Winnebago Industries’ stock experienced a drop on Wednesday following the announcement of lower-than-expected earnings. The recreational-vehicle maker reported earnings of $1.06 per share for the fiscal first quarter, with revenue amounting to $763 million. Analysts, however, had anticipated higher earnings of $1.18 per share on revenue of $724 million, according to FactSet.
Compared to the same period last year, Winnebago’s earnings have significantly decreased. In the previous year’s first quarter, the company earned $2.07 per share on revenue of $952 million. Winnebago attributed the decline in sales to various factors including market conditions, changes in product mix, and increased discounts and allowances compared to the previous year.
The RV industry has faced numerous challenges this year, primarily due to high interest rates negatively impacting demand. According to a report by the RV Industry Association published in November, total RV shipments in October 2022 amounted to 28,371 units, reflecting a significant decrease of 13.1% compared to the 32,652 units shipped in October 2021.
Winnebago CEO Michael Happe expressed optimism despite the prevailing macroeconomic headwinds affecting the industry. Happe stated that the outdoor recreation market is performing in line with expectations and highlighted Winnebago Industries’ commitment to innovation in developing products that exceed customer expectations across the outdoor lifestyle market.
As a result of these developments, Winnebago’s stock experienced a 1.6% decline on Wednesday and is down by 43% for the year.
TechBerry
Happy Galaxy
Forex Cyborg
Forex Fury
FXgoodway