Shares Decline as Malibu Boats Reports Drop in Sales
Boatmakers including Mastercraft Boat Holdings and Brunswick experienced a decrease in stock prices after Malibu Boats revised its full-year sales outlook and reported a significant decline in sales for the previous quarter.
Mastercraft, a direct competitor of Malibu Boats, saw its shares drop by over 7% to $19.81 during afternoon trading. The stock has suffered a decline of more than 28% over the past year.
Brunswick, an industry leader in the boating sector, also experienced a decline of over 3% in its stock price. Marine Products saw its shares fall by more than 4%. Malibu Boats stock, meanwhile, is currently trading nearly 18% lower.
Malibu Boats Chief Executive, Jack Springer, acknowledged that consumers are exercising patience and seeking the best deal, taking advantage of available inventory. In response to decreased demand resulting from rising interest rates, the company has adjusted its wholesale production accordingly.
Malibu Boats now anticipates a mid-to-high thirties percentage decrease in sales for the fiscal year. This forecast stands in contrast to prior guidance, which projected a sales decline percentage in the high teens to low twenties.
The boating industry continues to confront challenges, but with aggressive promotions by dealerships and a stabilization of demand, there are hopes for a recovery in the near future.