Wrapping up Q2 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Solo Brands (NYSE:DTC) 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 16 leisure products stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, leisure products stocks have been resilient with share prices up 7.4% on average since the latest earnings results.
Solo Brands (NYSE:DTC)
Started through a Kickstarter campaign, Solo Brands (NYSE:DTC) is a provider of outdoor and recreational products.
Solo Brands reported revenues of $131.6 million, flat year on year. This print exceeded analysts’ expectations by 2.4%. Despite the top-line beat, it was still a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
Unsurprisingly, the stock is down 21.5% since reporting and currently trades at $1.57.
Read our full report on Solo Brands here, it’s free.
Best 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $8.49.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Polaris (NYSE:PII)
Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.96 billion, down 12.3% year on year, falling short of analysts’ expectations by 9.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 3.1% since the results and currently trades at $84.63.
Read our full analysis of Polaris’s results here.
Vista Outdoor (NYSE:VSTO)
Emerging from a 2015 spin-off, Vista Outdoor (NYSE:VSTO) specializes in the production and sale of outdoor gear and shooting sports equipment.
Vista Outdoor reported revenues of $644.2 million, down 7.1% year on year. This print met analysts’ expectations. More broadly, it was a softer quarter as it also recorded a narrow beat of analysts’ earnings estimates. In addition, full-year revenue guidance missed analysts’ expectations.
The stock is up 4.6% since reporting and currently trades at $40.15.
Read our full, actionable report on Vista Outdoor 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 $158.7 million, down 57.4% year on year. This print beat analysts’ expectations by 1.1%. Aside from that, it was a softer quarter as it logged a miss of analysts’ earnings estimates estimates.
The stock is up 12.5% since reporting and currently trades at $39.29.
Read our full, actionable report on Malibu Boats here, it’s free.
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