Shares of Mastercraft Boat Holdings, Brunswick and other boatmakers traded lower after Malibu Boats cut its full-year sales outlook and reported a steep drop in sales for the recently ended quarter.
Shares of Malibu Boats rival Mastercraft fell more than 7% to $19.81 in afternoon trading. The stock is down more than 28% over the past 12 months.
Shares of Brunswick, an industry heavyweight that reports quarterly results on Thursday, slipped more than 3%. Shares of Marine Products fell more than 4%. Malibu Boats stock recently traded nearly 18% lower.
“The consumer is being very patient,” Malibu Boats Chief Executive Jack Springer said on a conference call with analysts. “They know inventory is available and they are looking for the best deal.”
He said dealerships are offering aggressive promotions to stoke demand, which surged during the pandemic. Rising interest rates, though, crushed demand last year, and Malibu said it has throttled wholesale production in response.
For the fiscal year, Malibu Boats now expects sales to fall by a mid-to-high thirties percentage, compared with prior guidance for a sales decline percentage of high teens to low twenties.