OneWater Marine misses Q2 estimates, cuts outlook as demand weakens

Published 01/05/2025, 12:28
OneWater Marine misses Q2 estimates, cuts outlook as demand weakens

BUFORD, Ga. - OneWater Marine Inc. (NASDAQ:ONEW) reported weaker-than-expected second quarter results and lowered its full-year guidance, sending shares tumbling 6.5% as macroeconomic uncertainty weighs on consumer demand for boats.

The recreational boat retailer posted adjusted earnings per share of $0.13 for the fiscal second quarter, missing analyst estimates of $0.36.

Revenue fell 1% YoY to $484 million, below the consensus forecast of $495.73 million. Same-store sales declined 2%, driven primarily by lower sales in Florida’s West Coast region still recovering from recent hurricanes.

"We are taking a more cautious approach to the selling season given the impact of considerable macroeconomic uncertainty on consumer demand," said CEO Austin Singleton. "Consequently, we are updating our outlook for the remainder of the year."

OneWater now expects fiscal 2025 revenue between $1.7 billion and $1.8 billion, down from its previous outlook and below analyst projections of $1.819 billion.

The company also cut its adjusted EPS guidance to a range of $0.75 to $1.25, compared to the $1.31 consensus estimate.

New boat revenue dropped 5.4% in Q2 as units sold decreased, though pre-owned boat sales rose 14.1%.

Gross profit margin contracted 180 basis points to 22.8%, pressured by the company’s exit from select brands and changes in new boat model mix and pricing.

"As we navigate this difficult environment, we remain focused on executing our strategic priorities, rationalizing our brand portfolio and accelerating cost reduction initiatives to position OneWater for long-term success," Singleton added.

The company’s inventory fell 12% YoY to $602.4 million as it works to align stock levels with softening demand. OneWater ended the quarter with $67.5 million in cash and over $74 million in total liquidity.

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