THOR Industries announced financial results for its third fiscal quarter ended April 30.
“We are proud of our teams’ performance as they have executed our variable cost model and driven operating efficiencies and enabled THOR to perform relatively well in a difficult market. Indicators of the long-term prospects for our industry remain very positive; accordingly, we remain very confident in the long-term outlook for our industry and for THOR,” said Bob Martin, president and CEO of THOR Industries.
“In our fiscal third quarter, our independent dealers experienced increased retail activity during the spring selling season; however, conversion to sales remained difficult in light of the economic pressures on retail buyers. Faced with elevated floor plan interest rates, our independent dealers remain understandably cautious with their ordering patterns; consequently, our independent dealer inventory levels remain suppressed. Given the macroeconomic conditions, we see this cautious approach as healthy for our industry and maintain our confidence in a robust return of our top and bottom line performance once macro pressures subside. Until a strong market does return, we will continue to be disciplined with production and will continue to work with our independent dealers to maintain a steady, albeit depressed, retail pull-through by focusing our production on floorplans and price points that resonate with consumers in the current environment. Our dealers have been great partners with us through this cycle and, together, we will continue to successfully navigate a prolonged challenging market,” added Martin.
Third-Quarter Financial Results
Consolidated net sales were $2.80 billion in the third quarter of fiscal 2024, compared to $2.93 billion for the third quarter of fiscal 2023.
Consolidated gross profit margin for the third quarter of fiscal 2024 was 15.1%, an increase of 30 basis points when compared to the third quarter of fiscal 2023.
Net income attributable to THOR Industries and diluted earnings per share for the third quarter of fiscal 2024 were $114.5 million and $2.13, respectively, compared to $120.7 million and $2.24, respectively, for the third quarter of fiscal 2023.
THOR’s consolidated results were primarily driven by the results of its individual reportable segments as noted below.
Segment Results
North American towable RV net sales were down 4.7% for the third quarter of fiscal 2024 compared to the prior-year period, driven by a 15.1% increase in unit shipments offset by a 19.8% decrease in the overall net price per unit. The decrease in the overall net price per unit was primarily due to the combined impact of a shift in product mix toward our lower-cost travel trailers and more moderately priced units along with sales price reductions compared to the prior-year period.
North American towable RV gross profit margin was 12.9% for the third quarter of fiscal 2024, compared to 12.8% in the prior-year period. The increase in gross profit margin was primarily driven by a decrease in the material cost percentage due to the combined favorable impacts of lower discounting, cost-saving initiatives and product mix changes.
North American motorized RV net sales decreased 18.7% for the third quarter of fiscal 2024 compared to the prior-year period. The decrease was primarily due to a 20.0% reduction in unit shipments, as current dealer and consumer demand has softened in comparison to the prior-year period, offset by a 1.3% increase in net sales due to changes in product mix and net price per unit.
North American motorized RV gross profit margin was 11.1% for the third quarter of fiscal 2024, compared to 11.7% in the prior-year period. The decrease in the gross profit margin for the third quarter of fiscal 2024 was primarily driven by the decreased net sales volume along with increased sales discounts and chassis costs.
European RV net sales increased 7.4% for the third quarter of fiscal 2024 compared to the prior-year period, driven by a 1.5% decrease in unit shipments and an 8.9% increase in the overall net price per unit due to the total combined impact of changes in product mix and price. The overall net price per unit increase of 8.9% includes no impact from foreign currency exchange rate changes as rates were consistent for the two periods.
See THOR’s full financial report and management commentary here.
