Malibu’s net sales increased $14.3 million, or 8.6 percent, to $180.1 million in the fiscal second quarter, and increased unit volume 2.5 percent to 1,804 units.
The company attributed those gains to increased demand for Cobalt and Pursuit, coupled with year-over-year price increases across all brands, though they were partially offset by the lower average selling price of Pursuit offerings due to model mix.
“Our momentum extended into the second fiscal quarter of 2020,” said Malibu Boats CEO Jack Springer in a statement. “We delivered strong financial and operational results driven by robust growth across our brands, and at the same time, we very successfully overcame the headwinds as a result of the UAW strike and the impact it had on our engine supply.”
Gross profit for the quarter increased $1.6 million, or 4.1 percent, to $39.9 million compared to the second quarter the year prior. The company’s commitment to vertical integration and operational efficiency helped support margin expansion in the quarter, said Springer.
The increase in gross profit, due mainly to contribution from higher net sales, was partly offset by expenses related to the UAW strike.
Gross margin for the quarter decreased 100 basis points from 23.1 percent in the second quarter of 2018 to 22.1 percent in the same period last year, primarily due to $1.7 million in costs related to the almost six-week United Auto Workers strike — the longest nationwide strike against General Motors in half a century, according to The New York Times.
Net sales attributable to the Malibu segment increased $7.3 million, or 8.1 percent, to $97.3 million, driven primarily by higher sales of new, more expensive models and optional features, which led to a higher net sales per unit for Malibu and Axis models. That was partially offset by a slight decrease in overall units sold.
Cobalt’s net sales grew $3.1 million, or 6.9 percent, to $49 million, due to an increase in units sold and year-over-year price increases on Cobalt models.
Sales from the Pursuit brand increased $3.9 million, or 12.9 percent, to $33.8 million. That increase — attributed to more units sold and price increases — was offset by lower average selling prices due to the model mix sold.
Overall consolidated net sales-per-unit increased 6 percent to $99,840-per-unit. That gain was driven by an 8.4 percent increase in Malibu, to $88,399, and partly offset by an 11.7 percent decline in the Pursuit segment to $237,965-per-unit.
“Initial feedback from January boat shows supports our belief of continued healthy market conditions and underscored the strength of our model year 2020 products,” said Springer.