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Malibu Boats (NASDAQ:MBUU) sank in early trading after posting soft FQ2 results and warning on wavering retail demand.
For FQ2, sales decreased 37.7% year-over-year to $211.1M. Unit volume fell 43.7% to 1,373 units. Gross profit declined 50.5% to $37.5M. Net income was down 72.1% to $10.1M. Adjusted EBITDA decreased 60.2% to $22.9M. “Our second quarter results, historically our slowest time of the year, were impacted by weak retail demand,” noted CEO Jack Springer. The decrease in sales for Malibu Boats (MBUU) was driven primarily by decreased unit volumes across all segments resulting primarily from decreased retail demand and increased dealer flooring program costs across all segments resulting from higher interest rates and increased inventory levels, partially offset by a favorable model mix in our Malibu and Saltwater Fishing segments and inflation-driven year-over-year price increases.The company said it is recalibrating wholesale production to match retail demand as seasonality, along with continued interest rate pressures has resulted in elevated inventory levels. “Looking ahead, while we are optimistic about our ability to return to growth as the market recovers, we will remain lean and nimble.” observed Springer.
Shares of Malibu Boats (MBUU) slid 13.80% on light premarket trading volume to $43.99 vs. the 52-week range of $42.07 to $65.45.
