THOR Industries said its net sales for the second quarter were $2.35 billion, a decrease of 39.4% compared to the second quarter of fiscal 2022. The company’s earnings for the quarter were $27.1 million, compared to $266.6 million during the same period a year ago.
“Our fiscal second quarter presented a challenging market environment,” said Bob Martin, president and CEO. “Against this backdrop, our financial results and actions are a testament to our ability to operate in such a dynamic and challenging environment. 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. Despite the challenging quarter, THOR generated positive cash flow and maintained an already strong liquidity profile, positioning THOR to operate from a position of financial strength as we move beyond our second quarter.
“During the quarter, we continued to proactively and decisively balance 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, we expect the successful execution of our aggressive, proactive actions and our variable cost model to position our operating companies and independent dealer partners favorably heading into the second half of our fiscal 2023, which typically experiences stronger retail activity than our second quarter.
“While near-term demand will continue to be influenced by macroeconomic conditions, we believe the recent softening in demand to be temporary. We remain encouraged with the continued level of consumer interest for the RV lifestyle. 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. While we are encouraged by these positive indicators, the current macroeconomic environment is still very dynamic. As a result, we have taken decisive steps to position our company to navigate the near-term softening market conditions.”
The company said its North American towable RV net sales were down 58.2% for the second quarter compared to the prior-year period. The decrease was driven primarily by a 64.6% decrease in unit shipments, partially offset by net selling price increases and a change in product mix. The decrease in unit shipments is primarily due to a softening in current dealer and consumer demand in comparison with the unusually strong second quarter demand in the prior-year quarter, which included independent dealers restocking their lot inventory levels.
North American Towable RV net sales were down 58.2% for the second quarter compared to the prior-year period. The decrease was driven primarily by a 64.6% decrease in unit shipments, partially offset by net selling price increases and a change in product mix. The decrease in unit shipments is primarily due to a softening in current dealer and consumer demand in comparison with the unusually strong second quarter demand in the prior-year quarter, which included independent dealers restocking their lot inventory levels.
North American motorized net sales decreased 24.4% for the second quarter of fiscal 2023 compared to the prior-year period. The decrease was driven primarily by a 26.3% decrease in unit shipments, partially offset by net selling price increases and a change in product mix.
“While macroeconomic uncertainties continue to exist in the segments and geographies we serve, we have high confidence in our operating teams, flexible business model and execution strategy,” Martin said. “Our first half of fiscal 2023 performance reinforces our discipline to remain focused on what we can control. Looking ahead to the second half of fiscal 2023, we intend to maintain that same discipline to navigate this challenging near-term environment while positioning THOR to be an even stronger company when the market recovers.”
