Higher interest rates and concerns over an economic slowdown or recession my affect consumer demand for recreational vehicles over the next few quarters, but Winnebago remains confident in long-term trends spurred by the pandemic.
"Engagement in the outdoors continues to be extremely healthy in 2023," said Mike Happe, Winnebago's chief executive, during the Eden Prairie-based company's second quarter earnings conference call.
Winnebago was expecting its second quarter financials to decline from the pandemic-driven record results that it posted a year ago. Results did decline, but they beat the revenue and earnings expectations of analysts.
Net income for the quarter ended Feb. 25 was $52.8 million, down 42% from the $91.2 million in the year ago quarter. Revenue decreased 26% to $866.7 million. Adjusted earnings per share of $1.88 decreased 40%.
Analysts were expecting adjusted EPS of $1.25 a share on revenue of $793.5 million.
Winnebago has worked on operational efficiency and to diversify its portfolio of products and brands under Happe. He pointed to those efforts — including growth of the company's boat unit — in helping the company manage through the expected decreased demand after the pandemic had created a surge of interest in RV and outdoor lifestyles.
"Winnebago Industries' second quarter results continue to demonstrate the resilience of our diversified portfolio of premium brands," Happe said in a news release. "Another strong quarter of performance in our Marine segment helped to offset a softening in consumer demand for RVs from recent cyclical highs."
The marine segment saw revenue increase 16% to $112.9 million, helped by price increases and led by growth in its Barletta aluminum pontoon boats business.
