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BC's Freedom Boat Club Expands South Florida Operations
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Brunswick Corporation's (BC - Free Report) Freedom Boat Club (FBC), the world’s largest boat club network, acquired the South Florida franchise operations and territory. The acquisition adds 13 corporate locations from Pompano Beach to Stuart, FL, accelerating the company’s growth and expanding its corporate presence along the Southeast Florida coastline. Brunswick’s shares moved up 4.4% during trading hours on Sept. 13, 2024.
Situated near Freedom Boat Club's existing corporate locations in Fort Lauderdale, Miami, and Islamorada, the acquisition enhances its operational efficiencies. This is one of the company's largest additions, covering Broward, Palm Beach, and Martin counties. It intends to build on the strong foundation laid by the former franchise owner while continuing to provide outstanding experiences for its members.
The addition of the South Florida franchise offers a key opportunity to accelerate growth in a year-round boating region while also leveraging synergies with Brunswick's family of brands.
FBC Expansion Drives BC’s Growth
Brunswick Corporation leads the marine recreation industry with innovations that enhance water experiences. The company's Boat segment includes the Brunswick Boat Group, which manufactures and distributes recreational boats, and Business Acceleration. Brunswick significantly expanded FBC since acquiring it in 2019, growing from 170 to more than 415 locations across North America, Europe and Australia.
During second-quarter 2024, the Boat segment delivered steady results despite planned reductions in wholesale orders. Channel partners remain cautious with their orders, but the impact of modest model-year pricing and share gains offset some of the softness.
FBC contributed about 10% to the Boat segment's revenues and experienced steady membership growth despite macroeconomic uncertainty. The club also expanded with two new flagship locations in Denmark and the UK and recorded 200,000 member trips during the quarter. Discounting and promotional activities remain high, especially for prior model year products, to boost retail sales. Investments in digital platforms continue to benefit the company, with nearly 40% of FBC membership sales in the quarter being digitally assisted.
BC’s Price Performance
Image Source: Zacks Investment Research
Shares of Brunswick have increased 5.9% in the past three months compared with the industry's 6.3% rise. The company is likely to benefit from new model introductions and marketing and promotional activities. Also, the emphasis on expansion bodes well.
Continued slower retail sales and higher discounting and carrying costs are a concern. Owing to these headwinds, the company expects full-year unit retail sales to decline by approximately 10% compared with the original forecast of flat sales.
Zacks Rank & Key Picks
Brunswick currently carries a Zacks Rank #5 (Strong Sell).
RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has gained 75.1% in the past year. The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) indicates growth of 18.1% and 71.1%, respectively, from the year-ago levels.
DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently sports a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has increased 41.8% in the past year.
The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently sports a Zacks Rank of 1. NCLH has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has moved up 12.9% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.8% and 125.7%, respectively, from the year-ago levels.
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BC's Freedom Boat Club Expands South Florida Operations
Brunswick Corporation's (BC - Free Report) Freedom Boat Club (FBC), the world’s largest boat club network, acquired the South Florida franchise operations and territory. The acquisition adds 13 corporate locations from Pompano Beach to Stuart, FL, accelerating the company’s growth and expanding its corporate presence along the Southeast Florida coastline. Brunswick’s shares moved up 4.4% during trading hours on Sept. 13, 2024.
Situated near Freedom Boat Club's existing corporate locations in Fort Lauderdale, Miami, and Islamorada, the acquisition enhances its operational efficiencies. This is one of the company's largest additions, covering Broward, Palm Beach, and Martin counties. It intends to build on the strong foundation laid by the former franchise owner while continuing to provide outstanding experiences for its members.
The addition of the South Florida franchise offers a key opportunity to accelerate growth in a year-round boating region while also leveraging synergies with Brunswick's family of brands.
FBC Expansion Drives BC’s Growth
Brunswick Corporation leads the marine recreation industry with innovations that enhance water experiences. The company's Boat segment includes the Brunswick Boat Group, which manufactures and distributes recreational boats, and Business Acceleration. Brunswick significantly expanded FBC since acquiring it in 2019, growing from 170 to more than 415 locations across North America, Europe and Australia.
During second-quarter 2024, the Boat segment delivered steady results despite planned reductions in wholesale orders. Channel partners remain cautious with their orders, but the impact of modest model-year pricing and share gains offset some of the softness.
FBC contributed about 10% to the Boat segment's revenues and experienced steady membership growth despite macroeconomic uncertainty. The club also expanded with two new flagship locations in Denmark and the UK and recorded 200,000 member trips during the quarter. Discounting and promotional activities remain high, especially for prior model year products, to boost retail sales. Investments in digital platforms continue to benefit the company, with nearly 40% of FBC membership sales in the quarter being digitally assisted.
BC’s Price Performance
Image Source: Zacks Investment Research
Shares of Brunswick have increased 5.9% in the past three months compared with the industry's 6.3% rise. The company is likely to benefit from new model introductions and marketing and promotional activities. Also, the emphasis on expansion bodes well.
Continued slower retail sales and higher discounting and carrying costs are a concern. Owing to these headwinds, the company expects full-year unit retail sales to decline by approximately 10% compared with the original forecast of flat sales.
Zacks Rank & Key Picks
Brunswick currently carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks from the Consumer Discretionary sector.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has gained 75.1% in the past year. The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) indicates growth of 18.1% and 71.1%, respectively, from the year-ago levels.
DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently sports a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has increased 41.8% in the past year.
The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently sports a Zacks Rank of 1. NCLH has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has moved up 12.9% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.8% and 125.7%, respectively, from the year-ago levels.