THOR Industries today announced financial results for its first fiscal quarter ended Oct. 31.
“We are pleased with our performance to start fiscal 2024 as the fiscal first quarter played out largely as expected. As anticipated, independent dealer destocking efforts in North America and seasonally lower first quarter production within our European segment impacted our unit shipment volumes during the quarter. Despite this, our fiscal 2024 first quarter financial performance demonstrates the collective efforts of our operating companies to prioritize profitability in a soft demand environment. Against this backdrop, our experienced operating teams remain focused on prudently managing cost structures and enacting commercial strategies to adapt to evolving market conditions. Over our history, the agility and flexibility of our business model has been core to our success and will continue to position THOR and its independent dealers well as we move through fiscal 2024 and beyond,” said Bob Martin, president and CEO of THOR Industries.
First-Quarter Financial Results
Consolidated net sales were $2.5 billion in the first quarter of fiscal 2024, compared to $3.11 billion for the first quarter of fiscal year 2023.
Consolidated gross profit margin for the first quarter was 14.3%, a decrease of 140 basis points when compared to the first quarter of fiscal year 2023.
Net income attributable to THOR Industries and diluted earnings per share for the first quarter of fiscal year 2024 were $53.6 million and $0.99, respectively, compared to $136.2 million and $2.53, respectively, for the first quarter of fiscal 2023.
THOR’s consolidated results were driven by the results of its individual segments as noted below.
North American towable RV net sales were down 28.3% for the first quarter of fiscal 2024 compared to the prior-year period, driven by a 13% decrease in unit shipments and a 15.3% decrease in the overall net price per unit. The decrease in the overall net price per unit was primarily due to a shift in product mix toward travel trailers and more moderately priced units along with higher sales discounting levels compared to the prior-year quarter.
North American towable RV gross profit margin was 12.5% for the first quarter of fiscal 2024, compared to 14.9% in the prior-year period. Income before income taxes for the segment’s first quarter of fiscal 2024 was $49.2 million, compared to $111 million in the first quarter of fiscal 2023.
North American motorized RV net sales decreased 36.7% for the first quarter of fiscal 2024 compared to the prior-year period. The decrease was primarily due to a 31.5% reduction in unit shipments, partly due to greater independent dealer restocking in the prior-year period, as well as a 5.2% decrease resulting from changes in product mix and net price per unit as current-year shipments trended toward more moderately priced Class B and Class C units compared to higher-priced Class A units.
North American motorized RV gross profit margin was 11.2% for the first quarter of fiscal 2024, compared to 16.5% in the prior-year period. Income before income taxes for the first quarter of fiscal 2024 decreased to $37.1 million compared to $124.4 million in the prior-year period, driven by the decrease in net sales and the decline in the gross margin percentage.
European RV net sales increased 40.4% for the first quarter of fiscal 2024 compared to the prior-year period, driven by a 19.5% increase in unit shipments and a 20.9% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price.
See THOR’s full financial report and management commentary here.