Boat and marine products retailer MarineMax (NYSE:HZO) missed analysts' expectations in Q1 CY2024, with revenue down 2.2% year on year to $582.9 million. It made a non-GAAP profit of $0.18 per share, down from its profit of $1.23 per share in the same quarter last year.
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MarineMax (HZO) Q1 CY2024 Highlights:
- Revenue: $582.9 million vs analyst estimates of $590.2 million (1.2% miss)
- EPS (non-GAAP): $0.18 vs analyst estimates of $0.67 (-$0.49 miss)
- Gross Margin (GAAP): 32.7%, down from 35.2% in the same quarter last year
- Same-Store Sales were up 2% year on year
- Store Locations: 83 at quarter end, increasing by 5 over the last 12 months
- Market Capitalization: $606.1 million
Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.
Boat & Marine RetailerRetailers that sell boats and marine products sell products, sure, but they also sell an image and lifestyle to an often wealthier customer. Unlike a car–which many use daily to get to/from work and to run personal and family errands–a boat or yacht is certainly a discretionary, luxury, nice-to-have purchase. While there is online competition, especially for research and discovery, the boat and yacht market is still very brick-and-mortar based given the magnitude of the purchase and the logistical costs associated with moving these products over long distances.
Sales GrowthMarineMax is a small retailer, which sometimes brings disadvantages compared to larger competitors that benefit from economies of scale.
As you can see below, the company's annualized revenue growth rate of 14.8% over the last five years was solid despite not opening many new stores, implying that growth was driven by increased sales at existing, established stores.
This quarter, MarineMax's revenue grew 2.2% year on year to $582.9 million, falling short of Wall Street's estimates. Looking ahead, Wall Street expects sales to grow 3.3% over the next 12 months, an acceleration from this quarter.
Same-Store Sales MarineMax's demand within its existing stores has barely increased over the last eight quarters. On average, the company's same-store sales growth has been flat.
In the latest quarter, MarineMax's same-store sales rose 2% year on year. This growth was a well-appreciated turnaround from the 13% year-on-year decline it posted 12 months ago, showing the business is regaining momentum.
Key Takeaways from MarineMax's Q1 Results
We struggled to find many strong positives in these results. Its revenue and EPS missed analysts as its same-store sales fell short of analysts' expectations (2% vs estimates of 4%). Management was forced to use more aggressive promotional activity to stimulate demand as it cited a challenging market environment; there was an industrywide decline in boat registrations this quarter.
As a result of the macroeconomic softness, MarineMax significantly lowered its full-year earnings forecast (EPS and EBITDA), missing Wall Street's estimates.
During the quarter, the company completed its acquisition of William Tenders USA, a luxury yacht tender.
Overall, this was a bad quarter for MarineMax. The stock is down 8.9% after reporting and currently trades at $27.18 per share.