The party may be over for boat and outboard dealers. Brunswick Corp. had second quarter net sales of $1.44 billion, a decline of 15.2% compared with $1.7 billion in the prior-year quarter, per the company report. The company attributed the decrease to lower dealer orders and higher discounts in certain segments.

Operating earnings were down year-over-year due to the impact of lower net sales and higher manufacturing costs related to lower production.

“With high interest rates continuing to pressure consumer budgets and suppress discretionary spending, the introduction of new model year products at the beginning of the important month of June did not catalyze boat purchases as we had anticipated, and our second quarter results were slightly below expectations,” says CEO David Foulkes.

“Continued slower retail sales, combined with higher levels of discounting and carrying costs, have increased pressure on dealer and channel profit margins resulting in ongoing conservative wholesale ordering patterns, which, in turn, is causing OEMs to maintain lower boat production rates through the main selling season, impacting propulsion and Navico Group OEM orders,” he added.