LCII - Winnebago falls after RV and motorhome sales plummet in FQ3

2023-06-21 07:45:20 ET

Winnebago ( NYSE: WGO ) fell in early trading on Wednesday after posting a mixed FQ3 earnings report.

The Minnesota-based company reported revenue fell 38% year-over-year during the quarter due to lower unit sales related to RV retail market conditions, as well as higher discounts and allowances compared to last year. Winnebago ( WGO ) pointed to "challenging" market conditions.

Revenue fell 52% in the the Towable RV segment to $384.1M, primarily driven by a decline in unit volume associated with retail market conditions and higher discounts and allowances from a year ago. Revenue was off 27.5% in the Motorhome RV segment, due primarily to a decline in unit volume and higher discounts and allowances compared to last year, partially offset by price increases related to higher chassis costs. Revenue in the marine segment was up 1.9% to $129M.

Gross profit margin decreased 190 basis points to 16.8%, driven by deleverage and higher discounts and allowances. Operating income came in at $80.5M vs. $176.7M last year.

On the balance sheet, Winnebago ( WGO ) ended the quarter with total outstanding debt of $591.7M and working capital of $574.7M. Cash flow from operations was $139.6M in the quarter.

CEO outlook: "Looking ahead, we will continue to actively manage production levels across our business to match dealer appetite for our brands, ongoing seasonal retail conditions, and our market share aspirations. We are entering our fourth and final quarter of Fiscal 2023 with a strong balance sheet, having completed multiple inorganic and organic investments in support of future growth strategies and a sequentially improved inventory and working capital position. We are closely tracking and adjusting to market conditions, with a focus on maintaining solid profitability, market competitiveness, and a preferred lot position for our premium brands with our channel partners."

Shares of Winnebago ( WGO ) fell 3.63% premarket. Camping World ( CWH ) fell 0.88% in the early session. Thor Industries ( THO ), LCI Industries ( LCII ), and Patrick Industries ( PATK ) are on watch.

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