BMO Capital on U.S. boat registrations: macroeconomic conditions continue to pressure retail demand

BMO Capital Markets analyst preliminary data from Statistical Surveys shows U.S. boat retail registrations declined 10% year-over-year in July, compared to a prior -3% comparison period. The July data is based on reporting from 37 states, representing approximately 74% of the market.

In the main powerboat segment, excluding personal watercraft, sailboats, and houseboats, registrations also fell 10% year-over-year. June retail data was revised to flat from a previously reported -2%.

Boat dealers MarineMax (NYSE: HZO) and OneWater Marine (NASDAQ: ONEW) both noted on recent earnings calls that macroeconomic conditions continue to pressure retail demand, while premium boat sales have shown relative resilience. MarineMax noted that industry channel inventory levels are improving, though promotional activity, while moderating, remains elevated as dealers work to right-size inventory. OneWater indicated that industry inventory levels, particularly within the premium segment, have improved.

New dealer inventory tracked through Boat Trader as a proxy was up 4% year-over-year at the end of July.

On a brand basis in July, Winnebago Industries (NYSE: WGO) and Polaris (NYSE: PII) brands gained market share, while Brunswick Corporation (NYSE: BC) brands lost share, according to the analyst note.

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