How do you see uh Malibu Boots after you
spent a year there and as we come to
like an inflection point maybe for for
rates? Is that important to you?
>> Yeah, rates are important important to
us. I see Malibu boats in a good
position, Matt. Honestly, um you know,
as we are, you know, looking at the
market and the consumer is is, you know,
still struggling a little bit with the
elevated rates and so on. We're in a
good position. We have capacity. We've
invested in our capacity over the last
few years. We have new models. We have
11 new models coming out in model year
26. We're excited about that. Got a
great team. Uh uh really really, you
know, top line of our dealer network.
So, we're in great position for when
there's a little bit more consumer
confidence. There's a little bit more uh
stability as as Dave's kind of uh you
know, snapshot there gave. It's kind of
more of the same for 26, at least the
start of our fiscal 26, uh, before the
consumer really revs up and, uh, and
starts getting back to the full-blown,
you know, buying new boats.
>> Talk to us about the mix because, as I
said, you dominate, um, wakeboard
towing. We're looking at some sweet
video of that here, but we also saw some
big, you know, uh, outboard fishing
boats and I know you have stern drive,
uh, business as well. Where where else
do you want to take market share?
>> Yeah, we we play in in a lot of
different categories at the premium
level. So, when you look at our our, you
know, our saltwater fish categories with
Pursuit, Cobia, uh, Pathfinder, those
brands play at the premium level. We've
been taking share in those brands. We've
had new boats introduced in those
brands. We actually just introduced our
Pursued S388, which is a phenomenal
boat. uh been able to spend some time on
on the ocean with that boat and uh you
know we're excited about where that
going. our co where that's going our
cobalt line is another big lake boat but
also foraying into the saltwater uh fish
area as well and uh we're we're gaining
share in our stern drives and then in in
in the toeboat segment we've been the
you know the category leader for a long
time and that really takes the
innovation that we're committed to and
the continual pursuit of making a great
toeboat
>> because you have um because you play in
kind of the luxury or the high-end
segment I I'm sure that most of your
ownership is through individuals uh
purchase boats. But I wonder about the
growing category of boat sharing these
clubs that people are hearing more and
more about. Is that a growth avenue for
you?
>> That is a growth avenue for us. We do
participate in the in the boat club, you
know, it's kind of called the boat club
markets. Uh we supply boats to the boat
club markets and it's a great way for
families to enjoy time on the water and
uh you know we're we're a good uh good
supplier to that type of business.
>> How how does the consumer look to you
Steve as we um you know get closer to
rate cuts obviously if rates come down
that's going to make it easier more
affordable for people to to buy into the
uh to the boating uh hobby. Um, is the
consumer strong right now? Because we
worry a little bit about the labor
market.
>> Yeah, the uh uh you know early you know
the PCE that just came in this morning,
right? Continue the inflation's a little
bit up still. Uh the consumer is strong.
Their balance sheets are strong. They
need it's the consumer confidence in you
know where the where the you know econ
where the economy is going. Um you know
interest rates are still a little
elevated in in our space. you know,
we're uh you know, we're excited if the
rate cuts happen. There's been a lot of
rumors and promises about rate cuts, but
we actually have to see them. But I
think once we start to see them, the
consumer confidence will come back. The
desire of being on the water, being out
with your family and friends and, you
know, being outside, you know, doing
activities behind the boat has not died.
It's just we're looking for that desire
to turn into demand a little stronger
than what we've seen. And I think we're
back in in in that growth mode again.
What what about uh the tariff situation?
I mean, you were at Indian before this
and I believe at Malibu Boats, you're
just as much of an American
manufacturer. So, does it hurt you at
all or is it maybe even a tailwind?
>> Um tariffs for us are still still there.
It's about 150 to 300 basis points of of
cost of sales that we'll we'll have to
incur. Uh but we're doing everything we
can with, you know, looking at our our
efficiency of engineering, our
efficiency of manufacturing, working
with our suppliers to make sure that we
can, you know, mitigate passing much of
that on to the consumer. So, we're we're
working every day to to to bite into
that tariff, but we're not as impacted
as tariffs. Like you said, we're
predominantly a US manufacturer and we
predominantly uh get our supply chain is
is North Americanbased. So, uh, but it's
about that 150 300 basis points impact
on our business.
>> What's the seasonality like? It strikes
me that you you're the last two
businesses you've run, um, probably a
lot more popular in the summer months,
spring and fall as well, but less so in
winter. Um, what's your revenue stream
look like when it gets cold out?
>> Yeah, when it gets cold out, we do take
the dip. Uh, but think about how we're
we're uh positioned. You know, we do a
lot of business in the saltwater market.
So, it's boating year round, you know,
when you think about the saltwater
markets. But yes, you know, because we
sell to big lakes, you know, riverways
and so on. Uh, you know, you know, we're
affected in that, you know, off season,
so to speak, as we as we enter Q3 and Q4
of the calendar year. We slow down a
little bit. Q1 and Q2 is a stronger
period of the calendar as we head to
boat shows and actual the beginning of
the boating season up north. But you're
we're year- round boating in the