Baird: October Powerboat Sales See 22% Gain
Editor’s Note: Following the release of the boating retail report from Statistical Surveys Inc., the investment firm of Robert W. Baird & Co. distributed a routine advisory note to its investors. Highlights of that note follow.
October powerboat retail bounces. U.S. powerboat retail jumped 22% in October, according to Statistical Surveys. October typically represents 4% of annual sales. Stronger growth continues in lower-priced areas of the market, with aluminum powerboats and fiberglass outboard (both +25%) drive the increase. Through October, retailers are on pace to sell 156,000 powerboats in 2012 (+12%).
• U.S. powerboat retail up 22% in October. U.S. powerboat retail jumped 22% in October — the most robust growth in over six months. The month of October falls in the offseason for boat sales, and accounts for 4% of the annual market. U.S. powerboat retail remains up 12% YTD in 2012.
• Smaller fares better. Smaller boats continue to perform better than larger boats, consistent with our expectations. Notably, sales of 14-30 foot fiberglass sterndrive units grew 18% following several months of declines. We believe consumers have more equity (or less negative equity) in smaller boats, driving better trade-in activity.
• Sandy destruction. Early assessments indicate as many as 65,000 boats were damaged in the wake of Hurricane Sandy, one of the most destructive storms on record.
To subscribe to this and other Baird reports, contact Craig R. Kennison at firstname.lastname@example.org.