Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $483.5 million. The company’s full-year revenue guidance of $1.75 billion at the midpoint came in 3.8% below analysts’ estimates. Its non-GAAP profit of $0.13 per share was 61.2% below analysts’ consensus estimates.

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“Our teams executed well in a challenging environment. Same store sales decreased 2%, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton,” commented Austin Singleton, Chief Executive Officer at OneWater.

Company Overview

A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.

With $1.78 billion in revenue over the past 12 months, OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores.

As you can see below, OneWater’s sales grew at an excellent 17.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) despite not opening many new stores.

This quarter, OneWater missed Wall Street’s estimates and reported a rather uninspiring 1% year-on-year revenue decline, generating $483.5 million of revenue.

Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, a deceleration versus the last six years. Still, this projection is above average for the sector and indicates the market is forecasting some success for its newer products.

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Store Performance

Number of Stores

A retailer’s store count influences how much it can sell and how quickly revenue can grow.

OneWater has kept its store count flat over the last two years while other consumer retail businesses have opted for growth.

When a retailer keeps its store footprint steady, it usually means demand is stable and it’s focusing on operational efficiency to increase profitability.

Note that OneWater reports its store count intermittently, so some data points are missing in the chart below.

Same-Store Sales

A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year.

OneWater’s demand has been shrinking over the last two years as its same-store sales have averaged 1.4% annual declines. This performance isn’t ideal, and we’d be concerned if OneWater starts opening new stores to artificially boost revenue growth.

In the latest quarter, OneWater’s same-store sales fell by 2% year on year. This performance was more or less in line with its historical levels.

Key Takeaways from OneWater’s Q1 Results

We struggled to find many positives in these results. Quarterly results missed across the board, and the company lowered full-year guidance. The stock traded down 18% to $12.30 immediately following the results.

OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.