Malibu Boats, Inc. recently announced its financial results for the first quarter ended September 30, 2023.
Net sales for the three months ended September 30, 2023 decreased $46.4 million, or 15.3%, to $255.8 million as compared to the three months ended September 30, 2022. Malibu reported the decrease in net sales was driven primarily by decreased unit volumes across all segments resulting primarily from decreased retail demand and increased dealer flooring program costs across all segments resulting from higher interest rates and increased inventory levels, partially offset by a favorable model mix across all segments and inflation-driven year-over-year price increases.
“As we moved through the quarter, the retail environment markedly deteriorated with the sense of urgency that customers had over the last few years largely gone, coupled with a challenged interest rate and macroeconomic landscape. Despite this rapidly evolving operating landscape, our financial results for the fiscal first quarter surpassed our expectations. This is a testament to our team’s superior execution, combined with the inherent strength across our lineup of brands. Those customers in the market are continuing to drive elevated sales prices as they look for feature-rich boats,” Jack Springer, CEO of Malibu Boats, Inc. said.
Net sales attributable to the Malibu segment decreased $40.2 million, or 27.7%, to $105.0 million for the three months ended September 30, 2023, compared to the three months ended September 30, 2022. Sales attributable to the company’s Saltwater Fishing segment increased $0.4 million, or 0.4%, to $92.6 million, for the three months ended September 30, 2023. Lastly, net sales within the company’s Cobalt segment decreased $6.6 million, or 10.2%, to $58.2 million for the three months ended September 30, 2023, compared to the three months ended September 30, 2022.
Gross profit for the three months ended September 30, 2023 decreased $17.8 million, or 23.9%, to $56.8 million compared to the three months ended September 30, 2022. The company said the decrease in gross profit was driven primarily by lower net sales partially offset by the decreased cost of sales.
“While we are excited about the opportunities ahead, we remain acutely aware of the headwinds facing consumers and the industry more broadly. I am confident that this team will once again bring its operational prowess to navigate the current environment, while at the same time, advancing our innovation and product development, manufacturing and vertical integration footprint, and operational excellence initiatives to ensure we once again emerge stronger as market conditions improve,” Springer said.