As market indices across the country flooded with red ink, one stock rode 6% higher yesterday.
Not because of a buyout offer. That's Kyphon
That's the question we're here to answer, and it's a bit of a humdinger, seeing as most of the numbers MarineMax reported were of the negative variety:
- Same-store sales? Down 9%.
- Total sales? Down 10%.
- Profits? Like I just said, those were down 19%, despite being buoyed by a $0.03 gain for hocking the corporate jet, $0.02 more from an insurance payout, and $0.18 more from a favorable tax settlement.
Aside from that, Mrs. Lincoln, how was the play?
Actually, the play was pretty much a tragedy all around. According to CEO William McGill: "The past 12 months has been a challenging period for our industry, with retail unit percentage declines in the mid-teens, based on industry reports," and MarineMax has "not been immune to the challenges facing our industry." (For more details on said "challenges," cast your eyes further up the product pipeline and check out Marine Products'
That last point is most important. As rival businesses get torpedoed by the soft selling environment, McGill aims to grab market share from the weaker players. The theory is that every submarine must eventually come up for air, and that the currently underwater boating industry is no different. Once the boating business revives, big players like MarineMax will profit most from the turnaround.
For more Foolishness on the industry, read:
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