Winnebago Industries, a leading manufacturer of recreational vehicles and marine products, has reported a decline in revenues for both the fourth quarter and full fiscal year 2024. The company’s fourth quarter revenues decreased by 6.5% to $720.9 million, down from $771.0 million in the same period last year. This decline was primarily due to changes in product mix, although partially offset by higher unit volume. Gross profit also saw a significant drop, falling 26.1% to $94.2 million, with the gross profit margin decreasing to 13.1% according to a press release.
For the fiscal year 2024, which ended on August 26, Winnebago Industries reported a 14.8% decline in revenues to $3.0 billion from $3.5 billion in fiscal year 2023. The company attributed this decrease to product mix changes and lower unit sales related to market conditions. The gross profit for the year fell 26.0% to $433.5 million, with the gross profit margin decreasing to 14.6%.
Michael Happe, President and CEO of Winnebago Industries, addressed the company’s performance, stating, “Winnebago Industries’ fourth quarter performance fell short of our expectations, primarily reflecting the sluggish retail demand environment and operating inefficiencies within our Winnebago branded businesses.” Happe further explained that the RV industry continues to face various challenges, including uncertain retail conditions and higher inventory carrying costs.
Operating expenses for the full year increased significantly, driven largely by a $303 million goodwill impairment charge associated with the Chris-Craft reporting unit. Additional factors contributing to the increase included a full year of Lithionics operations and increased intangible amortization.
Despite these challenges, Winnebago Industries is actively pursuing strategies to navigate the current market landscape. The company has implemented leadership changes to enhance its Winnebago Motorhome and Winnebago Towables businesses. Chris West, formerly with Barletta Boats, has been appointed President of the Winnebago branded motorhome and specialty vehicles business.
Happe emphasized the company’s commitment to innovation, stating, “As evidenced by the recent launch of the Lineage Series M, Grand Design’s first motorized RV, product innovation remains a centerpiece of our long-term strategy.” The company is focusing on balancing cutting-edge features with affordability in response to consumer preferences.
Looking ahead, Winnebago Industries has issued guidance for fiscal year 2025, projecting revenues between $2.9 billion and $3.2 billion. The company anticipates modest revenue growth and a 10% increase in adjusted earnings per share compared to the previous year.
Despite the challenging market environment, Winnebago Industries generated $143.9 million in operating cash flow and returned $106.8 million to shareholders through dividends and buybacks in fiscal year 2024, demonstrating the company’s commitment to maintaining shareholder value even in difficult times.
