In the first quarter of fiscal 2025, MarineMax experienced a decrease in revenue by 11.2%, amounting to $468.5 million compared to $527.3 million in the same period of fiscal 2024.
This decline in revenue was primarily influenced by lower boat sales and the disruptions caused by Hurricanes Helene and Milton, which affected the results for the period ending on December 31, 2024.
On a comparable-store basis, revenue saw an 11% decrease from the previous year, contrasting with a 4% increase in the first quarter of fiscal 2024 compared to the same period in fiscal 2023.
Despite these challenges, the gross profit margin for the recreational boat, yacht, and superyacht services company stood at 36.2%, with a 3.3% decrease in gross profit to $169.7 million from $175.5 million in the prior-year period.
Brett McGill, the CEO and president of MarineMax, commented on the company's performance, stating, “Our revenue and same-store sales in the December quarter were impacted by the soft retail environment prevailing in the recreational boating industry in 2024, as well as the disruptions caused by Hurricanes Helene and Milton.”
Looking ahead to fiscal 2025, our focus will be on maintaining cost efficiency and ensuring a strong balance sheet.
Brett McGill
McGill acknowledged the economic uncertainties that led to subdued demand during the quarter, resulting in lower revenue and higher inventory levels than anticipated by the company.
However, he highlighted that despite the challenging economic conditions, MarineMax managed to strengthen its gross profit margin.
He attributed this improvement to factors such as the promotional environment, sales mix changes year-over-year, and the significant contribution from higher-margin business segments like marinas, Superyacht Services, finance, and insurance operations.
Through strategic acquisitions and organic growth, the company has enhanced its margin and diversified its business, thus increasing its resilience to industry challenges.
Additionally, MarineMax continued its efforts to reduce expenses by divesting or closing down three locations.
Looking forward, McGill emphasized the importance of maintaining cost efficiency and a robust balance sheet in fiscal 2025 to drive profitability and fortify the company's operational base.
Despite the ongoing economic challenges in the recreational marine sector, MarineMax anticipates an improvement in activity as the industry transitions into the spring selling season.
The news article "MarineMax revenue decreases 11%, profit margin increases" was originally published on Marine Business.
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