Malibu Boats had net sales of $203.4 million in the third quarter, a 45.8% decline year-over-year. The company said this was driven by subdued retail demand and elevated inventory levels.
Gross margin was down 19.8% driven by fixed cost deleverage due to lower sales, increased mix of the saltwater fishing segment and dealer flooring program costs.
In a statement, the company said it “remained resilient despite facing ongoing macroeconomic challenges, including a softened retail environment and interest rate pressures.”
Malibu said that it is “focused on our dealer network and are taking action to reduce channel inventory levels while leveraging promotional activities to stimulate consumer demand.”
Malibu reported a net cash position of $32 million in the third quarter with the intent to return $10 million per quarter through repurchases and dividends. Unit volume for the quarter was 1,269, a decline from 2,637 in the prior-year quarter. Net sales per unit was $160.3 million, which was up from $142.3 million in the previous year.
The Malibu and Axis brands made up 35.6% of sales, Cobalt was 34.4% and and saltwater fishing was 30%.
Gross margin in the third quarter was 19.8%, down 26.3% year-over-year. Gross profit was $40.3 million, compared with $98.6 million the previous year.
The eight companies under the Malibu Boats umbrella are “strongly positioned to execute our long-term strategy, with demonstrated resilience to support market growth as things correct.”
For the full year, Malibu Boats is forecasting a decline of 40% to 41% in net sales and adjusted EBITDA of 10.1% to 10.5%.
