Let’s dig into the relative performance of LKQ (NASDAQ: LKQ) and its peers as we unravel the now-completed Q4 consumer discretionary - specialized consumer services earnings season.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 11 consumer discretionary - specialized consumer services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.3% since the latest earnings results.

LKQ (NASDAQ: LKQ)

A global distributor of vehicle parts and accessories, LKQ (NASDAQ: LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.

LKQ reported revenues of $3.31 billion, flat year on year. This print exceeded analysts’ expectations by 3.5%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and full-year EPS guidance missing analysts’ expectations.

“Operational excellence remains our core focus as our teams continue to drive simplification and productivity in an uncertain demand environment. Our 2026 guidance reflects current market conditions and assumes gradual improvement as the year progresses. The strength of our operating model and culture continues to support solid free cash flow generation, and together with our strong balance sheet, positions the Company to execute on its long-term strategy and further strengthen its financial profile,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.

Unsurprisingly, the stock is down 13% since reporting and currently trades at $28.91.

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

Best Q4: 1-800-FLOWERS (NASDAQ: FLWS)

Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $702.2 million, down 9.5% year on year, in line with analysts’ expectations. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.8% since reporting. It currently trades at $3.36.

Is now the time to buy 1-800-FLOWERS? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Pool (NASDAQ: POOL)

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $982.2 million, flat year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

Pool delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 18.2% since the results and currently trades at $208.83.

Read our full analysis of Pool’s results here.

ADT (NYSE: ADT)

Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

ADT reported revenues of $1.28 billion, up 1.3% year on year. This number lagged analysts' expectations by 1.2%. Aside from that, it was a mixed quarter as it also logged EPS in line with analysts’ estimates but a slight miss of analysts’ revenue estimates.

The stock is down 18% since reporting and currently trades at $6.58.

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

Matthews (NASDAQ: MATW)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $284.8 million, down 29.1% year on year. This print beat analysts’ expectations by 0.8%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

Matthews had the slowest revenue growth among its peers. The stock is down 6.8% since reporting and currently trades at $24.63.

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

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