Sector
Consumer Discretionary sector explained
Companies that sell things people choose to buy rather than need every day: cars, online and store retail, travel, restaurants, clothing and home goods.
Companies we cover
2 companies in Consumer Discretionary
Amazon
AMZNAmazon sells goods online, rents computing power through AWS and sells ads, with net sales of $716.9 billion in FY2025.
Data depth: RichCovers Q2 FY2026
Tesla
TSLATesla makes electric cars and battery storage for homes and power grids, with revenue of $94.8 billion in FY2025.
Data depth: RichCovers Q3 FY2026
How companies in this sector earn
How do Consumer Discretionary companies make money?
- Retailers buy goods and sell them for more, or charge other sellers fees to use their stores and websites.
- Carmakers sell vehicles through dealers or directly, and some also sell software, charging and services.
- Some companies add subscriptions, advertising or cloud services on top of their main business.
- The cost of the goods sold, shipping and staff are usually the largest costs.
Who regulates it
Federal Trade Commission (FTC), for competition and consumer protection · National Highway Traffic Safety Administration (NHTSA), for vehicle safety · Consumer Product Safety Commission (CPSC)
What moves results across the sector
- Household spending, which moves with jobs, wages and interest rates.
- Tariffs and shipping costs on imported goods and parts.
- Vehicle safety investigations and recalls for carmakers.
Words you'll meet
Key terms
- Gross merchandise value
- The total value of goods sold through a marketplace, including goods sold by other sellers.
- Fulfillment
- Storing, packing and shipping orders to customers.
- Deliveries
- The number of vehicles a carmaker handed over to customers in a period.
- Same-store sales
- Sales growth at stores open for at least a year, leaving out new openings.
Last updated Oct 27, 2026.
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