Despite a challenging market environment, the company delivered a resilient performance, generating $2.35 billion in net sales, a decrease of 39.4% compared to the record second quarter of fiscal 2022 and a decrease of 14.0% over the same quarter of fiscal year 2021.
Consolidated gross profit margin for the second quarter was 12.1%, a decrease of 530 basis points when compared to the second quarter of fiscal year 2022 and a 310 basis point decrease compared to the second quarter of fiscal year 2021.
“Our resilient second-quarter performance demonstrates the strength of THOR’s diverse product offering, the experience of our management teams, and the success of our variable cost model,” Thor Industries CEO Bob Martin said.
THOR Industries has revised its full-year fiscal 2023 net sales and diluted earnings guidance with a current net sales estimate of between $10.5 billion to $11.5 billion and diluted earnings per share in the range of $5.50 to $6.50.
The company generated net cash provided by operations for the first half of fiscal 2023 of $185.3 million, compared to net cash provided by operations of $298.1 million for the first half of fiscal 2022 and net cash used in operations of $88.6 million for the first half of fiscal 2021.
During the quarter, THOR Industries balanced wholesale production with the pace of softening retail sales through the traditionally slower winter retail season. This commitment to a disciplined production approach, combined with a softer-than-expected order intake, resulted in second-quarter North American wholesale shipments of 25,372 units.
Despite a significant slowdown of both sales and production, THOR Industries expects the successful execution of its aggressive, proactive actions and its variable cost model to position its operating companies and independent dealer partners favorably heading into the second half of fiscal 2023, which typically experiences stronger retail activity than the second quarter.
Thor Industries CEO Bob Martin believes that despite macroeconomic conditions continuing influence to the near-term, the recent softening in demand is temporary.
“We are experiencing a strong spring retail show season across the country with high attendance figures and solid retail activity. In addition, digital traffic across RV related sites remains well above pre-pandemic levels, reinforcing our long-term optimism for the industry and for THOR,” Martin added.
THOR Industries’ consolidated results were driven by the results of its individual segments, including North American Towable RVs, which experienced a 58.2% decline in net sales compared to the prior year. Gross profit for the segment decreased by 86% to $52.9 million, while the gross profit margin percentage decreased to 6.4% from 19.0% in the prior year.
Despite the challenging quarter, THOR Industries showed its resilience through the strength of its diverse product offering, experienced management teams, and successful variable cost model.
The RV industry has been experiencing a temporary softening in demand due to the macroeconomic conditions, but THOR Industries remains encouraged with the continued level of consumer interest for the RV lifestyle.
The company has taken decisive steps to navigate the near-term softening market conditions, positioning itself to operate from a position of financial strength as it moves beyond the second quarter.
The challenges faced by THOR Industries and the RV industry as a whole serve as a reminder of the importance of adaptability and resilience in a dynamic market environment.
While near-term demand may continue to be influenced by macroeconomic conditions, the long-term optimism for the industry remains strong.
About THOR Industries, Inc.
Thor Industries, Inc. is an American manufacturer of recreational vehicles (RVs). The company sells towable and motorized RVs through its subsidiaries brands including Airstream, Heartland RV, Jayco, Livin Lite RV, and others. The company’s headquarters is in Elkhart, Indiana. It has manufacturing facilities in Michigan, Ohio, Indiana, Idaho, and Oregon