MarineMax(US:HZO)2026-01-29 16:02Financial Data and Key Metrics Changes - Revenue for the December quarter increased year-over-year to $505 million, supported by nearly 11% same-store sales growth [11][12] - Gross profit was $160 million, down from the prior year due to margin pressure, with gross margins over 400 basis points below historical levels [13][14] - Reported net loss per share was $0.36, or $0.21 on an adjusted basis, with adjusted EBITDA at $15.5 million [14][15] - The company maintained a strong balance sheet with nearly $165 million in cash and improved current ratio [15] Business Line Data and Key Metrics Changes - Same-store sales performance was driven by premium brand offerings and a shift towards larger products, despite unit volume declining by low- to mid-single digits [7][12] - Higher-margin businesses, such as marinas, finance and insurance, and superyacht services, contributed positively to consolidated gross profit [13][31] Market Data and Key Metrics Changes - Market conditions remained challenging with elevated promotional activity and cautious retail behavior affecting demand patterns [6][9] - The company successfully reduced inventory levels by nearly $170 million compared to last year, indicating progress towards normalized inventory levels [8][15] Company Strategy and Development Direction - The company aims to expand into higher-margin, more stable businesses through acquisitions and operational improvements [8][9] - Focus remains on maintaining appropriate inventory levels, delivering high-quality customer experiences, and managing the business with a long-term perspective [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding early demand signals from boat shows, indicating potential for growth in the spring selling season [10][19] - The outlook for fiscal 2026 remains balanced due to ongoing uncertainty in the broader consumer and macroeconomic environment [10][17] Other Important Information - The company reaffirmed its fiscal 2026 guidance, expecting adjusted EBITDA in the range of $110 million to $125 million and adjusted net income between $0.40 and $0.95 per diluted share [16][17] - Customer deposits remained flat year-over-year, which is seen as a positive sign amid the current environment [15][50] Q&A Session Summary Question: What are the assumptions regarding the discounting environment as the selling season progresses? - Management expects the promotional environment to remain active during the winter, with potential improvement in margins as inventory levels normalize in the second half of the fiscal year [21][22] Question: Can you quantify the drivers of the decline in gross margin? - The decline in gross margin is primarily driven by promotional pressures rather than mix, with new boat margins being significantly lower than the previous year [67] Question: How did same-store sales perform throughout the quarter? - Same-store sales were strong throughout the quarter, aided by the Fort Lauderdale Boat Show, with expectations for positive growth in January [68] Question: What is the current state of customer deposits? - Customer deposits have stabilized year-over-year, reflecting solid business trends, particularly in larger products [50] Question: How are the boat shows influencing demand across different segments? - Demand at higher price points has been strong, while the lower end remains challenged, but overall trends indicate a cautious recovery in the premium segment [41][42]