Skip to main content

Analyst sees increased boat sales in second quarter

Sales comparisons become more favorable in the second quarter, which is the peak of the selling cycle, he said.

Barring a “major external shock,” U.S. consumers will remain much more resilient than expected despite new sales data that showed April boat sales were roughly flat, compared with the same month in the prior year.

“We believe the core marine consumer remains well-positioned,” Wells Fargo senior analyst Tim Conder said in a report following new data released by Statistical Surveys earlier this week.

Though April retail boat sales growth slowed sequentially from March, that could be attributable to a warmer spring and earlier buying, Conder said.

Sales comparisons become more favorable in the second quarter, which is the peak of the selling cycle, he said.

“Combining the industry setup with a potentially warmer spring, [the] U.S. marine industry could see product stock outs, especially in [California] and northern states,” Conder said.

“U.S. fundamentals remain aligned for continued mid-single-digit unit growth despite evolving macro concerns given (1) a healthy consumer backdrop, (2) historically clean company/channel inventories, (3) manufacturer innovation, (4) new/used supply/pricing dynamics, and (5) improving mix,” Conder said. “We believe the core marine consumer remains well-positioned.”

Headwinds will continue from European manufacturers of boats 50 feet and larger that are aggressively marketing in the United States, he said. Canada and South America will also continue to be challenged because of a strong U.S. dollar and ongoing macro challenges in Brazil, respectively.

Wells Fargo tracks publicly traded companies that include Brunswick Corp., BRP, Malibu and MasterCraft.

Related

1_LIMESTONE

Limestone Secures Financing for Expansion

The company said the $6 million in credit will be used to improve its Tennessee manufacturing facility and buy new equipment.

1_MCKENZIE

Mastry Marine Names Repower Center

St. Augustine, Fla.-based McKenzie Marine is the engine distributor’s latest designated Suzuki Repower Center.

1_VANDERBILT

Vanderbilt Ships First Pontoon

The company said the 700T Series was the first model shipped from its new Fort Wayne, Ind., factory and was delivered to The Marina in Angola, Ind.

1_CHIPS.ACT

NMMA Celebrates CHIPS Act

The legislation aims to return semiconductor manufacturing to the U.S. and allows businesses to deduct R&D costs in the same year they are incurred.

1_COX

Cox Marine Hires Sales and Support Staff

The diesel outboard builder this week brought aboard a new regional sales director, regional sales manager and an aftersales manager.

1_DEALEROUTLOOK

Boating Interests Lose Wind Farm Battle

The Ohio Supreme Court has ruled that a proposed wind farm off the Cleveland, Oh., waterfront meets planning requirements.

1_INFLATION.JULY

July Inflation Data Lags June

Consumer Price Index results may indicate that inflation has peaked, and Producer Price Index data was below market expectations.

1_YAMAHA

Yamaha Posts Higher Sales, Profit

The company’s first half 2022 net sales increased to $1.93 billion, and segment income rose to $330 million.