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Business Wire
31-07-2025
- Business
- Business Wire
OneWater Marine Inc. Announces Fiscal Third Quarter Results
BUFORD, Ga.--(BUSINESS WIRE)--OneWater Marine Inc. (NASDAQ: ONEW) ('OneWater' or the 'Company') today announced results for its fiscal third quarter ended June 30, 2025. 'The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins,' commented Austin Singleton, Chief Executive Officer at OneWater. 'Our focus on serving our customers, executing our strategy, and taking market share remains unwavering. We continue to position the business for long-term success through a disciplined and thoughtful approach to inventory management, which includes strategic brand exits that are progressing as planned. By staying focused on factors within our control, we remain well-equipped to navigate this dynamic environment and drive results.' Fiscal Third Quarter 2025 Results Revenue for fiscal third quarter 2025 was $552.9 million, an increase of 1.9% compared to $542.4 million in fiscal third quarter 2024. Same-store sales increased 2%. New boat revenue decreased 2.1%, driven by a decrease in units sold, partially offset by an increase in average price per unit. Pre-owned boat revenue increased 17.8%, driven by the increase in units sold and average price per unit. Finance & insurance income remained flat as a percentage of total boat sales, and service, parts & other sales were down 1.7% compared to the prior year quarter. Dealership service, parts, and other sales increased in the quarter while Distribution segment sales were lower due to reduced production by boat manufacturers. Gross profit totaled $128.7 million for fiscal third quarter 2025, down $3.9 million from $132.6 million for fiscal third quarter 2024. Gross profit margin of 23.3% decreased 110 basis points compared to the prior year period, driven by new boat model mix and pricing on continuing brands, and the impact of select brands the Company is exiting. Fiscal third quarter 2025 selling, general and administrative expenses totaled $92.1 million, or 16.7% of revenue, compared to $87.1 million, or 16.0% of revenue, in fiscal third quarter 2024. The increase in selling, general and administrative expenses as a percentage of revenue was driven by increased expenses to drive our same-store sales results and inflationary costs related to administrative and fixed expenses. Net income for fiscal third quarter 2025 totaled $10.7 million, compared to net income of $16.7 million in fiscal third quarter 2024. The Company reported net income per diluted share for fiscal third quarter 2025 of $0.65, compared to net income per diluted share of $0.99 in 2024. Adjusted diluted earnings per share 1 for fiscal third quarter 2025 was $0.79, compared to adjusted diluted earnings per share 1 of $1.05 in 2024. Fiscal third quarter 2025 Adjusted EBITDA 1 decreased to $32.8 million compared to $39.2 million for fiscal third quarter 2024. As of June 30, 2025, the Company's cash and cash equivalents balance was $70.1 million and total liquidity, including cash and availability under credit facilities, was in excess of $85.0 million. Total inventory as of June 30, 2025, decreased 13.6% to $517.1 million, compared to $598.6 million on June 30, 2024, primarily driven by the Company's inventory management. Total long-term debt as of June 30, 2025 was $419.5 million, and adjusted long-term net debt (net of $70.1 million cash) 1 was 5.8 times trailing twelve-month Adjusted EBITDA 1. Fiscal Year 2025 Guidance The Company is updating its previously issued fiscal full year 2025 outlook. For fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.80 billion to $1.85 billion and dealership same-store sales to be up low single digits. Adjusted EBITDA 2 is expected to be in the range of $65 million to $80 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $0.50 to $0.75. Conference Call and Webcast OneWater will host a conference call to discuss its fiscal third quarter earnings on Thursday, July 31st, at 8:30 am Eastern time. To access the conference call via phone, participants can dial (+1) 646 564 2877 or (+1) 800 549 8228 (North America Toll Free). Alternatively, a live webcast of the conference call can be accessed through the 'Events' section of the Company's website at where it will be archived for one year. A telephonic replay will also be available through August 7th, 2025 by dialing (+1) 646 517 3975 (US), (+1) 289 819 1325 (Canada), or (+1) 888 660 6264 (North America Toll Free), and entering access code 25911 #. See reconciliation of Non-GAAP financial measures below. See reconciliation of Non-GAAP financial measures below for a discussion of why reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort. Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Revenues: New boat $ 326,134 $ 333,162 $ 883,631 $ 901,552 Pre-owned boat 125,941 106,889 272,467 238,820 Finance & insurance income 17,782 17,932 42,185 40,022 Service, parts & other 83,007 84,458 213,916 214,381 Total revenues 552,864 542,441 1,412,199 1,394,775 Gross profit New boat 51,950 56,722 139,109 161,483 Pre-owned boat 22,535 22,263 49,602 50,065 Finance & insurance 17,782 17,932 42,185 40,022 Service, parts & other 36,396 35,688 92,232 92,840 Total gross profit 128,663 132,605 323,128 344,410 Selling, general and administrative expenses 92,138 87,059 258,989 253,169 Depreciation and amortization 5,593 5,091 16,426 14,185 Transaction costs 175 242 1,111 966 Change in fair value of contingent consideration 144 214 452 3,918 Restructuring and impairment 234 — 1,473 11,847 Income from operations 30,379 39,999 44,677 60,325 Other expense (income): Interest expense – floor plan 7,340 9,290 21,870 25,627 Interest expense – other 9,041 9,008 27,129 27,352 Other (income) expense, net (224 ) (1,357 ) 853 889 Total other expense, net 16,157 16,941 49,852 53,868 Net income (loss) before income tax expense (benefit) 14,222 23,058 (5,175 ) 6,457 Income tax expense (benefit) 3,507 6,344 (1,903 ) 2,222 Net income (loss) 10,715 16,714 (3,272 ) 4,235 Net (income) attributable to non-controlling interests — — — (119 ) Net (income) loss attributable to non-controlling interests of One Water Marine Holdings, LLC — (2,031 ) 1,648 (572 ) Net income (loss) attributable to OneWater Marine Inc. $ 10,715 $ 14,683 $ (1,624 ) $ 3,544 Net earnings (loss) per share of Class A common stock – basic $ 0.66 $ 1.01 $ (0.10 ) $ 0.24 Net earnings (loss) per share of Class A common stock – diluted $ 0.65 $ 0.99 $ (0.10 ) $ 0.24 Basic weighted-average shares of Class A common stock outstanding 16,313 14,593 15,700 14,571 Diluted weighted-average shares of Class A common stock outstanding 16,444 14,891 15,700 14,835 Expand ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 Net income (loss) attributable to OneWater Marine Inc. $ 10,715 $ 14,683 $ (1,624 ) $ 3,544 Transaction costs 175 242 1,111 966 Intangible amortization 2,167 2,086 6,437 5,743 Change in fair value of contingent consideration 144 214 452 3,918 Restructuring and impairment 727 — 3,013 11,847 Other (income) expense, net (224 ) (1,357 ) 853 889 Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) — (107 ) (568 ) (2,103 ) Adjustments to income tax expense (2) (687 ) (248 ) (2,599 ) (4,890 ) Adjusted net income attributable to OneWater Marine Inc. 13,017 15,513 7,075 19,914 Net income (loss) per share of Class A common stock - diluted $ 0.65 $ 0.99 $ (0.10 ) $ 0.24 Transaction costs 0.01 0.02 0.07 0.07 Intangible amortization 0.13 0.15 0.41 0.39 Change in fair value of contingent consideration 0.01 0.01 0.03 0.26 Restructuring and impairment 0.04 — 0.19 0.80 Other (income) expense, net (0.01 ) (0.09 ) 0.05 0.06 Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) — (0.01 ) (0.04 ) (0.14 ) Adjustments to income tax expense (2) (0.04 ) (0.02 ) (0.17 ) (0.33 ) Adjustment for dilutive shares (3) — — 0.01 — Adjusted earnings per share of Class A common stock - diluted $ 0.79 $ 1.05 $ 0.45 $ 1.35 (1) Represents an allocation of the impact of reconciling items to our non-controlling interest. (2) Represents an adjustment of all reconciling items at an estimated effective tax rate. (3) Represents an adjustment for shares that are anti-dilutive for GAAP earnings per share but are dilutive for adjusted earnings per share. Expand Three Months Ended June 30, Trailing twelve months ended June 30, 2025 2024 2025 Net income (loss) $ 10,715 $ 16,714 $ (13,683 ) Interest expense – other 9,041 9,008 36,827 Income tax expense (benefit) 3,507 6,344 (4,282 ) Depreciation and amortization 6,301 5,785 24,441 Stock-based compensation 2,459 2,256 8,235 Change in fair value of contingent consideration 144 214 782 Transaction costs 175 242 1,675 Restructuring and impairment 727 — 6,484 Other (income) expense, net (224 ) (1,357 ) (22 ) Adjusted EBITDA $ 32,845 $ 39,206 $ 60,457 Long-term debt (including current portion) $ 419,467 Less: cash (70,146 ) Adjusted long-term net debt $ Pro forma adjusted net debt leverage ratio 5.8 x Expand About OneWater Marine Inc. OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 97 retail locations, 9 distribution centers / warehouses and multiple online marketplaces in 19 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair and other services. Non-GAAP Financial Measures and Key Performance Indicators This press release and our related earnings call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income (Loss) Attributable to OneWater Marine Inc., Adjusted Diluted Earnings (Loss) Per Share and Adjusted Long-Term Net Debt, as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of the Company's ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Because our non-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non-GAAP forward-looking measures, including Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share guidance, to their corresponding GAAP measures due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to change in fair value of contingent consideration and transaction costs. Change in fair value of contingent consideration and transaction costs are affected by the acquisition, integration and post-acquisition performance of our acquirees which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share are not available without unreasonable effort. Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before interest expense – other, income tax (benefit) expense, depreciation and amortization and other (income) expense, further adjusted to eliminate the effects of items such as the change in fair value of contingent consideration, restructuring and impairment, stock-based compensation and transaction costs. See reconciliation above. Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, income tax (benefit) expense, restructuring and impairment, stock-based compensation and transaction costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share We define Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. as Net (Loss) Income Attributable to OneWater Marine Inc. before transaction costs, intangible amortization, change in fair value of contingent consideration, restructuring and impairment and other expense (income), all of which are then adjusted for an allocation to the non-controlling interest of OneWater Marine Holdings, LLC. Each of these adjustments are subsequently adjusted for income tax at an estimated effective tax rate. Management also reports Adjusted Diluted (Loss) Earnings Per Share which presents all of the adjustments to Net (Loss) Income Attributable to OneWater Marine Inc. noted above on a per share basis. See reconciliation above. Our board of directors, management team and lenders use Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of unusual or one time charges and other items (such as the change in fair value of contingent consideration, intangible amortization, restructuring and impairment, transaction costs and other expense (income)) that impact the comparability of financial results from period to period. We present these metrics because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance. Adjusted Long-Term Net Debt We define Adjusted Long-Term Net Debt as long-term debt (including current portion) less cash. We consider, and we believe certain investors and analysts consider, adjusted long-term net debt, as well as adjusted long-term net debt divided by trailing twelve-month Adjusted EBITDA, to be an indicator of our financial leverage. Same-Store Sales We define same-store sales as sales from our Dealership segment, excluding new and acquired stores. New and acquired stores become eligible for inclusion in the comparable store base at the end of the store's thirteenth month of operations under our ownership and revenues are only included for identical months in the same-store base periods. Stores relocated within an existing market remain in the comparable store base for all periods. Additionally, amounts related to closed or sold stores are excluded from each comparative base period. We use same-store sales to assess the organic growth of our Dealership segment revenue. We believe that our assessment on a same-store basis represents an important indicator of comparative financial results and provides relevant information to assess our performance. Cautionary Statement Concerning Forward-Looking Statements This press release and statements made during the above referenced conference call may contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'will be,' 'will likely result,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'would,' 'foresees,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential,' 'outlook' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: changes in demand for our products and services, the seasonality and volatility of the boat industry, effects of industry wide supply chain challenges including a heightened inflationary environment and our ability to maintain adequate inventory, fluctuation in interest rates, adverse weather events, our acquisition and business strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, effects of a global public health concern on the Company's business, geopolitical risks, including the imposition of or changes in tariffs, duties, or other taxes affecting international trade, risks related to the ability to realize the anticipated benefits of any proposed acquisitions, including the risk that proposed acquisitions will not be integrated successfully, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and in our subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from OneWater Marine's website at under the 'Investors' tab, and in other documents OneWater Marine files with the SEC. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
Yahoo
23-06-2025
- Automotive
- Yahoo
Q1 Earnings Outperformers: OneWater (NASDAQ:ONEW) And The Rest Of The Automotive and Marine Retail Stocks
Let's dig into the relative performance of OneWater (NASDAQ:ONEW) and its peers as we unravel the now-completed Q1 automotive and marine retail earnings season. At their essence, cars and boats get you from point A to point B, but the former is usually a necessity in everyday life while the latter is a luxury or leisure product. The retailers that sell these vehicles therefore cater to different needs and populations. There are also retailers that may not sell cars and boats themselves but the parts and accessories needed to keep these complex machines in tip top shape. The 11 automotive and marine retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.4%. Luckily, automotive and marine retail stocks have performed well with share prices up 11.8% on average since the latest earnings results. A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. OneWater reported revenues of $483.5 million, flat year on year. This print fell short of analysts' expectations by 2.8%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts' expectations. 'Our teams executed well in a challenging environment. Same store sales decreased 2%, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton,' commented Austin Singleton, Chief Executive Officer at OneWater. OneWater delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is down 7.7% since reporting and currently trades at $13.84. Read our full report on OneWater here, it's free. With a strong presence in the Southern and Central US, America's Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers. America's Car-Mart reported revenues of $370.2 million, up 1.9% year on year, outperforming analysts' expectations by 7.8%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The market seems unhappy with the results as the stock is down 11% since reporting. It currently trades at $51.41. Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it's free. Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes. Monro reported revenues of $295 million, down 4.9% year on year, exceeding analysts' expectations by 1.3%. Still, it was a softer quarter as it posted a significant miss of analysts' EBITDA and gross margin estimates. Interestingly, the stock is up 11.9% since the results and currently trades at $14.28. Read our full analysis of Monro's results here. Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids. Genuine Parts reported revenues of $5.87 billion, up 1.4% year on year. This result surpassed analysts' expectations by 0.5%. Overall, it was a strong quarter as it also produced a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' gross margin estimates. The stock is up 7.1% since reporting and currently trades at $119.77. Read our full, actionable report on Genuine Parts here, it's free. Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products. MarineMax reported revenues of $631.5 million, up 8.3% year on year. This number topped analysts' expectations by 8.8%. It was a strong quarter as it also logged an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates. MarineMax scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 31.2% since reporting and currently trades at $25.25. Read our full, actionable report on MarineMax here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
OneWater (NASDAQ:ONEW) Misses Q1 Revenue Estimates, Stock Drops 18%
Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $483.5 million. The company's full-year revenue guidance of $1.75 billion at the midpoint came in 3.8% below analysts' estimates. Its non-GAAP profit of $0.13 per share was 61.2% below analysts' consensus estimates. Is now the time to buy OneWater? Find out in our full research report. Revenue: $483.5 million vs analyst estimates of $497.5 million (flat year on year, 2.8% miss) Adjusted EPS: $0.13 vs analyst expectations of $0.34 (61.2% miss) Adjusted EBITDA: $17.86 million vs analyst estimates of $23.3 million (3.7% margin, 23.4% miss) The company dropped its revenue guidance for the full year to $1.75 billion at the midpoint from $1.78 billion, a 1.4% decrease Management lowered its full-year Adjusted EPS guidance to $1 at the midpoint, a 33.3% decrease EBITDA guidance for the full year is $80 million at the midpoint, below analyst estimates of $88.97 million Operating Margin: 3.4%, in line with the same quarter last year Same-Store Sales fell 2% year on year (-5% in the same quarter last year) Market Capitalization: $240.6 million 'Our teams executed well in a challenging environment. Same store sales decreased 2%, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton,' commented Austin Singleton, Chief Executive Officer at OneWater. A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. With $1.78 billion in revenue over the past 12 months, OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, OneWater's sales grew at an excellent 17.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) despite not opening many new stores. This quarter, OneWater missed Wall Street's estimates and reported a rather uninspiring 1% year-on-year revenue decline, generating $483.5 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, a deceleration versus the last six years. Still, this projection is above average for the sector and indicates the market is forecasting some success for its newer products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. A retailer's store count influences how much it can sell and how quickly revenue can grow. OneWater has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. Note that OneWater reports its store count intermittently, so some data points are missing in the chart below. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. OneWater's demand has been shrinking over the last two years as its same-store sales have averaged 1.4% annual declines. This performance isn't ideal, and we'd be concerned if OneWater starts opening new stores to artificially boost revenue growth. In the latest quarter, OneWater's same-store sales fell by 2% year on year. This performance was more or less in line with its historical levels. We struggled to find many positives in these results. Quarterly results missed across the board, and the company lowered full-year guidance. The stock traded down 18% to $12.30 immediately following the results. OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
