OneWater Marine reported a 1 percent decrease in revenue to $402.2 million and an 11 percent drop in same-store sales for its fiscal third quarter, citing significant inventory challenges which hindered sales for the period when compared to last year.
However, the loss was offset by a big jump — 58 percent— in service, parts and other sales to $29.6 million (from $18.7 million), part of the company’s invigorated focus on this segment of the business.
At $127 million, gross profit saw a gain of 34 percent, or $32.3 million from the same time last year. And net income totaled $51.6 million (from $40.6 million) up 27 percent. The increases can be attributed to the mix of boats sold, heightened gross profit during the quarter and the increase in service, parts and other sales, the company reported.
CEO Austin Singleton highlighted the positive overall results even with the continued challenges they have faced in 2021.
“The OneWater team delivered strong third quarter results, expanding gross margin by more than 800 basis points and growing earnings per diluted share to $3.04, despite the lean inventory environment. Additionally, we made tremendous progress on building our higher margin service, parts and other business which further supported our growth in the quarter,” Singleton said in a statement.
Singleton added: “Our operational efficiencies and superior execution to date further underscore OneWater’s resiliency. We continue to deliver on our multi-faceted growth strategy through strategic acquisitions and growing our higher margin, less cyclical service, parts and other business to expand market share and drive long-term shareholder value.”