Shares of
Winnebago Industries
were falling Wednesday after the motorhome maker reported a big drop in revenue amid discounts and volume decreases.
Winnebago
(ticker: WGO) reported fiscal third-quarter revenue of $900.8 million, which missed analysts’ expectations of $977 million, according to FactSet. A year ago, Winnebago reported revenue of $1.46 billion.
The company said in a press release that the sales decline was primarily due to “lower unit sales related to RV retail market conditions and higher discounts and allowances compared to prior year.”
Revenue in Winnebago’s first and second quarters also declined from year-earlier levels. Demand for RVs has been falling over the past year as higher interest rates and ongoing inflationary pressures have swayed purchasing decisions. According to the RV Industry Association’s April shipment report, total RV shipments were down 52.1% year over year.
Winnebago reported adjusted earnings in the third quarter of $2.13 a share, down from $4.13 a year earlier, but above Wall Street estimates of $1.78 a share.
“In the midst of challenging market conditions, our team continues to successfully navigate a dynamic environment with a dual focus on taking care of our customers and operating the business with discipline, resulting in ongoing value for our shareholders,” Chief Executive Michael Happe said.
Shares of Winnebago were down 5% in premarket trading Wednesday to $61. Coming into the session, the stock has risen 22% in 2023.
Write to Angela Palumbo at [email protected]
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