As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the leisure products industry, including Johnson Outdoors (NASDAQ:JOUT) 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 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.
Johnson Outdoors (NASDAQ:JOUT)
Operating in locations worldwide, Johnson Outdoors (NASDAQ:JOUT) specializes in innovative outdoor recreational products for adventurers worldwide.
Johnson Outdoors reported revenues of $105.9 million, up 9.9% year on year. This print fell short of analysts’ expectations by 7.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
“Challenging marketplace conditions and competitive pressures resulted in lower sales and an operating loss for our 2024 fiscal year. In this challenging environment, we invested in resources against our strategic priorities while working hard to drive operational cost savings,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
Unsurprisingly, the stock is down 4.5% since reporting and currently trades at $33.01.
Read our full report on Johnson Outdoors here, it’s free.
Best Q3: 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 $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with a solid beat of analysts’ EPS and EBITDA estimates.
American Outdoor Brands delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 37.4% since reporting. It currently trades at $14.98.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Clarus (NASDAQ:CLAR)
Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Clarus reported revenues of $67.12 million, down 17.4% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Clarus delivered the weakest full-year guidance update in the group. As expected, the stock is down 7.1% since the results and currently trades at $4.41.
Read our full analysis of Clarus’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 $1.15 billion, down 25.7% year on year. This print surpassed analysts’ expectations by 17.9%. Taking a step back, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but a miss of analysts’ motorcycles sold estimates.
Harley-Davidson achieved the biggest analyst estimates beat among its peers. The stock is down 13.3% since reporting and currently trades at $29.60.
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 $150.5 million, down 6.4% year on year. This number came in 1.1% below analysts' expectations. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 2.6% since reporting and currently trades at $6.74.
Read our full, actionable report on Latham here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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