Revenue at MarineMax declined in the third quarter from $345.6 million in 2016 to $329.8 million this year, with same-store sales decreasing 10 percent after 44 percent growth last year.
The company cited softness in larger product categories and a delayed buying season in the Northeast because of unseasonal weather as causes for the declines and lowered its annual earnings expectations for earnings per diluted share to be in the range of 97 cents to $1.02 for fiscal 2017, from $1.14 to $1.24.
Primarily because of the strength of product margins and a rise in the company’s traditionally higher-margin businesses, gross margin increased 290 basis points in the quarter.
Net income was $14.2 million, or 57 cents a diluted share, compared with $13.8 million, or 56 cents a share, in the quarter last year.
“We are pleased with our team’s ability to drive unit sales growth and strong gross margin expansion during the important June quarter,” MarineMax chairman and CEO William McGill said in a statement.
“Reports of industry softness in larger product categories, combined with delayed sales due to unseasonal Northeast weather, dampened our overall revenue and therefore earnings in the quarter,” McGill said.
“We believe the revenue impact from these challenges will be made up in the future as the underlying trends in the industry are healthy, as evidenced by our ability to grow units on a comparable basis and meaningfully increase gross margins in the quarter,” he said. “Our product portfolio, new innovative models and customer-centric approach continues to resonate well with consumers.”
Revenue increased 12 percent, to $801.7 million, for the nine-month period that ended June 30, compared with $714.7 million for the comparable period last year.
Same-store sales grew about 6 percent on top of 25 percent growth for the comparable period last year.
Net income for the nine-month period was $19.6 million, or 78 cents a diluted share, up 13 percent from $17 million, or 69 cents a share, for the comparable period last year.
“We remain confident in our ability to deliver industry-leading results,” McGill said. “Fundamentally the demand for the boating lifestyle remains strong and our long-term outlook for the industry is intact. With our capital-rich balance sheet, healthy inventory levels, premium brands and strong team, we are well-positioned to drive earnings and cash flows while taking advantage of opportunities that may arise.”