BUFORD, Ga. - OneWater Marine Inc. (NASDAQ: NASDAQ:ONEW), a prominent marine retailer, announced today that its Gulf Coast operations will be affected by Hurricane Helene. The company has initiated emergency procedures at its 26 Gulf Coast locations in anticipation of the storm, which is expected to intensify and make landfall soon. An additional 21 locations across Alabama, Georgia, and South Carolina are also preparing for significant weather and potential flooding over the weekend.
The company has stated that these developments are likely to result in lower sales for September, and it now anticipates its full-year financial results to be at the lower end or slightly below the previously issued guidance. "Our thoughts and prayers are with everyone in the path of Helene," said Austin Singleton, Chief Executive Officer of OneWater. "We are closely monitoring the hurricane and are taking all necessary precautionary measures to ensure the safety of our employees, customers, and communities."
OneWater implemented its Hurricane Disaster Plan earlier this week, which includes safety protocols designed to mitigate losses and protect assets. The company also noted that insurance carriers have stopped writing new policies in certain areas, affecting customers' ability to purchase boat insurance.
While these disruptions are expected to negatively impact fourth-quarter sales, Singleton expressed confidence in the company's ability to recover these sales in the first part of fiscal year 2025 for locations outside the direct path of the storm. "In the meantime, we remain committed to executing our long-term strategy and we are focused on factors within our control to minimize disruption, resuming operations when it is deemed safe," Singleton added.
OneWater Marine operates 97 retail locations, 10 distribution centers/warehouses, and multiple online marketplaces across 20 states, with several locations in top states for marine retail expenditures. The company offers a wide range of products and services, including new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair, and other services.
The information in this article is based on a press release statement from OneWater Marine Inc.
In other recent news, OneWater Marine Inc. reported a decline in fiscal third-quarter earnings for 2024 due to adverse weather conditions in Texas and an overall industry downturn. This led to a 23% sales drop in June and a 15% decrease for the quarter. However, OneWater Marine has observed signs of stability in July sales. The company has adjusted its full-year outlook, projecting mid-single-digit decreases in unit sales and same-store sales.
KeyBanc Capital Markets has maintained its Overweight rating on OneWater Marine, emphasizing the company's robust inventory position and cost-reduction strategies. The firm also highlighted the company's potential for long-term growth driven by mergers and acquisitions, as well as an expansion of its used boat and service segments.
These recent developments have led OneWater Marine to focus its strategy on inventory management, cost optimization, and capital allocation, with an active M&A pipeline. Despite the current challenges, the company's management remains confident in future growth. Analysts from KeyBanc Capital Markets also express optimism for OneWater Marine's potential, particularly towards fiscal year 2025.
InvestingPro Insights
As OneWater Marine Inc. (NASDAQ: ONEW) braces for the impact of Hurricane Helene on its Gulf Coast operations, the company's financial health and stock performance are at the forefront of stakeholders' minds. According to the latest data from InvestingPro, OneWater Marine's market capitalization stands at approximately $374.93 million, reflecting the size of the company within the marine retail industry.
An important metric to consider is the company's Price/Earnings (P/E) ratio, which is currently negative at -3.55, indicating that the company has been unprofitable over the last twelve months. However, looking ahead, analysts predict that OneWater will turn profitable this year, a sentiment that is echoed by the adjusted forward P/E ratio of 10.38, suggesting a more favorable earnings outlook.
Despite the challenges posed by the hurricane, OneWater's gross profit margin remains robust at 25.11%. This indicates that the company has been effective in managing its cost of goods sold and maintaining profitability at the gross level. Nevertheless, it's important to note that the company's revenue has experienced a slight decline of 1.97% over the last twelve months. This could be indicative of broader market challenges or specific operational hurdles the company has faced.
InvestingPro Tips for OneWater highlight some key considerations for investors and analysts following the company. The significant debt burden and the volatility of the stock price are factors that could influence investment decisions, especially in the context of the current emergency situation. Additionally, with five analysts having revised their earnings estimates downwards for the upcoming period, it suggests that there may be concerns about the company's near-term financial performance.
For those interested in a deeper analysis, InvestingPro offers additional tips on OneWater Marine Inc., which can be found at https://www.investing.com/pro/ONEW. These insights could provide a more comprehensive view of the company's financial health and future prospects as it navigates through the challenges posed by Hurricane Helene and beyond.
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