Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer discretionary stocks, including Matthews (NASDAQ:MATW) 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 4 consumer discretionary stocks we track reported a solid Q2; on average, revenues missed analyst consensus estimates by 0.6%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and consumer discretionary stocks have had a rough stretch, with share prices down 6.8% on average since the previous earnings results.

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 $471.2 million, flat year on year, falling short of analysts' expectations by 1.6%. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.

The stock is up 2.3% since reporting and currently trades at $27.72.

Is now the time to buy Matthews? Access our full analysis of the earnings results here, it's free.

Best Q2: Carnival (NYSE:CCL)

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Carnival reported revenues of $5.78 billion, up 17.7% year on year, outperforming analysts' expectations by 1.9%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' passenger cruise days estimates.

Carnival achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.9% since reporting. It currently trades at $18.50.

Is now the time to buy Carnival? Access our full analysis of the earnings results here, it's free.

Weakest Q2: Nike (NYSE:NKE)

Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.

Nike reported revenues of $12.61 billion, down 1.7% year on year, falling short of analysts' expectations by 1.9%. It was a mixed quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' constant currency revenue estimates.

Nike had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22.3% since the results and currently trades at $73.17.

Read our full analysis of Nike's results here.

Levi's (NYSE:LEVI)

Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE:LEVI) is an apparel company renowned for its iconic denim products and classic American style.

Levi's reported revenues of $1.44 billion, up 7.8% year on year, in line with analysts' expectations. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.

The stock is down 20.1% since reporting and currently trades at $18.53.

Read our full, actionable report on Levi's here, it's free.

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