Spader dealer boat sales up 18 percent through June
The average Spader dealer reported total dealership sales were up by 13.2 percent for the first six months of the year ending June 30, according to the latest report from Spader Business Management.
New boat sales were up by 18.8 percent for the first half of the year, continuing more than six straight months of positive growth for the department. After declining 40 percent year-over-year in January, used boat sales climbed back in June, recording 6.2 percent growth during the first half of the year.
Sales across all departments were up, with unit sales and P&A sales up 13.2 and 14.9 percent, respectively, for the average Spader dealer.
The average dealer wasn’t reporting better margins, however, with the average gross margin on new boats even with 2011 and used margins down slightly. The decline in used boat gross margins was hard to understand, according to Spader, considering the limited supply of good used boats.
Net operating profits as a percent of sales grew 1.4 percentage points through the end of June, a gain of 32.6 percent, to 5.7 percent for the first half of the year. This is compared to a net Operating Profit of 4.3 percent in 2011.
Inventories were up through the end of June, with the average Spader dealer reporting new boat inventories were 20.1 percent higher through June compared to the same period of 2011. Used inventory was down 15.1 percent; however, despite this total inventory was up by 13.1 percent.
As sales grew this year, so did spending; all expense categories were up for the first six months of the year by just over 7 percent. Personnel expenses grew the most, up by almost 9 percent compared to 2011, while other variable expenses were up by more than 7 percent. Advertising and floor plan interest were both up around 2 percent.