LCI Industries ( NYSE: LCII ) shares slumped on Tuesday after a big miss on bottom line expectations.
For the fourth quarter, the Indiana-based RV manufacturer reported a $0.68 per share loss, $0.30 wider than anticipated. Meanwhile, a 26.1% decline in revenue from the prior year to $894.3M came in $18.16M below the Street consensus. RV OEM net sales slipped 40% year over year, driven by a nearly 47% drop in North American industry wholesale shipments.
“Though we faced headwinds, primarily in the fourth quarter as OEMs implemented production shutdowns, the diversification of our businesses and actions to flex staffing helped mitigate the impact on earnings,” CEO Jason Lippert said. “We expect these efforts will limit margin pressure as we move through 2023, but we did incur severance-related and inventory reserve costs in the fourth quarter. Despite persistent macroeconomic headwinds, we remain confident for the future as millions of campers continue to enjoy the outdoor lifestyle.”
For the month of January, however, sales have remained well below the prior year. Management said that net sales for the month were approximately $273M, down 48% from January 2022. The company blamed “an approximate 80% decline North American RV production compared to January 2022” for the steep drop.
“Our team’s deep industry knowledge and experience navigating fluctuating production schedules will guide us in 2023, during which we anticipate production levels will normalize,” Lippert said. “Although we expect strong organic growth within RV, we believe this down cycle will be different than the last as our marine, adjacent and aftermarket markets continue to support our diversification strategy.”
Shares of LCI Industries ( LCII ) slipped 4.89% shortly after the market open on Tuesday.
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LCI Industries stock slips on wider than expected loss