LCI Industries has reported its second quarter 2019 results, showing net sales of $629 million – a decrease of 8 percent. Aftermarket sales, however, grew to $75.7 million for the quarter, up 12 percent year-over-year; and international sales grew to $31.5 million for the quarter, up 21 percent year-over-year.
“In the second quarter, we delivered solid performance led by growth in aftermarket, as well as sequential margin expansion driven by market share gains, operational efficiencies, and material cost improvements,” said CEO Jason Lippert. “While the North American RV market remains challenging, our diversification strategy continues to generate solid momentum. As of June 30, our adjacent, aftermarket, and international sales comprised over 40 percent of our last twelve-month sales, which was supported by 29 percent growth in domestic aftermarket sales over the first quarter and 13 percent year-over-year.
The decrease in year-over-year net sales for the second quarter of 2019 reflects lower RV wholesale shipments as dealers normalize their inventory levels, according to LCI. The supplier believes the industry to be in the final stages of correction, offset by continued growth in the company’s aftermarket and international markets.
“Supplementing our investments in innovation, content growth, and market share gains, we also announced two exciting transactions during the quarter, Lewmar Marine and Lavet, which will further enhance our offerings to the marine and the international RV market, respectively,” said Lippert. “As we look to the back half of 2019, while the domestic RV market will remain somewhat pressured, we believe we have the opportunity to further drive value for our shareholders through a continued focus on diversifying our business as we remain committed to core industry leadership, innovation, and growth into new markets.”
Last month, consolidated net sales were approximately $181 million, down five percent from July 2018. Sales continue to be impacted by reduced production rates by the RV OEMs.
