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MarineMax, Inc. HZO reported first-quarter fiscal 2025 results, wherein the top line lagged the Zacks Consensus Estimate but the bottom line surpassed the same. Both revenues and earnings decreased from the year-ago quarter.
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Quarterly revenues and same-store sales were impacted by a soft retail environment and disruptions from Hurricanes Helene and Milton, leading to lower revenues and higher inventory than expected.
However, the company’s margin profile strengthened through acquisitions and organic growth, enhancing its resilience. Moreover, expense-reduction initiatives, including the closure or divestiture of three locations, remain key to maintaining profitability and strengthening operations in fiscal 2025. HZO shares have gained 14.2% in the past month compared with the industry’s 3.3% growth.
MarineMax, Inc. Price, Consensus and EPS Surprise
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More on MarineMax’s Q1 Results
HZO reported adjusted earnings of 17 cents per share, beating the Zacks Consensus Estimate of an adjusted loss of 26 cents. However, the bottom line decreased from adjusted earnings of 19 cents in the year-ago period.
Net sales of $468.5 million missed the consensus estimate of $484 million. Also, the top line dipped 11.2% from the year-ago quarter. This decrease was primarily led by reduced boat sales and disruptions caused by Hurricanes Helene and Milton. Consequently, comparable sales (comps) fell 11% year over year.
Net sales of retail operations and product manufacturing declined 10.6% and 17.8% year over year to $468.4 million and $37.9 million, respectively. The Zacks Consensus Estimate for net sales for the retail operations and product manufacturing segments was pegged at $494 million and $30.6 million, respectively, in the fiscal first quarter.
HZO Stock Past-Month Performance
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Insight Into HZO’s Margins & Expenses
Gross profit declined 3.3% in the first quarter to $169.7 million from $175.5 million in the prior-year period. Despite the decrease in consolidated sales, the gross margin rose 290 basis points year over year to 36.2%. This improvement was driven by the current promotional environment, changes in the sales mix, and increased contributions from the company's higher-margin businesses.
Adjusted selling, general and administrative (SG&A) expenses declined 1.5% to $149.4 million from $151.7 million in the same period of fiscal 2024. As a percentage of net sales, adjusted SG&A expenses increased 310 basis points year over year to 31.9%.
This Zacks Rank #3 (Hold) company reported an adjusted EBITDA of $26.1 million, down 2.2% from an adjusted EBITDA of $26.6 million in the year-ago quarter. We note that the adjusted EBITDA margin was 5.6%, up 50 basis points year over year.