Malibu Boats, Inc. (NASDAQ: MBUU) reported mixed second-quarter financial results on Tuesday, with adjusted earnings of 57 cents per share, beating market estimates, but quarterly sales falling short of expectations at $211.07 million compared to the anticipated $219.70 million, as reported by Benzinga Pro.

Jack Springer, Chief Executive Officer of Malibu Boats, Inc., attributed the impact on second-quarter results to weak retail demand. He emphasized the need to recalibrate wholesale production to align with retail demand due to elevated inventory levels resulting from seasonality and continued interest rate pressures. Despite the current macroeconomic outlook, positive signs are emerging, evident from the Year End Sales event for Malibu, reflecting the resiliency of their brands. The upcoming boat show season is anticipated to indicate retail recovery and continued consumer interest in their larger, feature-rich boats.

Following the announcement, Malibu Boats shares tumbled 18.6% to close at $41.56 on Tuesday.

Keybanc adjusted their price target on Malibu Boats from $58 to $50 while maintaining an Overweight rating. Similarly, Raymond James reduced Malibu Boats’ price target from $59 to $46, sustaining an Outperform rating.

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