MasterCraft Boat Holdings Inc. ended the fourth quarter with higher demand across all its brands, with net sales of $51.1 million, a decrease of $71.1 million, or 58.4 percent, compared to the fourth quarter last year.
The decline was due to the loss of production during the Covid-19 shutdowns and supplier and workforce ramp-up, the company said.
Gross profit declined $24.1 million to $7.4 million, a 76.5 percent decline over the same period last year, and gross margins decreased 11.1 points to 14.5 percent for the fourth quarter, down from 25.6 percent last year.
Dealer inventories were down 40 to 50 percent versus the end of fiscal 2019.
Net sales for fiscal 2020 were $363.1 million, a decrease of $103.3 million, or 22.2 percent, compared to $466.4 million for the prior year.
The company attributed the declines to lower volumes resulting from manufacturing suspension, the company’s pre-pandemic efforts to reduce inventory levels, and pre-pandemic softness in the saltwater fishing segment.
Those headwinds were somewhat offset by the inclusion of Crest’s first-quarter 2020 results — the company was acquired in the second quarter of 2019 — in addition to the new Aviara brand, and higher average wholesale prices for all brands.
“Despite the headwinds faced throughout the year, I am extremely proud of how our team embraced the challenge and continued to execute on our new customer-centric strategy, improving our quality systems and working with our dealer partners to capitalize on the unprecedented interest in boating by consumers,” said MasterCraft CEO Fred Brightbill in a statement.
“The surge in retail demand and the historically low level of dealer inventory across our brands sets us up for significant growth this year and beyond,” said Brightbill. “The heightened interest in boating as a safe, fun, outdoor, family-friendly recreation is expected to endure.”