With shares of Brunswick up nearly 25 percent in 2020, CEO David Foulkes said on CNBC’s Closing Bell that he expects the surge in boat sales to continue into 2021, well beyond the surge seen during the Covid-19 pandemic.
“We have incredible momentum in the industry now. We’ve attracted in a new demographic,” Foulkes said on the show, citing that buyers have become more ethnically diverse and younger. “I think that provides us great momentum, not just next year but into future years.”
The company saw a spike in sales all summer that continued into the fall; at the end of October, it reported stronger than expected third quarter results, posting double digit gains in revenue across all segments.
Overall, the manufacturer saw a 26 percent increase in net sales with a whopping 62 percent boost in operating earnings for its propulsion segment.
Boating is “a way to recreate while maintaining social distancing, and I think people see that and appreciate it, and will continue to appreciate it next year and beyond,” Foulkes said.
Foulkes also said that Brunswick plans to ramp up production to keep pace with orders still coming in for this year, following a long period of playing catch-up from facilities that were shuttered in the spring due to Covid-19 restrictions.
“A lot of people who would have normally replaced their boats this year didn’t get a chance to. We expect that replacement trade to come through next year,” Foulkes said.