SMID Consumer Takeaways from 35+ Companies...

Research evidence excerpt

SMID Consumer Takeaways from 35+ Companies...

May 20, 2026

OneSpaWorld (Cruise Onboard Spa Operator - OSW)

Management noted macro headwinds like fuel costs and geopolitical tensions, but emphasized these are manageable

given the cruise industry's ability to shift capacity away from conflict areas. Q2 is typically their strongest quarter, and

the industry remains in a healthy, status quo state. Europe showed some softness initially but has since picked up.

Retail attachment remains strong, and consumers are even trading up to higher-ticket items like acupuncture, with no

meaningful slowdown observed. The lower-income consumer does not typically spend meaningfully with OSW in good

or bad times, so the bifurcated economy has limited impact. The only historical precedent for a drop in retail attachment

was during the Global Financial Crisis.

Management is not concerned about potential cruise travel booking softness in Mediterranean sailings. Ships sailing in

the Mediterranean are performing well and small shifts in cruise occupancy (i.e. from 105% to 102%) have a negligible

impact on OSW. OSW only needs 11% of onboard guests to visit the spa to generate its revenues, and cruise lines

typically provide onboard credits rather than reducing capacity when demand softens, which does not affect OSW's

margin.

Funko (Toy Company - FNKO)

Funko delivered strong momentum through the holidays and into Q1, with core collectibles and gross margins also

seeing strong performance. Growth was driven by price increases, reduced promotions, disciplined SKU management,

and reset licensing deals that lowered minimum royalty obligations. The company reiterated its full-year guidance, with