THOR drives into economic headwinds
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Elkhart-based THOR Industries Inc. (NYSE: THO) is reporting first quarter net income of $136.2 million, down from $242.2 million during the same period a year ago. The recreational vehicle maker says it has been negatively affected by macroeconomic headwinds, impacting consumers and independent dealers.
The RV manufacturer reports Q1 net sales of $3.1 billion, compared to $3.9 billion during the same quarter in fiscal 2022, which was a record year for the industry.
“To be sure, the retail environment is being impacted by inflation and monetary policy driving higher interest rates,” said THOR President and Chief Executive Officer Bob Martin. “The current environment is challenging, but it does not diminish the widely-shared, long-term optimism for the industry or for THOR.”
In November, the Recreational Vehicle Industry Association reported year-to-date shipments of towable RV’s and motorhomes were down 8.2% compared to the first nine months of 2021. THOR says it responded to softening market conditions.
“We proactively adjusted production levels of towable products to balance wholesale production with the pace of softening retail sales while making continued progress in restocking inventory levels of motorized product,” said Martin.
Looking to the year ahead, the RVIA is expecting a further drop in wholesale shipments. A quarterly industry forecast, conducted by ITR Economics, puts the estimate at 419,000 units in 2023.
If realized, that would be a 16% decline from the projected 2022 total.
“We’re expecting to see these monthly shipments be a little bit lower, like we’ve seen on the back half of this year. And then we expect it to pick back up,” said RVIA spokesperson Monica Geraci.
Martin expects the challenging operating environment to continue “given the current macroeconomic conditions and future uncertainties that exist.”
Click here to view the earnings report.