With sales down more than 57% and unit volume plunging 59%, Malibu Boats (NASDAQ:MBUU) swung to a loss in fiscal Q4, driving shares down more than 7% in premarket trading, and setting the stock up for a third consecutive day in the red.
Plagued by high interest rates and lower retail activity, the company’s gross profits were down 88% from a year ago, driving its profit margin to just 7.9% from 27.5% a year ago despite lower cost of sales. The 1,960 basis point drop in the company’s profit margin was attributed to increased promotional costs across all segments, decreased mix of Malibu and Axis models that carry a high gross margin, and fixed-cost leveraging.
On a per share basis, Malibu Boats (MBUU) reported a loss of $0.39 from a profit of $2.98 in the same quarter last year, missing the consensus estimate by 7 cents. Total revenue of $158.7M beat by $1.8M. Adjusted EBITDA also swung to a loss of $4.1M, down 104.5% year-over-year.
For the full fiscal year 2024, Malibu Boats (MBUU) expects net sales to increase by low-single-digits and an adjusted EBITDA margin between 10% and 12%.
“Looking ahead to the next fiscal year, while we expect continued market challenges in the near term, we remain optimistic about the business’s potential in a more normalized market,” CFO Bruce Beckman said. “We remain well-positioned to execute on our foundational strengths, navigating the cycle with our flexible cost structure and positioning ourselves to expand our market share and drive profitable growth for our shareholders,” he added.
