Profit drops for RV maker amid ‘challenging’ environment
Elkhart-based Thor Industries Inc. (NYSE: THO) is reporting fiscal second quarter net income of $27 million, down from $266 million in the same quarter the previous year. CEO Bob Martin said the quarter saw a “significant slowdown” in both sales and production.
The recreational vehicle manufacturer recorded $2.3 billion in net sales for Q2, down from $3.9 billion the year prior. Martin said the company used the quarter to balance wholesale production with softening retail sales.
“We expect the successful execution of our aggressive, proactive actions and our variable cost model to position our operating companies and independent dealer partners favorably heading into the second half of our fiscal 2023, which typically experiences stronger retail activity than our second quarter,” Martin said in a news release.
Thor saw a 52% reduction in RV shipments during Q2.
Martin said demand in the short term will continue to be influenced by macroeconomic conditions, however the company believes the softening in demand will be temporary.
“We remain encouraged with the continued level of consumer interest for the RV lifestyle,” he said. “We are experiencing a strong spring retail show season across the country with high attendance figures and solid retail activity. In addition, digital traffic across RV related sites remains well above pre-pandemic levels, reinforcing our long-term optimism for the industry and for Thor.”
Despite the drop in profit and sales, Martin said the company generated positive cash flow and maintained its strong liquidity profile, allowing the company to operate from a position of financial strength heading into the second half of the fiscal year.
You can view the full earnings report by clicking here.