What drove Consumer Discretionary this quarter
S&P 500 · Consumer Discretionary sector · updated August 10, 2026 · rolling 90-day window
The Consumer Discretionary sector exhibited a mixed performance in the latest quarter, driven by divergent demand trends, pricing pressures, and cautious guidance from several key players. A notable theme was the resilience in certain segments, particularly in dining and travel, as evidenced by Darden Restaurants' 13.7% year-over-year sales growth and Carnival Corporation's record revenues, both benefiting from strong consumer demand despite macroeconomic headwinds. However, companies like NIKE and lululemon faced significant challenges, reflecting a broader trend of cautious consumer spending in discretionary categories, especially in sportswear and apparel. Pricing pressures were evident, with rising costs impacting margins across the sector; for instance, Deckers Outdoor projected a decline in gross margins due to tariffs and inflation. Furthermore, guidance across the sector was notably cautious, with NIKE anticipating a revenue decline in fiscal 2027 and Lennar adjusting its home delivery expectations due to elevated interest rates. Notably, while 76% of companies beat expectations, those like Chipotle and The Home Depot struggled to meet their targets, highlighting the challenges of navigating a complex macro environment. Overall, the sector's performance underscores a bifurcated landscape where some companies thrive amid strong demand, while others grapple with economic pressures and shifting consumer preferences.
Consumer Discretionary companies this quarter
The individual earnings calls behind this synthesis. Each links to the company's full transcript archive — free to read.
In the fourth quarter of fiscal 2026, NIKE, Inc. reported a revenue decline of 1% year-over-year, with earnings per share (EPS) of $0.72, which was in line with expectations. The company highlighted challenges in the macro environment affec…
Darden Restaurants, Inc. reported a strong fourth quarter for fiscal year 2026, with total sales reaching $3.7 billion, a 13.7% increase year-over-year. Adjusted diluted EPS rose 22.8% to $3.66, benefiting from an extra fiscal week. Managem…
In Q2 2026, Carnival Corporation reported record revenues and net income, driven by strong demand and cost management, despite geopolitical challenges. Revenue reached $5.2 billion, and net income was $569 million, exceeding guidance by $10…
In the Q2 2026 earnings call, Lowe's Companies, Inc. (LOW:US) reported a revenue of $23.5 billion, slightly below the consensus estimate of $24.0 billion, reflecting a 2% year-over-year decline. Earnings per share (EPS) came in at $1.85, be…
In the Q1 2026 earnings call for Yum! Brands, Inc., management highlighted a strong performance driven by KFC's strategic initiatives, particularly in the U.K. where same-store sales increased by 7%. The company reported revenue of $3.2 bil…
In the second quarter of fiscal year 2026, Lennar Corporation (LEN:US) reported revenue of $7.3 billion and earnings per share (EPS) of $1.31, excluding mark-to-market items. The company delivered 20,519 homes and generated 21,749 new order…
In the 2026 Annual Meeting of Shareholders held on June 11, Hasbro, Inc. reported a strong performance, with management highlighting a return to growth and record profitability in 2025. The company emphasized its strategic focus on franchis…
In the second quarter of 2026, Aptiv PLC reported revenues of $3.2 billion, reflecting a 6% increase year-over-year, and earnings per share (EPS) of $0.75, which was in line with expectations. Management maintained its guidance for the full…
In the fiscal second quarter of 2026, Starbucks Corporation (SBUX:US) reported a notable turnaround with U.S. transactions growing across all income cohorts, leading to a 7% increase in comparable store sales. Revenue reached $9.5 billion,
In the 2026 Annual General Meeting held on June 5, Garmin Ltd. reported a record revenue of $7.25 billion for 2025, reflecting a 15% increase year-over-year, with operating income rising 18% to $1.88 billion. The company signaled strong dou…
In the first quarter of fiscal year 2026, lululemon athletica inc. reported total net revenue of $2.5 billion, reflecting a 4% increase year-over-year, but comparable sales decreased by 2%. The company faced challenges in North America, wit…
In the fiscal quarter ending June 4, 2026, Ulta Beauty, Inc. reported strong financial performance, with revenue growth of 6% to 7% year-over-year, driven by effective execution and strategic investments. The company achieved an EPS of $2.1…
In the Q2 2026 earnings call, Ford Motor Company reported a revenue of $40 billion, which was in line with expectations, and an earnings per share (EPS) of $1.20, beating estimates by $0.05. Management provided a cautious outlook for the se…
In the first quarter of fiscal 2026, Ulta Beauty, Inc. reported net sales of $3.2 billion, reflecting an 11.1% increase year-over-year, and diluted EPS of $7.74, up 15.5%. The company maintained its full-year sales growth guidance of 6% to
In the Q2 2026 earnings call for Expedia Group, Inc. (EXPE:US), management reported a revenue of $2.5 billion, which was above the consensus estimate of $2.4 billion, reflecting a year-over-year growth of 12%. Earnings per share (EPS) came
In the Q2 2026 earnings call, eBay Inc. reported a strong performance, raising its guidance for both GMV and operating income for the fiscal year. Revenue for the quarter was $3.1 billion, with an operating income growth forecast of 9% to 1…
In the Q2 2026 earnings call, Tractor Supply Company (TSCO:US) reported a challenging operating environment, with management acknowledging that their performance has not met expectations due to softness in key markets. Revenue for the quart…
In the Q2 2026 earnings call, Marriott International reported a revenue growth of 1% year-over-year in April, with U.S. and Canada RevPAR up over 4%, while international RevPAR faced a decline of 6%, primarily due to challenges in the Middl…
In the Q1 2026 earnings call for Chipotle Mexican Grill, Inc. (CMG), management reported a revenue of $2.1 billion, which was in line with expectations but reflected a 5% year-over-year decline. Earnings per share (EPS) came in at $6.50, sl…
In the fiscal quarter ending May 2026, Starbucks Corporation (SBUX:US) reported a significant turnaround, with revenue reaching $9.8 billion, marking a 10% increase year-over-year, and earnings per share (EPS) of $1.25, exceeding expectatio…
In the first quarter of fiscal 2027, Best Buy reported revenue of $8.9 billion, exceeding expectations and reflecting a 1.9% year-over-year increase. Adjusted diluted earnings per share rose 11% to $1.28, driven by a 2% growth in comparable…
In the first quarter of fiscal year 2026, Las Vegas Sands Corp. (LVS) reported strong performance driven primarily by its operations in Singapore, which has become a key growth market. The company generated revenue of $3.2 billion, exceedin…
In AutoZone's Q3 FY 2026 earnings call, the company reported total sales of $4.8 billion, reflecting an 8.4% year-over-year increase, the largest growth in over three years. Earnings per share (EPS) rose 7.7% to $38.07, despite a $20 millio…
Deckers Outdoor Corporation (DECK:US) reported a strong fourth quarter for fiscal year 2026, with revenue reaching $1.12 billion, a 10% increase year-over-year. The company achieved record annual revenue of $5.47 billion, also up 10%, and r…
In the first quarter of fiscal 2026, Ross Stores, Inc. reported a significant revenue increase of 21% year-over-year, reaching $6.0 billion, and a remarkable 37% growth in earnings per share (EPS), which rose to $2.02 from $1.47. The strong…
In the first quarter of fiscal 2026, Williams-Sonoma, Inc. (WSM) reported net revenues of $1.81 billion, reflecting a 4.8% year-over-year increase in comparable sales. Earnings per share rose to $1.93, up from $1.85 in the prior year, excee…
In the fourth quarter of fiscal year 2026, Ralph Lauren Corporation reported revenues exceeding $8 billion for the first time, driven by strong performance across all channels and regions. The company achieved a revenue growth of 12% year-o…
In the Q1 2026 earnings call, Booking Holdings Inc. reported a revenue of $4.5 billion, which was in line with expectations, and an adjusted EPS of $12.50, beating estimates by $0.50. Management maintained its long-term growth guidance of 8…
In the first quarter of fiscal 2027, The TJX Companies reported strong financial results, with consolidated sales reaching $15.1 billion, up 5% year-over-year, and diluted earnings per share of $1.19, a 29% increase. Management raised their…
In the first quarter of fiscal 2026, Lowe's Companies, Inc. reported sales of $23.1 billion, reflecting a 10.3% increase year-over-year, with comparable sales rising 0.6%. Adjusted diluted earnings per share reached $3.03, up 3.8% from the
In Q1 2026, Hasbro, Inc. reported a revenue increase of 13% year-over-year, reaching $1 billion, driven primarily by the strong performance of Wizards of the Coast. Adjusted earnings per diluted share rose 41% to $1.47, reflecting effective…
In the Q1 2026 earnings call for Expedia Group, Inc. (EXPE:US), management highlighted a strong recovery in travel demand, with revenue reaching $3.2 billion, up 15% year-over-year, and earnings per share (EPS) of $1.05, exceeding expectati…
In the first quarter of fiscal 2026, The Home Depot reported revenues of $41.8 billion, reflecting a 4.8% year-over-year increase, while adjusted diluted earnings per share decreased to $3.43 from $3.56. The company reaffirmed its guidance