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 Clarus (NASDAQ: CLAR).

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.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

Clarus (NASDAQ: CLAR)

Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $55.25 million, down 2.2% year on year. This print exceeded analysts’ expectations by 3.5%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

“Despite continued headwinds across the global outdoor market, we remain focused on operational execution and disciplined investment aligned with our strategic roadmap,” said Warren Kanders, Clarus’ Executive Chairman.

Interestingly, the stock is up 9.5% since reporting and currently trades at $3.93.

Read our full report on Clarus 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 8% since reporting. It currently trades at $8.87.

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 19.5% since the results and currently trades at $8.36.

Read our full analysis of American Outdoor Brands’s results here.

Malibu Boats (NASDAQ: MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ: MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $207 million, up 30.4% year on year. This number beat analysts’ expectations by 5.4%. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

The stock is down 16.5% since reporting and currently trades at $33.04.

Read our full, actionable report on Malibu Boats 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 print topped analysts’ expectations by 9.2%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 20.3% since reporting and currently trades at $59.50.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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