22 March 2024
22 March 2024, Comments Comments Off on Winnebago announces second quarter 2024 results
Winnebago announces second quarter 2024 results

Winnebago Industries, Inc. has issued its financial results for the fiscal 2024 second quarter (ended February 24, 2024) showing total revenues of $703.6 million, a decrease of 18.8% compared to $866.7 million for the comparable fiscal 2023 period, driven by lower unit sales related to market conditions and unfavorable product mix.

Gross profit was $105.3 million, a decrease of 28.3% compared to $146.8 million for the fiscal 2023 period. It recorded a net loss was $12.7 million, compared to net income of $52.8 million in the prior year quarter.

Michael Happe, CEO Commentary:
“Winnebago Industries performed in line with our expectations for the quarter, navigating the effects of ongoing softness in the RV and marine markets,” said President and Chief Executive Officer Michael Happe. “As anticipated, wholesale shipments were constrained in the quarter, as dealers continued to closely manage inventory levels amid a higher interest rate environment and seasonal demand trends. Despite these macroeconomic challenges, we continue to demonstrate resilient profitability and an unwavering commitment to operational discipline that is reflected in the Company’s diversified portfolio of premium brands, investments in new products and technologies, and healthy balance sheet.”

“Purposeful innovation remains a core driver of our growth strategy, delivering customer-centric design and thoughtful, affordable technology to delight customers,” Happe continued.

“In recent months we have introduced new models and features across our motorized and towable RV portfolios, enabling Winnebago, Grand Design RV and Newmar to further enhance our customers’ ability to be great outdoors. On the marine side, Chris-Craft recently launched a special 150th anniversary edition of its iconic Launch 27, while our Barletta brand continues to expand its product reach as the industry’s fastest-growing pontoon business,” Happe concluded.

Revenues for the Towable RV segment were down compared to the prior year, primarily driven by a decline in unit volume related to market conditions and a reduction in average selling price per unit related to product mix and targeted price reductions, partially offset by lower discounts and allowances.

Backlog decreased compared to the prior year due to current market conditions and a cautious dealer network.

Revenues for the Motorhome RV segment were down from the prior year, due to a decline in unit volume related to market conditions, higher levels of discounts and allowances and unfavorable product mix, partially offset by price increases related to higher motorized chassis costs.

Backlog decreased from the prior year due to current market conditions and a cautious dealer network.

“Interest in the RV and boating lifestyles remains strong, creating a secular tailwind that supports the anticipated long-term growth of our portfolio of exceptional brands and aligns with our vision to be the trusted leader in premium outdoor recreation,” Happe said.

“As we enter the second half of fiscal 2024, we are encouraged by data indicating that RV inventory levels are returning to an equilibrium stage, though we remain aggressive in managing production output and overall costs in a targeted manner. Looking ahead, we will continue to rely on our flexible, high-variable cost structure to drive improved operating leverage, while capitalizing on innovation, product line expansion, channel partnerships, and operational excellence to achieve our future mid-cycle organic growth targets.”