Revenue is up 5% year-on-year for MarineMax reports its fiscal 2024 third quarter results for the period up to June 30 2024. Same-store sales increased by 4% but the profit margin fell.
The increase in same-store sales reflects higher new and used boat revenue as well as other areas of MarineMax’s retail operations segment, including marina, parts, finance and insurance, super yachts group and charter.
The recreational boat, yacht and superyacht services company had a June quarter revenue of $757.7 million but gross profit decreased 1% to $242.1 million from $243.8 million in the same 2023 period, with a greater amount spent on selling, general, and administrative expenses.
The decrease in gross margin from 33.8% to 32% was due to a higher level of promotional activity in challenging retail operating conditions.
These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry wide.
Brett McGill CEO and president
It also partly reflected restructuring expenses and new locations such as AGY, C&C Boat Works and Williams Jet Tenders, which were added since the beginning of the fiscal 2023 third quarter.
But the company says its strategy of expansion into higher margin business is paying off.
“This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile—now consistently exceeding 30%—and enhanced our cash flow generation and balance sheet resilience,” explained Brett McGill CEO and president.
“These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry wide.”
He added: “The recent formation of our new SuperYacht Division (SYD) exemplifies our strategy to generate increasing operating and commercial synergies across our portfolio.”
In addition, he explained that the introduction of cost-cutting measures will allow MarineMax to better align its expense structure with the current operating environment and further improve its cash flows.
