Winnebago has reported its financial results for the first quarter of fiscal 2018, showing an increase of 83.5 percent, compared to $245.3 million for the fiscal 2017 period. Gross profit was $62.8 million, an increase of 117.6 percent compared to $28.9 million last year. Gross profit margin increased 220 basis points in the quarter, driven by the continuation of accelerated growth in the more profitable towable segment.
Operating income was $31.2 million for the quarter, an improvement of 69.4 percent compared to $18.4 million in the first quarter of last year. Fiscal 2018 first quarter net income was $18 million, an increase of 53 percent compared to $11.7 million in the same period last year.
“As we begin fiscal 2018, we’re pleased with our consolidated results, including continued robust sales growth and margin improvement, as well as further progress toward becoming a larger, more profitable full-line RV provider centered around our two leading brands, Winnebago and Grand Design RV,” said Michael Happe, Winnebago’s president and CEO. “Our Grand Design RV business recently celebrated its one-year anniversary as part of Winnebago Industries and continues to perform well, as does our Winnebago-branded towable division.”
In the first quarter, revenues for the motorized segment were $190.4 million, down 2.4 percent from the previous year.
Revenues for the towable segment were $259.7 million for the quarter, up $209.5 million over the prior year, driven by the addition of $195.4 million in revenue from the Grand Design RV acquisition and continued strong organic growth in Winnebago-branded towable products, which increased more than 50 percent compared to last year.
Mr. Happe continued, “Our towable businesses remain well-positioned to drive future market share and profitability growth given our strong backlog and improving dealer lot space via new product launches,” said Happe. “We remain optimistic about the strength of the RV marketplace as a whole, with overall U.S. shipments expected to exceed 500,000 units in 2017, and a ninth consecutive year of growth projected in 2018. … Our previously-announced towable capacity expansion projects continue moving forward as we position our business to ensure supply keeps pace with future expected demand.”