The RV industry has done what many U.S. businesses did in the face of this year’s epic shortages and surging inflation: Churned out more products and made more money than ever before.
Winnebago Industries reported record fiscal 2020 revenues in October – up over 50 percent from the previous year. On Friday, it is expected to post its second straight quarter of sales over $1 billion and a 33 percent increase in earnings per share, according to analysts’ estimates compiled by Refinitiv.
Thor Industries, the largest producer, last week reported record results for its fiscal first quarter while noting its backlog as of the end of October was over $18 billion – a 100 percent increase over a year ago.
Michael Happe, CEO of the Forest City, Iowa-based Winnebago, said in an interview that his company’s retailers have “been able to optimize retail pricing in a way they have not been able to do in a long, long time.”
The RV industry is a prime example of how many U.S. producers have been able to thrive despite COVID-related shortages – and the related price increases in raw materials, from steel and plastic to electronics and foam. The surge in RV sales began early in the pandemic, as worried Americans looked for ways to travel without the risks of staying in motels or riding in airplanes.
Click here to read the whole story from Timothy Aeppel at Reuters.
