Wrapping up Q3 earnings, we look at the numbers and key takeaways for the leisure products stocks, including YETI (NYSE: YETI) 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 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5% since the latest earnings results.

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 $478.4 million, up 10.4% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.

Matt Reintjes, President and Chief Executive Officer, commented, “Our positive momentum continued in the third quarter, with strong performance across our product portfolio and robust growth in our international business.”

YETI pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 6.6% since reporting and currently trades at $38.51.

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

Best Q3: 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 firearms and firearm accessories.

American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

American Outdoor Brands scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 37.3% since reporting. It currently trades at $14.97.

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

Weakest Q3: Clarus (NASDAQ: CLAR)

Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $67.12 million, down 17.4% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Clarus delivered the weakest full-year guidance update in the group. As expected, the stock is down 7.4% since the results and currently trades at $4.40.

Read our full analysis of Clarus’s results here.

Johnson Outdoors (NASDAQ: JOUT)

Operating in locations worldwide, Johnson Outdoors (NASDAQ: JOUT) specializes in innovative outdoor recreational products for adventurers worldwide.

Johnson Outdoors reported revenues of $105.9 million, up 9.9% year on year. This result came in 7.9% below analysts' expectations. It was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.

The stock is down 4.6% since reporting and currently trades at $33.

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

Malibu Boats (NASDAQ: MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ: MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $171.6 million, down 32.9% year on year. This number surpassed analysts’ expectations by 2.6%. Overall, it was a stunning quarter as it also produced a solid beat of analysts’ EPS and EBITDA estimates.

Malibu Boats had the slowest revenue growth among its peers. The stock is down 11% since reporting and currently trades at $37.59.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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.

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