LCI Industries has reported its first quarter 2019 results, showing net sales of $592.2 million, a decrease of 9% year-over-year. Content per travel trailer and fifth wheel increased $187 year-over-year, or 6%, to $3,504 for the twelve months ended March 31. OEM sales grew to $169.9 million for the quarter, up 19% year-over-year, while aftermarket sales grew to $60.4 million for the quarter, up 20% year-over-year.
“We continue to execute on our diversification strategy, which delivered high double-digit growth in our adjacent markets, aftermarket, and international sales together which now make up 39 percent of our last 12 months sales,” said Jason Lippert, CEO of LCI. “This strategy has proven critical in the current decreased volume operating environment in our RV OEM segment, as it offset wholesale shipments that were down roughly 30 percent during the quarter as dealers continue to normalize inventory levels. … As we enter the prime retail selling season, we believe that channel inventories will move towards more appropriate levels by the end of the second quarter. In the meantime, we continue to pursue opportunities for content growth, acquisitions, and market share gains, and are confident our strong leadership position in RVs, as well as in our emerging businesses, will drive long-term shareholder value.”
The decrease in year-over-year net sales for the first quarter of 2019 reflects lower RV wholesale shipments as dealers normalize their inventory levels, offset by continued growth in the company’s adjacent industries OEM, aftermarket, and international markets. Net sales from acquisitions completed by the company over the twelve months ended March 31 contributed $31.2 million in the first quarter of 2019.
April consolidated net sales are approximately $218 million, down 8% from April 2018. Sales continue to be impacted by reduced production rates by the RV OEMs.