By Will Feuer
Shares of Malibu Boats fell in afternoon trading after the powerboat manufacturer said Jack Springer, its chief executive officer, has agreed to leave the company.
The stock slipped almost 11%, to $42.51, in afternoon trading. Shares are down nearly 32% over the past year.
The company said Springer, who has served as CEO since 2010, would exit on or before May 17. He would also resign from the board upon his departure.
Chairman Michael Hooks has been named executive chair until a new CEO is found. Chief Operating Officer Ritchie Anderson was also elevated to president.
If the company hasn’t named a new CEO before Springer’s departure, an interim office of the CEO, including Anderson and Hooks, will assume the role of CEO.
The company also backed its fiscal-year guidance, including an expected sales decline of a mid- to high-thirties percentage.
The boat sector as a whole is grappling with a steep sales decline, largely because higher interest rates have pushed up the costs of financing a boat. Dealers are sitting on full lots, prompting manufacturers to throttle production and help offer sales incentives.
Last week’s Miami International Boat Show, though, was one positive signal for the industry, B. Riley analyst Eric Wold says.
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