LCI Industries has reported its third quarter 2019 results, showing net sales of $586.2 million, a decrease of 3 percent year-over-year. Aftermarket sales, however, grew to $74.7 million for the quarter, up 16 percent year-over-year. Additionally, international sales grew to $35.3 million for the quarter, up 32 percent year-over-year, and domestic OEM RV sales accounted for less than 59 percent of total net sales for the 12 months ended Sept. 30.
“We executed further on our diversification strategy in the third quarter, again delivering notable growth in our aftermarket and international sales, which now together make up over 41 percent of our last twelve months sales,” said CEO Jason Lippert. “Importantly, we have been able to grow these businesses despite decreased RV and marine volumes as dealers move closer to more normalized inventory levels. Our ability to continually outperform the industry by delivering innovative products and leveraging our strengths in new markets, while at the same time, expanding margins through our proactive measures and operational enhancements, is a testament to our strategy. … As we look forward, our team remains focused on driving financial performance and generating shareholder value as we make progress on our diversification strategy to build momentum for the remainder of 2019 and into 2020.”
The decrease in year-over-year net sales for the third quarter of 2019 reflects a continuation of lower RV wholesale shipments seen throughout the year as dealers appear to be completing corrections of their inventory levels, which is expected to be completed by the end of this year, offset by continued growth in LCI’s aftermarket and international markets.
Net sales from acquisitions completed by LCI over the 12 months ended Sept. 30, contributed $18.4 million in the third quarter of 2019.
The company’s content per travel trailer and fifth wheel RV increased $77 to $3,531, compared to $3,454 for the 12 months ended Sept. 30, 2018. The content increase in towables was a result of organic growth, including new product introductions and price increases, as well as acquisitions.
LCI’s content per motorhome decreased $71 to $2,405, compared to $2,476 for the 12 months ended Sept. 30, 2018. The content decrease in motorhomes was primarily a result of the wholesale mix shifting to smaller units.
