Looking back on leisure products stocks’ Q1 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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 5.1% below.
Luckily, leisure products stocks have performed well with share prices up 11% 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 $1.22 billion, down 10.5% year on year. This print exceeded analysts’ expectations by 7.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations significantly.
Interestingly, the stock is up 31.4% since reporting and currently trades at $59.44.
Read our full report on Brunswick here, it’s free.
Best Q1: 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 $61.94 million, up 33.8% year on year, outperforming analysts’ expectations by 27.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
American Outdoor Brands delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.3% since reporting. It currently trades at $10.09.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Ruger (NYSE: RGR)
Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $135.7 million, flat year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.2% since the results and currently trades at $36.52.
Read our full analysis of Ruger’s results here.
Harley-Davidson (NYSE: HOG)
Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.
Harley-Davidson reported revenues of $1.33 billion, down 23.1% year on year. This print came in 1.2% below analysts' expectations. In spite of that, it was a very strong quarter as it produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Harley-Davidson had the slowest revenue growth among its peers. The stock is up 14% since reporting and currently trades at $25.53.
Read our full, actionable report on Harley-Davidson 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 $111.4 million, flat year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Latham pulled off the highest full-year guidance raise among its peers. The stock is up 14% since reporting and currently trades at $6.81.
Read our full, actionable report on Latham here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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