Wrapping up Q2 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 16 leisure products stocks we track reported a weak Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, leisure products stocks have held steady amidst all this with share prices up 1.3% on average since the latest earnings results.
Best Q2: 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 $463.5 million, up 15.1% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a solid quarter for the company with a decent beat of analysts’ earnings estimates.
Matt Reintjes, President and Chief Executive Officer, commented, “YETI delivered another great quarter, highlighted by our Coolers & Equipment category and continued growth of our business outside the United States.”
YETI achieved the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $37.31.
Is now the time to buy YETI? Access our full analysis of the earnings results here, it’s free.
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 $88.33 million, down 22.7% year on year, falling short of analysts’ expectations by 13.8%. It performed better than its peers, but it was unfortunately a weak quarter for the company with a miss 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 8.5% since reporting. It currently trades at $13.
Is now the time to buy Smith & Wesson? 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 weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 3.4% since the results and currently trades at $79.32.
Read our full analysis of Polaris’s results here.
Ruger (NYSE:RGR)
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $130.8 million, down 8.4% year on year, falling short of analysts’ expectations by 5%. Overall, it was a weak quarter for the company with some shareholders hoping for a better result.
The stock is down 8.5% since reporting and currently trades at $41.30.
Read our full, actionable report on Ruger here, it’s free.
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, surpassing analysts’ expectations by 2.4%. Zooming out, it was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
The stock is down 28% since reporting and currently trades at $1.44.
Read our full, actionable report on Solo Brands here, it’s free.
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