Boat maker Brunswick’s inventories will seemingly be beneath normal for the subsequent few years, CEO David Foulkes informed CNBC’s Jim Cramer on Thursday.
“Raw demand is tremendously strong. What we’re really seeing is constrained supply,” Foulkes stated in an interview on “Mad Money.” (*3*) he added.
Boat gross sales surged final yr through the coronavirus pandemic as folks flocked to outside recreation. That elevated curiosity in boating persevered, evidenced partly by Brunswick’s third-quarter gross sales rising 15.7% yr over yr to $1.43 billion, the company said earlier Thursday.
More proof of that strong demand, in accordance to Foulkes, arrived Wednesday on the Fort Lauderdale International Boat Show in Florida. For the corporate’s Boston Whaler model, “first-day sales were up 50% versus the same show last year,” he stated.
“Even with long wait times, people are really, really keen to get a boat and obviously, we want to get as much of them as we possibly can,” he stated.
Shares of Brunswick rose 3.74% Thursday to shut at $93.80. The inventory is up 23% yr to date, placing Brunswick’s market cap at roughly $7.3 billion.