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DATE
Thursday, July 24, 2025 at 10 a.m. ET
CALL PARTICIPANTS
Chief Executive Officer and President — Brett McGill
Chief Financial Officer — Mike McLamb
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RISKS
Gross profit margin on boats fell to near historic lows in Q3 FY2025, with management stating, "Gross margins on boats are about as low as we've seen outside the financial crisis."
Same-store sales decreased by 9%, attributed to heightened consumer caution and a challenging retail environment.
The Manufacturing segment incurred a non-cash goodwill impairment charge exceeding $69 million (GAAP), reflecting macroeconomic uncertainty and reduced market capitalization.
Management sharply lowered full-year FY2025 adjusted EPS and adjusted EBITDA guidance: Adjusted net income is now projected at $0.45 to $0.95 per diluted share for FY2025 and Adjusted EBITDA is expected to be $105 million to $120 million for FY2025.
TAKEAWAYS
Total Revenue: $657 million in revenue for Q3 FY2025, which fell below internal expectations due to lower new boat sales and heightened consumer caution.
Same-Store Sales: Same-store sales were down 9%, with segment unit volumes falling in-line or worse, but outperformed overall industry trends.
Gross Margin: Remained above 30% at the consolidated level, sustained by higher-margin segments such as finance and insurance, superyacht services, storage, and marina operations, despite severe margin pressure on new boats.
Adjusted SG&A Expense: Declined about 4% for the quarter and nearly $11 million year to date, supported by cost reductions including closing more than 10 locations since last year.
Goodwill Impairment: Recorded a non-cash goodwill impairment charge exceeding $69 million within the Manufacturing segment due to current macroeconomic challenges (GAAP).
Adjusted Net Income: Adjusted net income was $11 million, or $0.49 per diluted share, compared to $34.8 million, or $1.51 per diluted share, in the prior year.
Adjusted EBITDA: $35.5 million in the third quarter, versus $70.4 million in the same period last year.
Cash Position: $151 million in cash and equivalents at period end, with inventories up $26 million year over year, mainly due to soft June sales.
Share Repurchases: Approximately 5% of outstanding stock has been repurchased so far in FY2025.
Updated Fiscal 2025 Guidance: Adjusted net income is now expected at $0.45 to $0.95 per diluted share for FY2025; Adjusted EBITDA is revised to $105 million to $120 million for FY2025.
Industry Inventory Outlook: Lenders forecast supply normalization in upcoming quarters may ease current margin pressure.
IGY Savannah Harbor: New 100-berth marina opened in Downtown Savannah, with notable capacity for superyachts.
Wynn Al Marjan Island Marina: IGY selected as manager for this major United Arab Emirates development, responsible for design guidance and operations.
New Model Launches: Intrepid and Cruisers to launch a record number of new models within the next twelve months, with several debuting imminently.
July Trading Outlook: Management anticipates July will "finish ahead of last year's July," marking improved sales momentum versus prior months.
SUMMARY
The call revealed a challenging quarter, highlighted by significant margin compression in new boat sales and a 9% same-store sales decline as consumer demand stalled. Management addressed a large non-cash impairment in the Manufacturing segment (GAAP) and sharply reduced full-year FY2025 adjusted earnings guidance, citing persistent inventory and margin headwinds. Strategy remains focused on expense control, accelerated growth in high-margin services, and operational discipline, while July trends indicate a possible, though uncertain, inflection in demand patterns.
Management emphasized, "Our focus remains on disciplined execution, investing in higher-margin businesses, and positioning MarineMax to accelerate sales and increase profitability when the market stabilizes."
Inflationary pressures and industry-wide inventory surpluses contributed to prolonged promotional activity and margin erosion, with relief expected only as industry supply realigns with demand.
Discussion of the Florida market detailed the lingering effects of prior hurricanes, with recovery hampered by infrastructure and housing rebuild delays continuing to impact regional performance.
Executives described a "divergence" between robust consumer engagement with boating and the deferral of new boat purchases, suggesting pent-up demand could eventually support a retail rebound when macroeconomic uncertainty subsides.
INDUSTRY GLOSSARY
IGY: Island Global Yachting, MarineMax’s superyacht marina and services platform focused on luxury marina operations and management.
Same-store sales: Comparative sales growth metric for locations operated for at least one full prior year, used to assess underlying revenue performance excluding new and closed locations.
Adjusted SG&A: Selling, general, and administrative expenses after non-recurring and certain discretionary items are excluded, providing insight into core operating expense trends.
Goodwill impairment: Non-cash accounting charge reflecting a reduction in the carrying value of intangible assets when business value falls below acquisition cost, not affecting cash flow.
Intrepid: MarineMax’s wholly owned boat manufacturing subsidiary specializing in high-performance sport boats.
Cruisers: MarineMax’s subsidiary focused on manufacturing luxury yachts and cruisers.
NewCoast Financial: MarineMax’s captive finance and insurance operations division.
Full Conference Call Transcript
Brett McGill: Hosting today's call are Brett McGill, MarineMax's Chief Executive Officer and President, and Mike McLamb, the company's Chief Financial Officer. Brett will begin the call by discussing MarineMax's operating performance and recent highlights, Mike will review the financial results, Brett will make some concluding comments, and then management will be happy to take your questions. The earnings release and supplemental presentation associated with today's announcement can be found at investor.marinemax.com. With that, I'll turn the call over to Mike. Mike?
Mike McLamb: Thank you, Scott. Good morning, everyone, and thank you for joining this call. I'd like to start by reminding you that certain of our comments are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of today. These statements involve risks and uncertainties that could cause results to differ materially from expectations. These risks include, but are not limited to, the impact of seasonality and weather, global economic conditions and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our Form 10-Ks and other filings with the Securities and Exchange Commission.
Also on today's call, we will make comments referring to non-GAAP financial measures. We believe that the inclusion of these financial measures helps investors gain a meaningful understanding of the changes in the company's core operating results. These measures can also help investors who wish to make comparisons between MarineMax and other companies on both a GAAP and a non-GAAP basis. The reconciliation to non-GAAP financial measures to the most directly comparable GAAP measures is available in today's earnings release. With that, let me turn the call over to Brett. Brett?
Brett McGill: Thank you, Mike, and good morning, everyone, and thank you for joining us today to discuss our Q3 results. Let me begin by recognizing and thanking our team for their commitment to customers during what was a challenging quarter. Though the numbers reflect a tough environment, their dedication to a world-class customer experience has never wavered. Our consistently strong net promoter scores, commitment to the customer experience, and business diversity reinforce my confidence that we will successfully navigate this period and emerge even stronger. As noted in this morning's earnings release, a combination of ongoing economic uncertainty, evolving trade policies, and heightened geopolitical tensions contributed to soft retail demand across the recreational industry in Q3.
While these headwinds have existed to a degree throughout the fiscal year, we saw a noticeable increase in consumer caution since April. While enthusiasm for the boating lifestyle remains high, the uncertainty is prompting buyers to delay purchases until the economic outlook is clearer. The premium boat segment has generally shown more resilience than other parts of the retail boat market, though it still faced significant unit declines this quarter due to broader economic concerns. Despite these challenges, our teams remain focused on executing our strategic priorities, managing costs, and maintaining operational discipline. We continue to invest in digital tools and customer experience enhancements to position MarineMax for long-term success.
Reflecting the challenging retail environment, third-quarter revenue came in less than our expectations at $657 million with same-store sales down high single digits. With new boat margins hovering near historic lows, gross profit margin decreased from the prior year. However, thanks to the continued strong performance of our higher-margin businesses, including finance and insurance, superyacht services, storage, and marina operations, including IGY, we maintained a gross margin above 30%. This resilience demonstrates our effective business mix and operational discipline, which enabled us to deliver solid results even in a challenging environment. On the expense line, we are seeing the continued benefits of cost-cutting initiatives implemented during the fiscal year.
That being said, inflation persists, so we continue to look for ways to improve our cost structure. Despite the inflation, adjusted SG&A was down nearly $11 million on a year-to-date basis. Regarding tariffs, tariff-related uncertainty has remained a headwind for the broader consumer environment. That said, we've continued to manage the evolving landscape effectively, thanks in part to solid coordination with our premium manufacturing partners and proactive inventory planning earlier in the year.
Mike McLamb: The degree to which that stability continues will be dependent upon subsequent trade policy decisions and tariff agreements. While we are optimistic that together with our manufacturing partners, we will continue to find solutions, tariff-related volatility impacting consumer confidence is likely to further influence retail activity. Looking ahead, we are encouraged by early signs that the environment may be stabilizing. Manufacturers in the industry are being appropriately promotional and adjusting production to help align inventory with the retail environment. Lenders are forecasting that industry inventory may drop in the coming quarters to realign with past averages. This will provide some relief to the margin pressure that exists today.
Our focus remains on disciplined execution, investing in higher-margin businesses, and positioning MarineMax to accelerate sales and increase profitability when the market stabilizes. Turning to recent highlights. During the quarter, IGY celebrated the opening of the IGY Savannah Harbor Marina, a new 100-berth marina in the heart of Downtown Savannah. Additionally, the state-of-the-art marina features a large dock specifically engineered to accommodate superyachts. Earlier this month, IGY also announced that they have been selected as the marina manager for the Wynn Al Marjan Island Marina in Ras Al Khaimah, UAE. IGY will advise Wynn Resorts on marina design and development, then oversee marina management and marketing once the marina is operational.
Intrepid and Cruisers will both be launching a record number of new models within the next twelve months, of which several will debut in the coming months. Additionally, NewCoast Financial, our finance and insurance operation, continues to see growth through the use of technology and expanded partnerships. We also recently completed the development of a marina adjacent to our retail operation in Stuart, Florida. It is a profit-winning strategy when you can combine a well-run dealership with a state-of-the-art marina, especially in a growing market like Stuart. And so with that update, let me turn the call over to Mike for the financial review. Mike?
Mike McLamb: Thank you, Brett. I also want to express my appreciation to our team for their dedication and resilience in the face of a challenging market environment. Turning to our results, total revenue decreased in the quarter to $657 million, which as Brett noted was primarily a function of lower new boat sales resulting from increased consumer caution. Same-store sales were down 9%. Depending on the segment, our unit volume for the quarter was down similar to our same-store sales decline or greater, although better than the industry as a whole, but reflecting the broad retail softness. As expected, margins remained under pressure in Q3 as we intensified our promotional activity in an effort to drive sales.
Gross margins on boats are about as low as we've seen outside the financial crisis. Fortunately, our focus to expand our higher-margin businesses again enabled our consolidated gross margin to remain above 30%. On the expense side, adjusted selling, general and administrative expenses for the quarter decreased about 4%. Our cost reduction initiatives, which have included closing over 10 locations since last year, have helped reduce expenses. However, we continue to face rising costs in several areas offsetting a portion of the savings. We are actively reviewing all opportunities to improve efficiency and reduce expenses. Interest expense decreased primarily due to lower rates.
As noted in our earnings release, our GAAP net loss for the quarter included a non-cash goodwill impairment charge of just over $69 million associated with our Manufacturing segment. This charge is a required accounting adjustment that primarily reflects the effect of the current macroeconomic uncertainty on our market capitalization in combination with the tougher environment. It does not reflect any change in our long-term outlook for the manufacturing business. Adjusted net income, which excludes the goodwill impairment, as well as other discrete expenses identified in our earnings release, was $11 million or $0.49 per diluted share for the quarter compared with $34.8 million or $1.51 per diluted share last year.
Third-quarter adjusted EBITDA was $35.5 million versus $70.4 million last year. Turning to the balance sheet, cash and cash equivalents were $151 million at quarter-end. Inventories increased year over year by approximately $26 million primarily due to the softer than expected June quarter. Customer deposits decreased as a result of the timing of large yacht orders and deliveries, and more readily available product as well as the softer retail environment. Our net debt to adjusted EBITDA was under 2x at quarter-end. Turning to capital allocation. During the quarter, we bought back additional shares of our stock under our share repurchase plan. Through the fiscal year, we have repurchased roughly 5% of our outstanding stock.
We also continue to invest in growth initiatives such as the IGY Savannah Harbor and our Stuart Marina expansion as well as improvements in our operations. And we remain committed to maintaining a healthy balance sheet. Turning to guidance. Given our results through the first nine months of fiscal 2025, and the heightened level of macroeconomic uncertainty, which hit seasonally critical June especially hard, we are revising our full-year guidance. We now expect fiscal year 2025 adjusted net income in the range of $0.45 to $0.95 per diluted share and fiscal year 2025 adjusted EBITDA in the range of $105 million to $120 million.
These expectations did not consider or give effect for, among other things, material acquisitions that we may complete or other unforeseen events, including changes in global economic conditions. As a reminder, EPS gets impacted greater than adjusted EBITDA given the size and nature of depreciation, amortization, and stock-based compensation. Our outlook assumes that September will face challenges similar to June with higher than expected inventory levels across the industry continuing to pressure margins. We'll remain aggressive on pricing to drive sales and reduce inventory through the quarter. Before I turn the call over to Brett, I will comment on July trends.
With our aggressive actions, July is expected to finish ahead of last year's July, certainly is a nice turn from a rather challenging June. Now let me turn the call over to Brett for closing comments. Brett?
Brett McGill: Thank you, Mike. While our near-term outlook is cautious due to the ongoing economic uncertainty, we are confident that our overarching strategy centered on expanding our higher-margin businesses will drive operational resilience. Our management team has successfully guided the company through many challenging economic cycles. As the recovery takes hold, we believe that our earnings power is significantly enhanced by the strategic expansion of our higher-margin businesses and the resilient consumer demand for the boating lifestyle. With that, Mike and I will be happy to take your questions. So operator, please open up the line for the Q&A.
Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. We ask that you limit to one question and one follow-up. For participants using speaker equipment, it may be to pick up your handset before pressing the star key. Your first question comes from James Hardiman with Citi. Please go ahead.
James Hardiman: Hey, good morning. Thanks for taking my call. So I was all I was ready to ask the question about why you know, you guys talk a lot about saw the drop off in April. Surrounding all the trade issues. Obviously, the stock market has rebounded pretty nicely. Consumer confidence maybe a little better, not dramatically so, but you know, certain segments of the economy appeared to have bounced off of those April lows. I was gonna ask why you're not really seeing any improvement certainly, if it's a it's a trade issue. But then, Mike, you mentioned that things are now expected to be up in July. So I guess I'll start there.
What do you think is different about sort of the various factors impacting the consumer as we think about July? Is it high-quality sales, i.e., like, are there are promotions higher in July and maybe it's sort of maybe not as impressive of a turnaround as it as it sounds? Obviously, weather was a big factor earlier in the quarter. Really know how to think about that in the context of your business. But, you know, basically, walk us through sort of how you think about where the consumer is and if this July improvement is the start of something or maybe just an outlier?
Mike McLamb: I'll take a stab. It's the $64 question, if you will, or a $164 question as to what's caused the consumer to pause and, in, you know, post-liberation day. But, clearly, they did. Obviously, consumer confidence dropped a lot after that as did know, some of the economic outlooks for the country. Know, that's all published data. It's better now, to your point, Consumer confidence is coming back up. There you think about the big buckets of uncertainty, and, again, this is stuff that's been you know, published. You had the all the terror, the tariff headlines, You had the global tensions that were pretty high in the June, especially in The Middle East.
You had a lot of discussion around the tax law. Was it be passed? What was gonna be in it? What's not gonna be in it? Tax law is now passed, which is good. That was July 4 I remember right. You can argue that maybe the global tensions are a little bit less now. People would argue either way on that. You could also, for sure, you mentioned weather, and we're probably less susceptible to weather than some people in the industry. But, it does seem like weather did begin to improve, later than normal for, you know, much of our market markets in the Midwest and Northeast. So it's kind of a combination of all that.
Clearly, there's a lot of wealth right now. So people have the money to buy what they wanna buy. But not just boats. It's boats. There's a lot of other more expensive discretionary items have been impacted right now. So And, James, I would add that, you know, April when you go back to that quarter, you kinda say, well, what's the difference? So July looks like it's gonna be up. April was dramatically down. I mean, the Liberation Day was a cliff. It was down Just kept you couldn't get couldn't get the month back. May actually had a little bit of you know, had a little bit of good signs in there.
And then June, you know, good signs, you couldn't make up what you lost in April, and then June just never really got going. You know, ended up down. But you so not only did you not make up what you lost in April. The difference here is know, July starts off You know, there's signals out there in the economy. There's tariff announcements every day that can kinda be positive. But there's not this cliff effect that we kinda had in April. So that's encouraging that you're not trying to dig out of a massive hole created in almost two weeks. That's a good point.
James Hardiman: All great points. And then as we think about moving forward, I don't know. Can the July I mean, how should we be thinking about same-store sales for the for the fourth quarter? Could they possibly be up And then don't know, as we think about you know, next year, I all the uncertainty of this year, I almost hesitate to ask a question about next year. But any Okay. Any sort of early thoughts There's some things hopefully that you can control, maybe SG&A, how to think about that. But as we think about fiscal '26, any initial guideposts?
Mike McLamb: I'll comment first on the first part of that question, which was really Q4. I think in my prepared remarks, I was alluding to was we're expecting the September to be challenging, similar to the June. Maybe not quite as soft perhaps because we are up against the negative comp in the, September. Know, because of the hurricanes last year. You asked, you know, is it possible that same-store sales will be positive? I can tell you our team is working like heck to make it positive. And, so, yes, it's possible, but that's not what we're we factored into our guidance. So we think it's prudent to think it probably will be down.
In the setup for 2026, you know, if we can get a little bit of favorable wins is good. When you think about our ability to drive margin up, if we get the inventory you know, leveled down, And, So there's some there's some good setup for what '26 could look like, but it's it's too your guess is good of mine on what's really gonna happen in the macro. The expectation, at least, obviously, those who are in the industry have this expectation. But even folks who watch the industry are that in this industry inventory levels will bottom.
It was supposed to happen as of June 30, but because of the weak June quarter, that's now gonna be pushed out a quarter or maybe two quarters or sometime into the into the fall. Once that bottoms to Brett's point, you have some margin relief for the industry, obviously, for us and also for the industry. And then once the industry bottoms and in theory, you start having some growth levels coming off of that with the wealth that's being created out there. I the one thing I wanna I don't wanna lose sight of, is the demand for the boating lifestyle. Brett said it. I probably said it.
I boat whenever I can, and you see the people out there. There's a ton of folks enjoying their boats. There's a ton of people at our events. Our know, gallons sold at our marinas are up. There's a lot of data that says, people are enjoying it and they wanna be in it. They're just pausing the purchase decision right now. So that's that's a big important point is that it's a healthy environment, meaning it's a healthy lifestyle, and people wanna be part of it, which is something I wanna say of.
James Hardiman: That's all really good color. Good luck, guys. Thanks.
Mike McLamb: Thank you. Thank you, James.
Operator: Next question, Joe Altobello with Raymond James. Please go ahead.
Joe Altobello: Thanks. Hey, guys. Good morning. I wanted to follow-up on July in terms of the promotional environment. I mean, sounds like things got a little bit better here this month. How much of that was promotion driven? How much of that was you know, deals on leftover model year twenty-fives, for example?
Mike McLamb: We're pretty promotional, but we were pretty promotional. So it may be a sign that perhaps the consumer may be feeling a little bit I don't know, Brett. It doesn't seem like we're doing a whole lot different right now in July other than we're working hard, and maybe the consumer's feeling a little bit better. Yeah. It's not a know, obviously, we work hard to pull any lever we can in the business to drive sales, and we are. But I don't I wouldn't wouldn't put anything on any extra promotion that was material enough to tell you that made a difference in July.
Joe Altobello: Got it. Okay. And just and just to follow-up on that, I mean, given the promotional environment, and I think you mentioned that it's it's as bad as it's been since the financial crisis. What has the change for that to get better? I mean, obviously, demand improvement would help. But, like, is that being driven by just excess inventories, or are there other factors involved?
Mike McLamb: Inventories, you know, being up drives, it makes a little bit more a buyer's market. But I just the uncertainty out there, people you know, whether they're a plumbing company, a construction company that has you know, workers that are in fact, affected by the immigration issues going on out there. To tariff uncertainty for them. They're just sitting The promotional activity is only thing that can kinda get them off the couch to say, okay. I guess maybe I should buy now instead of waiting until there's some settle you know, things settle down in my business.
Joe Altobello: Got it. Okay. Thank you.
Mike McLamb: Thank you, Joe.
Operator: Next question, Eric Wold with Texas Capital. Please go ahead.
Eric Wold: Hey. Thanks. Good morning. Good morning. Quick question. I apologize. I was I kinda dropped off a bit during the to James' beginning. It's not sure how you addressed this, but you mentioned that you're encouraged by kind of the OEMs, you know, adjusting production to retail activity. Know we've kind of heard that kind of almost repeatedly for a number of quarters.
Is that kind of just a continual adjustment, or are you seeing them kind of make any kind of kind of kinda extra moves to really kinda try to get ahead of what's happening now to really drive inventories lower and kind of maybe take an extra step to kind of get ahead of where consumers are and kinda really cut inventories lower to maybe get ahead of where we are gonna we're gonna eliminate the move that to promote extra heavy kind of ahead of next, next year's voting hue. I think the industry is very responsible, and they really the builders don't want too much inventory in the channel. Obviously, the dealers don't want too much inventory.
The bank who finance the industry don't want too much inventory. Everybody has the same goal in mind. What's what's so tough is the June is so critical to the industry. I mean, for some people, it's 60, 70% of their sales. It's so important that when the June falls, you know, 16% in fiberglass sales in April and 20% in May and June's not out yet, but it's gonna be in that same range as what we're what we believe. People weren't forecasting on that big of a decline in the June. So you have to level set and reset your thoughts 2026, which is what the manufacturers are doing. You gotta bring down production accordingly.
And you gotta step it down, which the industry is working to do. But I think the important thing is I think everybody has the right goal in mind, which is to keep inventories in check. Not overbuild, which will help with the promotion environment. It will help with margins. It's just people didn't expect this big of a drop in the most important quarter seasonally in the industry.
Eric Wold: Got it. And just a quick follow-up. Any update on kinda what you're seeing out of the Florida market kind of a couple quarters past the hurricanes or that market coming back kind of maybe relative to the other market in the country?
Mike McLamb: Yeah. Eric, great question. It was something I was talking we've been talking about here this quarter more than, probably the certain areas within Florida are still not recovered from the hurricane and probably more so than maybe we kind realized, you know, as you get around and you visit places, heck, our Sarasota store, is still operating out of a mobile trailer and you know, we're, doing what we can and so many people's homes haven't been rebuilt. So it's it's actually gone on longer. Here we are coming up on hurricane season for this year. And we're still not recovered from that probably had more of an impact than, I think, everyone thought.
The bigger the issue, Brett alluded to it, but it's the amount of docs that are still damaged You see them when you boat or when you drive around. And the and the docks aren't repaired because the people are still waiting on something on their home and or they were ready for their dock, there's just not that many dock builders. Out there. So it's it's lasted longer because of the amount of flooding that happened here.
Eric Wold: Got it. Thank you both.
Mike McLamb: Thank you, Eric.
Operator: Next question, Anna Glaessgen with B. Riley. Please go ahead.
Anna Glaessgen: I'd like to ask a bigger picture question. You spoke to maybe inventory recalibration maybe being pushed out a quarter or two, but as you think about the broader recovery in boat retail, has your view shifted in light of the uncertainty over the past few months? Thanks.
Mike McLamb: Yeah. Go ahead. Yes. No. I don't I don't think our broader view has shifted at all. We you know, I just mentioned a minute ago about the strength of the demand for the boating lifestyle and the interest in it. So, that's real positive. I think we're in a in a in a tough period. We were in a tough period prior to Liberation Day. I mean, it was tough. We were doing you know, fantastic in a tough environment. And then the uncertainty came with liberation. That doesn't change our long term.
And I think, you know, speaking to the inventory recalibration, you know, us working really closely with our manufacturers early on in our fiscal year to get things aligned You know, we had a good plan, and then the June is a soft as it was for our industry. And so there's gonna be a continued recalibration there to get it in line with the best forecast we can give. It doesn't change our entire broad broader you know, aspect of things, but that June being down is gonna take adjustments on manufacturing. And us. To move through it.
Anna Glaessgen: Got it. And then just a follow-up on July. I know I know it's still pretty early, but anything interesting you're hearing from those consumers that are responsible for that pickup? You know, are they more responsive to promotions? Just kind of over the headlines of about tariffs and just looking to get on the water. Any health care would be great.
Mike McLamb: Great. Yeah. There's nothing material in the promotional activity that's that's you know, gotten helped us there. I mean, there is something, I'm sure, that effort and focus you know, driving out some aged products of course, helps. And I'll I'll I'll comment too. You know, new models that manufacturers, we sometimes get stuck in all these other metrics, but when people see a new model from a brand come out with new innovation, that's that's continues to sell. And so that's that's probably a little bit of it there. But it's just, you know, like I said, when the June never really recovered from those first couple weeks of April, You know?
Probably helping the July doesn't have that cliff effect in there.
Anna Glaessgen: Great. Thanks, guys.
Mike McLamb: Thanks, Anna.
Operator: Next question, Michael Albanese with The Benchmark Company. Please proceed.
Michael Albanese: Yeah. Hey, guys. Thanks for taking my I just wanted to ask, I guess, I'm looking for some historical context in a sense, but you mentioned, you know, I guess, strong engagement, lifestyle putting activity. All, you know, fairly resilient. Have you seen such a divergence in the past between kind of stable boating activity and just the lack of new boat sales? You know, I can I imagine, obviously, I wasn't covering the industry in '08, '09? That's boating activity declined along with sales. So I'm just curious if you can comment on that.
Mike McLamb: That's a great point. It's probably Mike can comment, but, you know, you're right. There was a people still went voting, but it was a lot less and closer to home and not spending as much money on fuel back in the financial crisis that is. But this is definitely a divergence. I mean, people are out there. They're using their boats. So, yeah, that's that's a little new to us. Probably seen a little bit of it before. It's I mean, the financial crisis is was, you know, so much different than what this is financial crisis. There's you know, you remember how many people got laid off. They had to sell their boats, all that kind of stuff.
That's not what this environment is. This is just a know, fair amount of uncertainty being thrown at the potential buyers and potential people who are gonna trade up the customers that they're delaying. So I don't know if we've really seen it before. It looks like it is now. The inflationary pressures over the years too are clearly having an impact. You know, the average price of a boat you know, now versus, you know, pre-COVID, we'll call it. Those are dramatic differences clearly put a gap between when somebody bought a boat and when they're ready to buy their next boat.
Michael Albanese: Yeah. So the I guess the thought being there that, you know, the typical, I don't know, upgrade replacement cycle has kind of been pushed out or it's elongated. I mean, how do you think about there being pent-up demand at consumer gets unlocked? Maybe we were looking out to 2026 or, you know, 2027 at this point, but I mean, how are you thinking about pent-up demand forming given that divergence?
Mike McLamb: It's real because we, you know, we yes. It does. When we talk to customers at both shows or in our showroom, just interactions personally with people I know in the market that are boaters and want new boats, there's just some delay in there saying, hey. I'm gonna do that next year. You know, it's there. They're just waiting to see how things play out. So there is a pent-up demand. I'd be careful how strong I say that. But it's it's there. There is a pause in the buyers. And you know, the excuses range from, yeah, that bodes so much more, you know, And some of us just, hey.
I wanna wait and see what happens in my business, see what happens with tariffs. Mhmm. In my business, it's not so much tariffs and the cost of your boat. It's Yeah. How's it affect what I'm doing in my world?
Michael Albanese: Got it. That's great color. I appreciate it, guys.
Mike McLamb: Thank you, Mike.
Operator: Thank you. I will now turn the call back to Mr. McGill for closing comments.
Brett McGill: Well, thank you, everybody, for joining us today. Some really great Thanks for your interest in MarineMax, and, we'll update you on our next call.
Operator: This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.