MarineMax, which bills itself as the world's largest recreational boat, yacht and superyacht services company, announced results for the second quarter ended March 31, 2024.
In its summary, the company said its same-store sales were up 2%, gross margin was 32.7%, and revenue for the March quarter was $582.9 million (revenue growth was mainly driven by higher yacht sales).
However, gross profit decreased 5.2% to $190.4 million from $209 million in the year-ago quarter. MarineMax's gross margin of 32.7% decreased by 250 basis points from 35.2% in the year-ago quarter, mainly due to the impact on margins due to the ramp-up of promotions in yacht sales to attract more customers in a challenging retail environment.
Brett McGill, chief executive officer and president of MarineMax, said: "Our results were impacted by continued weakness in the yachting market, which highlights broader macroeconomic issues, including rising interest rates and ongoing inflation. Despite people's enthusiasm for yachts, we need more aggressive promotions to help them make purchasing decisions. ”
He continued: "Although we continued to operate in a challenging market environment, as evidenced by a larger-than-expected decline in yacht registrations across the industry, we drove sales growth in the second quarter. Our gross margin also remains strong, which is a direct reflection of our commitment to high-margin business strategic growth. ”
"We will continue to focus on driving growth by investing in strong, higher-margin businesses that will elevate the customer experience and expand our profit position. During the quarter, we successfully completed the acquisition of Williams Bidders in the United States. This strategic move has resulted in MarineMax securing exclusive distribution rights for the world's top brand of rigid inflatable jet submarines in the luxury yacht market in the United States and the Caribbean. ”
He further said, "We are taking additional steps to optimize our spend while maintaining a superior customer experience and service. These measures are designed to make our cost structure more in line with the current environment. Our actions will strengthen our solid cash position and healthy balance sheet, and we will gain more opportunities as market conditions improve. ”