Wrapping up Q1 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Harley-Davidson (NYSE: HOG) 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 10 leisure products stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 5.2% below.
Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.
Best Q1: 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 fell short of analysts’ expectations by 1.2%, but it was still an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Harley-Davidson delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 8.6% since reporting and currently trades at $24.31.
Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results 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, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Latham scored the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $5.95.
Is now the time to buy Latham? 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 8.5% since the results and currently trades at $37.19.
Read our full analysis of Ruger’s results here.
MasterCraft (NASDAQ: MCFT)
Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.
MasterCraft reported revenues of $75.96 million, down 9.5% year on year. This result topped analysts’ expectations by 1.4%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EPS estimates but a miss of analysts’ boats sold estimates.
MasterCraft had the weakest full-year guidance update among its peers. The stock is up 14.4% since reporting and currently trades at $18.05.
Read our full, actionable report on MasterCraft here, it’s free.
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 $351.1 million, up 2.9% year on year. This number surpassed analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
The stock is up 15% since reporting and currently trades at $32.16.
Read our full, actionable report on YETI here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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