THOR Industries announced financial results for its fourth fiscal quarter ended July 31, 2024.
“Our teams delivered solid performances as we continue to navigate the persistent challenges in the industry’s retail environment. We realized strong margin performance relative to the current market conditions as our teams executed on strategic initiatives designed to maximize our operational efficiency. This long-term focus puts THOR in a strong position for our Fall Open House event and the coming winter season,” said Bob Martin, president and CEO of THOR Industries.
“The macroeconomic challenges facing our independent dealers and end consumers have been an impediment to our industry for an extended period of time. THOR’s business model and discipline allow us to not just adjust to what we’ve referred to as ‘bouncing along the bottom,’ but to also make internal efficiency improvements which contributed to improving our fourth quarter gross profit margin despite the reduction in our net sales. While challenges persist, we are confident in our ability to continue to successfully manage our way through them. We will remain disciplined with production to help our independent dealer inventories stay fresh and in line with retail demand to protect margins in this challenging market. Our 44-year history has taught us that this cautious approach is healthy for our independent dealers, the industry and for THOR. Our confidence in the inevitable return of a robust market remains unchanged. It’s not an ‘if’ proposition but a ‘when’ proposition,” added Martin.
Fourth Quarter Financial Results
Consolidated net sales were $2.53 billion in the fourth quarter of fiscal 2024, compared to $2.74 billion for the fourth quarter of fiscal 2023.
Consolidated gross profit margin for the fourth quarter of fiscal 2024 was 15.8%, an increase of 140 basis points when compared to the fourth quarter of fiscal 2023, aided in part by a favorable LIFO inventory adjustment due to reductions in inventory levels as well as an improved warranty cost percentage.
Net income attributable to THOR Industries, Inc. and diluted earnings per share for the fourth quarter of fiscal 2024 were $90.0 million and $1.68, respectively, compared to $90.3 million and $1.68, respectively, for the fourth 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 up 0.1% for the fourth quarter of fiscal 2024 compared to the prior-year period, driven by a 16.3% increase in unit shipments offset by a 16.2% 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 along with sales price reductions compared to the prior-year period.
North American towable RV gross profit margin was 12.6% for the fourth quarter of fiscal 2024, compared to 11.9% in the prior-year period. The increase in gross profit margin percentage was primarily due to a decrease in both the overhead and warranty expense percentages.
North American towable RV income before income taxes for the fourth quarter of fiscal 2024 was $50.9 million, compared to $55.7 million in the fourth quarter of fiscal 2023. This decrease was driven primarily by an increase in selling, general and administrative costs.
North American motorized RV net sales decreased 21.2% for the fourth quarter of fiscal 2024 compared to the prior-year period. The decrease was primarily due to a 25.1% reduction in unit shipments, as current dealer and consumer demand has softened in comparison to the prior-year period, partially offset by a 3.9% increase in net price per unit.
North American motorized RV gross profit margin was 12.8% for the fourth quarter of fiscal 2024, compared to 8.6% in the prior-year period. The increase in the gross profit margin percentage for the fourth quarter of fiscal 2024 was primarily driven by decreases in each of the material, labor and warranty cost percentages, with the decrease in material percentage largely due to the favorable impact of a LIFO inventory adjustment as a result of inventory reduction measures, partially offset by higher sales discounts.
North American motorized RV income before income taxes for the fourth quarter of fiscal 2024 increased to $29.8 million compared to $21.0 million in the prior-year period, driven by the increase in gross profit margin percentage.
