MarineMax says 2Q strategy boosted market share

Posted on

Bad weather and continued softness in the sterndrive and inboard segments caused MarineMax to continue offering promotions and discounts in the second quarter of 2013, enabling the country’s largest boat retailer to increase market share.

“While all of our markets were impacted by adverse weather during the June quarter, the primary growth contributions came from our New York region, including Connecticut and Rhode Island, and to a lesser degree, Florida,” MarineMax CEO Bill McGill told investors and analysts during a quarterly earnings call Thursday. “Interestingly, our March quarter resulted in even more meaningful market share gains than we had previously anticipated.”

MarineMax also offered promotions in the first quarter in response to adverse weather conditions, which paid off “in a major way” in terms of market share gains, McGill said.

“Midway through the June quarter, as weather conditions persisted, we increased our promotional activities further in an effort to gain additional market share and revenue,” McGill said. “We believe we will again see strong market share gains from the June quarter, as well, but this growth came at the cost of incremental expenses, which pressured our earnings in the short term.”

“I would say some of the business we are seeing now in July is as a result of the efforts we have put forth last quarter to help drive it,” McGill said. “And so, we are encouraging our people to get onto the water. We’ve got a lot of promotions going on right now, not only with the manufacturers, but also internally to get people into the showroom and also get them on our gateways and get them out boating.”

MarineMax CFO Mike McLamb said the promotions should be short-term.

“Given the industry data I think everybody has seen on sterndrive and inboard boats, which is our primary product, [sales] were soft in the June quarter,” McLamb said. “We are incrementally more promotional right now to keep driving business into shorter markets.”

“If you see negative industry data in sterndrives and inboards, both of which today are still primarily the biggest part of our business — although we’re becoming more diversified with aluminum pontoon and fishing boats, ski boats and all that — but if you see the type of negative data that you saw, you can probably assume that we experienced it,” McGill said. “I would like to say we’re fighters and we are scrappers, so we’re trying to make business happen and so our earnings may be pressured.”

New York and New Jersey continued to be tough markets in the wake of Hurricane Sandy, McGill said, adding that he believes pent-up demand will cause a sales boost in 2014.

— Reagan Haynes

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

One comment on “MarineMax says 2Q strategy boosted market share

  1. Curtis

    Market share doesn’t mean squat when they are still losing money. When they start showing a profit I will be impressed. Until then they are just like any other dealer paying flooring and continually losing money.
    Have a nice day

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

What is the best outcome for the marine industry in the November mid-term elections?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password