THOR Industries, Inc., a leading manufacturer of recreational vehicles (RVs), announced its financial outcomes for the second quarter of fiscal year 2024 on March 6.
“Our fiscal second quarter, similar to the prior-year period, presented a challenging operating environment as seasonally lower retail demand and cautious dealer sentiment impacted our results. As macro conditions continue to pressure the top line, our teams proactively navigated through the retail offseason to improve the competitive positioning of our operating companies and independent dealer partners,” Bob Martin, president and CEO of THOR Industries, said in a press release.
The company in Indiana disclosed consolidated net sales of $2.21 billion for the quarter, marking a decrease from the $2.35 billion reported in the same period of the previous fiscal year. THOR Industries managed to slightly improve its consolidated gross profit margin to 12.3%.
The net income attributable to THOR Industries for the quarter was $7.2 million, with diluted earnings per share at $0.13. These figures include $14.7 million related to the refinancing of the company’s debt facilities on November 15, 2023.
Notably, we continued to work with our North American independent dealer partners to closely match wholesale production with the pace of retail sales, and we enacted promotional programs to assist independent dealers in moving prior-model-year units and stimulate retail demand. With the rapid increase in interest rates over the past year, dealers face elevated floorplan financing costs that have put substantial pressure on their operations,” Martin said.
In light of the current fiscal performance and market conditions, THOR Industries has adjusted its full-year fiscal 2024 guidance. The company now expects consolidated net sales to range between $10.0 billion and $10.5 billion, with diluted earnings per share projected to be between $5.00 and $5.50.
“As a result, we currently believe that even though the levels and mix of channel inventory are well-positioned ahead of the retail selling season, dealers will remain focused on limiting inventory levels as they manage interest expenses,” Martin added.
THOR Industries projects an improved performance for the latter half of fiscal year 2024. For more information about the second quarter fiscal 2024 results, click here.