Retail Trends and Guidance
Q: What's causing the disconnect between your flat sales and your biggest customer cutting guidance?
A: Our internal retail is essentially flat year-to-date, including early April. " We believe we're gaining market share, up about 50 basis points. " Sales of our premium product lines, like Sea Ray and Whaler, have been strong. " We can't speak for our customers, but we see our products performing well. "

Wholesale Orders and Outlook
Q: How do you view visibility into second-quarter vs. back-half wholesale orders?
A: Retailers are cautious about holding more current model year inventory before the changeover in June. " We have less visibility for value products but strong orders for our premium products into Q3. "

Pricing and Promotions
Q: Why not be more aggressive with discounts to support dealers and move prior-year models?
A: We're providing increased discounting compared to the prior year but as planned. " We're targeting promotions to specific product lines and segments that require support, while our premium products don't need significant discounting. "

Managing Costs Amid Headwinds
Q: How are you managing costs to offset absorption headwinds from cautious wholesale orders?
A: We've taken out $11 million of operating expenses compared to last year. " All business units are contributing, and we're focused on keeping gross margins strong. "

Credit Environment Impact
Q: Have you seen changes in credit availability or customer creditworthiness?
A: We're seeing more people with high credit scores returning to the market and financing. " Credit tightening hasn't been significant; it's been relatively stable over the past six months. "

Guidance and FX Impact
Q: Given the caution and FX headwinds, was there consideration to lowering the full-year guide?
A: No, we believe our $7 to $8 EPS guidance provides adequate space. " We offset FX headwinds with tax rate benefits and increased share repurchases. "

Freedom Boat Club Growth
Q: Are you seeing a shift from buyers to Freedom Boat Club members, and will growth remain mid-single digits?
A: We're delighted with Freedom's performance, including mid-single-digit same-club sales growth. " We haven't observed a significant shift from buyers to members, but Freedom continues to expand domestically and internationally. "

Inventory Levels
Q: What are your weeks on hand or pipeline levels, and expectations for year-end?
A: Weeks on hand are currently around 36, and we expect about 37 by year-end. "

Interest Rate Expectations
Q: Do you have internal expectations for interest rate movements this year?
A: Our expectations change over time, and we don't have specific insights to share. "

Engine Retail Performance
Q: Engine retail is down 9%; how does this track against your expectations?
A: This performance is in line with our initial expectations. " We're confident in our ability to outperform the market and continue gaining share, especially in 150-horsepower and greater categories. "

Addressing Affordability
Q: What are you doing to address affordability in your product lines?
A: We can adjust base content and offer a broad product line, from boats selling at $1,000 to over $1 million. " We might introduce lower base content or new models to make boats more affordable. "

Model Year Changeover Timing
Q: When will model year '25 products be introduced, and will you have an advantage?
A: We expect to introduce new models early in June. " Most in the industry will do the same, so we don't anticipate a significant advantage. "

Atlantic Speed Limit Proposal
Q: Do you have technological solutions for the Atlantic speed limit proposal?
A: We've been promoting existing and potential technological solutions. " The proposed rule is an overreach and ineffective; technology like AIS systems and sonar can be more effective. "

Q2 Guidance and Back-Half Weighting
Q: The Q2 guide is below the Street; are you assuming more back-half weighting?
A: Yes, factors like FX play a role, and we believe the back half provides a better comparison due to last year's destocking. "

Production Rates and Orders
Q: Over the next six weeks, what are you monitoring closely?
A: We'll be looking at order rates from OEM customers, production rates, and inventory levels. " The timing of the inflection in demand is key. "

Parts and Accessories Demand
Q: With parts sell-in down 3%, what's happening at retail for boats and RVs?
A: Retail demand remains solid. " The decline reflects dealers stocking less inventory because products are readily available. "

Affordability Measures
Q: Do you think pricing needs to adjust to drive unit growth?
A: We don't believe transaction prices are the main lever right now. " Promotions and discounting are already improving affordability, especially for value products. "

Marine Industry Outlook
Q: With the marine industry down 10% in Q1, what's needed for retail to turn positive?
A: Good weather and clarity in the macro environment would help. " Our promotions and new product investments are aimed at driving sales. "

How Managing Macroeconomic Factors
Q: How are you managing potential macroeconomic headwinds?
A: We're focused on cost control, product innovation, and maintaining balanced inventory levels. "

Credit Tightening
Q: Have you seen any tightening in retail credit?
A: Credit conditions are relatively stable, and we haven't seen significant tightening. "