Malibu Boats (NASDAQ:MBUU) has reported a decline in first-quarter sales as it sold fewer boats in a tough environment.
The company’s shares fell in early Tuesday morning trade despite the results coming in ahead of analysts’ forecasts.
The company said in a statement that the retail environment deteriorated markedly during the quarter ended September 30, 2023, exacerbated by a “challenged interest rate and macroeconomic landscape.”
“Despite this rapidly evolving operating landscape, our financial results for the fiscal first quarter surpassed our expectations,” commented CEO Jack Springer.
“This is a testament to our team’s superior execution, combined with the inherent strength across our lineup of brands. Those customers in the market are continuing to drive elevated sales prices as they look for feature-rich boats.”
For the quarter, unit volume decreased 24% from a year earlier to 1,698. That resulted in a 15% decline in revenue to $255.8 million, beating the $243.8 million expected by the Street.
Adjusted earnings per share fell 37% to $1.13, above the $0.90 expected by analysts polled by Zacks Investment Research.
For its full 2024 financial year, Malibu said it expects net sales to decline by the high teens to low twenties from 2023, with its adjusted EBITDA (underlying earnings) margin down by 350-450 basis points year-over-year.
The company’s shares traded 4.1% down at $43.27 by 10am in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com