MasterCraft Boat's sales for its fiscal second quarter have fallen, and the company has warned that its current quarter is unlikely to see the typical pickup in seasonal demand.
Q2 Financial Results
For the three months ended December 31, the Vonore, Tenn.-based company reported a net income of $5.89 million, or 34 cents a share. This is in comparison to $19.7 million, or $1.11 a share, for the same period a year earlier. Adjusted earnings were 37 cents a share, surpassing the 23 cents per share that analysts surveyed by FactSet had expected.
Sales for the quarter dropped almost 38% to $99.5 million but still exceeded analysts' expectations of $95.5 million. The decline in sales is attributed to lower unit sales and higher dealer incentives.
Challenging Retail Environment
Chief Executive Fred Brightbill acknowledged that the retail environment has become increasingly competitive due to lower demand and higher inventory levels. He also cited adverse macroeconomic factors, including elevated interest rates, that are impacting the demand for recreational boats and luxury consumer goods.
Current Quarter Outlook
For the current quarter, MasterCraft Boat is projecting adjusted earnings of 23 cents a share on sales of approximately $92 million. Both of these targets are below analysts' expectations.
