OneWater Marine reported second-quarter revenues of $488 million, a 7% decrease year-over-year. Same-store sales were down 5%, translating to a 4% increase for the last two years. Gross profit margin was 24.6%.
“Our second quarter results were largely in line with our expectations and historical seasonality as we continue to outperform the industry,” CEO Austin Singleton said in a statement. “However, our margins are stabilizing, and finance and insurance penetration remain strong, which is encouraging as we head into the summer selling season.”
New-boat sales were down 7.9% to $327.3 million, driven by a reduction in units sold and average price per unit. Preowned-boat revenue increased 4.9% to $78.6 million due to a rise in trade-ins. Finance and insurance decreased 3.9% compared with the previous year but was in-line as a percentage of total boat sales. Service, parts and other sales were down 13.7% to $67.6 million.
Gross profit totaled $120.4 million for the second quarter, and administrative expenses of $65.5 million were 17.7% of revenue. Gross profit margin of 24.6% decreased 340 basis points compared with the prior year period.
Late in the quarter, OneWater took actions to better align its cost structure with the normalization of sales and margins, recording $11.8 million in restructuring charges, including amounts related to the “reduction of headcount, closure of select satellite locations, termination of certain manufacturer relationships, and abandonment of certain in-process IT related projects.”
“As we assess the business in normalized environment, we are tracking in-line with pre-Covid seasonal metrics, reinforcing the strength and durability of our business model,” Singleton said. “In addition to our variable cost structure, we proactively took actions in the quarter to optimize our cost structure. We remain committed to judicious expense management, and we have additional flexibility, if necessary.”
