The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure products stocks fared in Q2, starting with Ruger (NYSE: RGR).

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 4.1% on average since the latest earnings results.

Ruger (NYSE: RGR)

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $132.5 million, up 1.3% year on year. This print exceeded analysts’ expectations by 12.4%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 25.1% since reporting and currently trades at $43.47.

Is now the time to buy Ruger? 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 19.8% since reporting. It currently trades at $9.84.

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 estimates and a significant miss of analysts’ 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 16.5% since the results and currently trades at $8.68.

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 missed analysts’ expectations by 3.7%. In spite of that, it was a very strong quarter as it put up full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 8.1% since reporting and currently trades at $33.50.

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

Polaris (NYSE: PII)

Founded in 1954, Polaris (NYSE: PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.88 billion, down 5.6% year on year. This result beat analysts’ expectations by 9.2%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 17.6% since reporting and currently trades at $58.13.

Read our full, actionable report on Polaris 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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