Winners And Losers Of Q2: Johnson Outdoors (NASDAQ:JOUT) Vs The Rest Of The Leisure Products Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at leisure products stocks, starting with Johnson Outdoors (NASDAQ:JOUT).
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 slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, leisure products stocks have held steady amidst all this with share prices up 2.1% on average 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 $172.5 million, down 7.8% year on year. This print fell short of analysts’ expectations by 2.1%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.
“Challenging marketplace conditions, primarily due to lower consumer demand for outdoor recreation products and heavy promotional activity, have impacted our performance. As a result, we are evaluating all aspects of the business to improve our financial results and are working to redeploy resources to enable growth for the future.” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
Unsurprisingly, the stock is down 13.1% since reporting and currently trades at $35.48.
Read our full report on Johnson Outdoors here, it’s free.
Best 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat 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 6.8% since reporting. It currently trades at $8.56.
Is now the time to buy American Outdoor Brands? 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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 5.1% since the results and currently trades at $77.95.
Read our full analysis of Polaris’s results here.
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. This number lagged analysts' expectations by 13.8%. Overall, it was a disappointing quarter as it also logged a miss of analysts’ earnings estimates.
Smith & Wesson had the weakest performance against analyst estimates among its peers. The stock is down 9.4% since reporting and currently trades at $12.87.
Read our full, actionable report on Smith & Wesson here, it’s free.
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. This print lagged analysts' expectations by 5%. All in all, it was a disappointing quarter for the company.
The stock is down 9.2% since reporting and currently trades at $40.97.
Read our full, actionable report on Ruger here, it’s free.
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