Winnebago quarterly results down from pandemic records

As expected, Winnebago Industries' latest earnings were down as recreational vehicle sales slowed after a big pandemic bump last year.

Winnebago said sales during its first quarter ended Nov. 26 were $952.2 million, down 17.6% from the same period a year ago. Earnings fell 40% to $60.2 million, or $1.73 a share.

The Eden Prairie-based company had warned of the drop. The sales and adjusted earnings per share of $2.07 beat analysts' expectations.

"Navigating the near term during the rest of fiscal 2023 is critically important in maintaining momentum and financial health," said Mike Happe, president and CEO of Winnebago, in a news release. "We expect some supply chain issues and the normalization of outdoor retail demand to continue through the rest of this period."

Winnebago competitor Thor Industries last week announced a 21.5% drop in sales in its most recent quarter.

Towable RVs, the biggest category in recreational vehicles, have seen the biggest declines from a year ago. The RV Industry Association's October survey of RV makers showed that shipments of all RVs declined 43% in October and towable RVs off 48.3%.

"Shipments of RVs continue to normalize from last year's record production," said Craig Kirby, president and CEO of the RV Industry Association in the October report. "The RV industry is still on track to deliver a top five year."

Happe said growth in Winnebago's motor home and marine businesses helped mitigate the drop in the towables results. He said the results demonstrate the "ongoing benefits of a more balanced array of outdoor recreation businesses."

The number of motor homes that Winnebago sold declined, but pricing drove the segment's revenue increase to $464.2 million, a 10.1% increase.