Direct Answer
10 SEC filers are classified under the Standard Industrial Classification codes that describe the leisure products industry, and their latest annual reports show $9.6 billion of combined revenue and a median operating margin of -3.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Leisure product makers produce sporting goods, toys, bicycles, boats and recreational products sold through retailers and dealers. Demand follows discretionary income and participation, with inventory cycles after demand spikes. The first numbers to compare across companies here are net sales, gross margin and dealer or retailer inventory.
Key Industry Metrics
- Net sales: Total revenue from sporting goods, toys, bikes and recreational products. Demand is discretionary and seasonal, so compare it year over year and across categories.
- Gross margin: Share of sales left after materials, labor and freight. Promotions, input costs and plant utilization move it, and discounting to clear stock lowers it.
- Dealer or retailer inventory: Stock held by dealers or retailers compared with sell-through. High channel stock leads to lower shipments later, so it explains why sales can fall faster than demand.
- Product mix: Breakdown of sales across categories and price tiers. A shift toward higher-end or lower-end items changes average price and profit, even when volume is flat.
- Backlog: Orders received but not yet shipped. It gives near-term visibility, especially for dealer-based items, but can shrink quickly if credit or confidence weakens.
Primary Macro Drivers
- Consumer discretionary spending: Recreational goods are optional purchases, so household budgets move net sales and the mix between low-cost and big-ticket items.
- Participation trends: Increased interest in sports and hobbies raises demand for gear, shown in orders and retailer sell-through.
- Interest rates and credit: Big-ticket items such as boats are financed, so rates affect affordability and orders.
- Weather and seasonality: Sales are timed to seasons such as summer and winter, so weather can shift demand between quarters and change channel inventory.
Major Risks
- Cyclical demand: Sales fall in downturns because products are optional, with operating leverage amplifying earnings declines.
- Inventory swings: After demand spikes, retailers hold too much stock and cut orders, hitting shipments.
- Input costs: Resin, metals, freight and component cost changes affect gross margin if prices cannot adjust.
- Retail concentration: A handful of large retailers account for much of sales, giving them leverage on terms and orders.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Leisure Products Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3944, 3949. Their latest fiscal years end between 2025 and 2026, and together they reported $9.6 billion of revenue. Median revenue growth over the prior year was -4.9%. Median operating margin was -3.7% and median net margin -5.3%. Median total liabilities were 44% of total assets, and 3 of 10 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Hasbro, Inc. | $5.4 billion | 13.1% | 0.2% | -6.0% | FY 2025 |
| Yeti Holdings, Inc. | $1.9 billion | 2.1% | 11.4% | 8.9% | FY 2026 |
| Funko, Inc. | $908 million | -13.5% | -5.0% | -7.4% | FY 2025 |
| Johnson Outdoors Inc | $592 million | -0.1% | -2.7% | -5.8% | FY 2025 |
| Clarus Corp | $250 million | -5.2% | -23.8% | -0.0% | FY 2025 |
| Escalade Inc | $240 million | -4.5% | 7.8% | 5.7% | FY 2025 |
| American Outdoor Brands, Inc. | $191 million | -14.3% | -4.7% | -4.8% | FY 2026 |
| Jakks Pacific Inc | $113 million | -83.6% | 12.6% | 8715.9% | FY 2025 |
The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Leisure Products guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Leisure Products industry?
Key performance indicators for the Leisure Products industry include: Net sales, Gross margin, Dealer or retailer inventory, Product mix, Backlog. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Leisure Products industry?
The Leisure Products industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Leisure Products industry?
The primary risks for Leisure Products companies include: Cyclical demand, Inventory swings, Input costs, Retail concentration. Investors should assess each company's exposure to these factors and its track record of navigating them.