billion, flat year on year. This print exceeded analysts’ expectations by 16.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year revenue guidance beating analysts’ expectations.
Brunswick pulled off the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2% since reporting and currently trades at $63.35.
Is now the time to buy Brunswick? 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 and EBITDA estimates.
The market seems happy with the results as the stock is up 14.3% since reporting. It currently trades at $9.39.
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 13.9% since the results and currently trades at $8.95.
Read our full analysis of American Outdoor Brands’s results here.
YETI (NYSE: YETI)
Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
YETI reported revenues of $445.9 million, down 3.8% year on year. This print came in 3.7% below analysts' expectations. Zooming out, it was actually a very strong quarter as it produced full-year EPS guidance exceeding analysts’ expectations.
The stock is down 5.1% since reporting and currently trades at $34.59.
Read our full, actionable report on YETI here, it’s free.
Clarus (NASDAQ: CLAR)
Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Clarus reported revenues of $55.25 million, down 2.2% year on year. This number beat analysts’ expectations by 3.5%. More broadly, it was a softer quarter as it logged a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
The stock is up 3.1% since reporting and currently trades at $3.70.
Read our full, actionable report on Clarus here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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