PII - Powerboat sales slip as economic pressures mount - Baird

In an industry update, Baird indicated significant slowdowns in powerboat sales that will likely impact names across the space. The firm’s data indicated that powerboat retail sales fell 18% for the month of May, with year-to-date sales declining 19%. By category, the Ski/Wake data fell 17%, Aluminum Fish sales fell an even larger 25%, and Pontoon sales fell 16%. Additionally, personal watercraft sales slipped 17% from the prior year. “We believe lack of inventory remains a headwind, but amid rising interest rates and fuel prices and declining consumer sentiment, economic concerns are real,” Baird analyst Craig Kennison wrote to clients. “We see good value in the marine space, but we note that valuation is a poor trading signal — and early-cycle investments tend to struggle until economic fears peak.” MasterCraft Boat Holdings (NASDAQ:MCFT) and Malibu Boats (NASDAQ:MBUU) were cited as key stocks to be hit by the slowing sales trends,

For further details see:

Powerboat sales slip as economic pressures mount - Baird