Boat maker Brunswick's inventories will likely be below normal for the next few years, CEO David Foulkes told CNBC's Jim Cramer on Thursday.
"Raw demand is tremendously strong. What we're really seeing is constrained supply," Foulkes said in an interview on "Mad Money." "Even though we're increasing capacity, because field inventories are so low ... it's probably going to be three years before we really get field inventory levels back to where they should be," he added.
Boat sales surged last year during the coronavirus pandemic as people flocked to outdoor recreation. That elevated interest in boating persisted, evidenced partly by Brunswick's third-quarter sales rising 15.7% year over year to $1.43 billion, the company said earlier Thursday.
More evidence of that robust demand, according to Foulkes, arrived Wednesday at the Fort Lauderdale International Boat Show in Florida. For the company's Boston Whaler brand, "first-day sales were up 50% versus the same show last year," he said.
"Even with long wait times, people are really, really keen to get a boat and obviously, we want to get as much of them as we possibly can," he said.
Shares of Brunswick rose 3.74% Thursday to close at $93.80. The stock is up 23% year to date, putting Brunswick's market cap at roughly $7.3 billion.
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