For the first time in its 12-year history, Grand Design will be releasing a motorized RV, sometime late in fiscal year 2024.
That announcement was made by Winnebago Industries CEO Michael Happe, who spoke to investors and analysts on a conference call Wednesday following the release of the company’s recently quarterly and full fiscal year earnings.
“Today also marks another milestone in our company’s history as we are excited to announce the forthcoming launch of a Grand Design branded motorhome lineup, scheduled for release late in our fiscal year 2024,” Happe said. “These new models will represent the inaugural foray into the motorhome market under one of the most successful RV brands created and will be a differentiated and complementary offering to our current Winnebago and Newmar brand motorized businesses. Leveraging Grand Design’s inherent strength and unwavering appeal, along with its dedicated and loyal consumer base, we are poised to make a bold entry into this segment.
“The Grand Design team is working diligently to bring this exciting launch to life, and we anticipate showcasing prototype models to select dealers in early calendar 2024 with shipments beginning late in our fiscal 2024 year. As we are currently active in product development, standing up the manufacturing infrastructure and our supply chain network and beginning to engage potential dealers for distribution of this new strategy, we wanted to confirm today the increasing positive chatter and rumors in the marketplace. The bottom-line impact to Winnebago Industries will be meaningfully dilutive in fiscal year 2024 due to sizable start-up costs with limited revenue. But this is an incredibly accretive strategy and financial opportunity for the company in future years.
“In the coming months, we look forward to the Grand Design team sharing more details about our premium product offerings from Grand Design Motorhome. The excitement surrounding this brand extension is palpable, and we cannot wait to bring these exceptional motorhomes to market, thereby further enriching our portfolio and delighting our valued customers. It is also important to note that the leader and one of the founding partners of the Grand Design business, Don Clark, has recently agreed to a 5-year employment extension with Winnebago Industries as well. We are thrilled for Don and continue to support and appreciate his contributions to the company. As we enter fiscal year 2024, my confidence in the enduring strength of our diverse portfolio of premium brands within the outdoor recreation industry continues to grow.”
Grand Design was founded in 2012 by Clark and brothers Ron and Bill Fenech, all industry veterans, and it subsequently became a part of Winnebago Industries.
Winnebago reported revenue for this past fiscal year of $3.5 billion, a decrease of 29.6% from the $5 billion in fiscal 2022.