Retail sales news buoys Brunswick stockPosted on
Signs of a potential retail recovery sent shares of Brunswick Corp. up 8 percent Wednesday to close at $17.78 per share.
“There is a general sense of optimism that the marine industry is turning,” Hayley Wolff, senior analyst with Rochdale Research, told the Web site Chicago Breaking Business.
The stock market reacted favorably to a number of economic indicators Wednesday, including a report that retail sales rose 1.6 percent in March, the third straight monthly gain.
Still, the appetite for high-ticket, discretionary purchases may take awhile to recover, said Philip Gorham, a consumer products analyst with Morningstar Inc.
“I would think it would take a substantial turnaround in consumer confidence for people to start buying boats again,” he said. “This particular industry may have a couple more challenging quarters before it sees a recovery in demand.”