As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary industry, including Levi's (NYSE: LEVI) 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 15 consumer discretionary stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was 1.3% above.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.

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 $1.61 billion, up 4.3% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, President and CEO of Levi Strauss & Co. “We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories. While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season, including in the U.S. Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”

Interestingly, the stock is up 8.4% since reporting and currently trades at $21.15.

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

Best Q3: Hasbro (NASDAQ: HAS)

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Hasbro reported revenues of $1.60 billion, up 15% year on year, outperforming analysts’ expectations by 7.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Hasbro achieved the biggest analyst estimate beat of the whole group. The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $117.53.

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

Weakest Q3: Scholastic (NASDAQ: SCHL)

Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ: SCHL) is an international company specializing in children's publishing, education, and media services.

Scholastic reported revenues of $216.8 million, down 3.9% year on year, falling short of analysts’ expectations by 3.5%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

Scholastic delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.6% since the results and currently trades at $38.51.

Read our full analysis of Scholastic’s results here.

CBRE (NYSE: CBRE)

Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.

CBRE reported revenues of $11.5 billion, up 12.5% year on year. This number came in 2.4% below analysts’ expectations. Overall, it was a slower quarter for the company.

The stock is down 8.5% since reporting and currently trades at $123.49.

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

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 $8.44 billion, up 3.5% year on year. This result beat analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.

The stock is up 17.9% since reporting and currently trades at $26.10.

Read our full, actionable report on Carnival 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.