The boat dealership operator, OneWater Marine, saw its shares drop nearly 17% in premarket trading following a significant decrease in profit for the fiscal third quarter. As a result, the company has also revised its full-year outlook.
Challenging Market Conditions
CEO Austin Singleton stated that the boat market experienced a faster-than-expected decline, causing the company’s profit margins to be under pressure. Singleton commented, “The marine industry is moving back towards historical norms and more moderate pricing. However, this transition occurred at a quicker pace than anticipated.”
For the three months ended June 30, OneWater Marine reported a profit of $28.6 million, translating to $1.95 per share. This is significantly lower than the profit of $56.0 million, or $3.86 per share, recorded during the same period last year. Analysts had expected a profit of $3.29 per share according to FactSet.
Quarterly sales did see a growth of 4.5% to reach $594.3 million, but this fell short of the $630.3 million expected by analysts.
OneWater Marine has also adjusted its full-year forecast, projecting earnings of $4.45 to $4.70 per share compared to the previous estimate of $7.50 to $8.00 per share. The company now expects same-store sales to remain flat, which is at the lower end of its previously communicated guidance.
It remains to be seen how OneWater Marine will navigate these challenges in the coming months.