As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary industry, including Apple (NASDAQ: AAPL) and its peers.
This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.
The 136 consumer discretionary stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% 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 8% since the latest earnings results.
Apple (NASDAQ: AAPL)
Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.
Apple reported revenues of $109.4 billion, up 16.4% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $332.
We think Apple is a good business, but is it a buy today? Read our full report 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 $112.6 million, up 32.3% year on year, outperforming analysts’ expectations by 14.1%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $13.13.
Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $246 million, down 29.6% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 27.3% since the results and currently trades at $20.10.
Read our full analysis of Matthews’s results here.
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 $293.1 million, down 12.9% year on year. This number met analysts’ expectations. Zooming out, it was a softer quarter as it produced full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
The stock is down 12.2% since reporting and currently trades at $3.07.
Read our full, actionable report on 1-800-FLOWERS here, it’s free.
Movado (NYSE: MOV)
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Movado reported revenues of $169.8 million, up 4.9% year on year. This print beat analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates.
The stock is down 6.1% since reporting and currently trades at $32.84.
Read our full, actionable report on Movado here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
