Investing.com -- Marine retailers in the United States reported softer new boat sales and declining dealer sentiment in April, according to recent dealer checks conducted by Baird.

The survey found that 42% of dealers reported a decline in retail sales compared to 35% that reported increases. One dealer stated that clients are hesitant to move forward with purchases even when offered deals with low or no gross profit. The dealer noted that higher-end boats are selling, but gross profit margins are poor.

Used boat sales showed stronger performance, with 55% of dealers reporting growth and 21% reporting declines. One dealer commented that competitively priced used and brokerage products are selling quickly, while another noted that high new boat prices are driving buyers toward used options.

Inventory concerns increased in April, as 67% of dealers reported new boat inventory was too high, up from roughly half in checks conducted in March and February. For used boats, 60% of dealers reported inventory was too low versus 21% that reported it was too high.

Dealer sentiment on current conditions fell to 33 in April from 36 in March, while the three-to-five-year outlook declined to 45 from 47 in March. Dealers cited lack of manufacturer promotions, fuel costs related to the war with Iran, and tariff uncertainty as factors affecting sales.

Baird noted that affordability, inflation, interest rates, fuel costs and geopolitical risks are weighing on the marine retail environment heading into the prime selling season.