Winnebago Industries reported revenues for the fiscal 2018 second quarter ended Feb. 24, were $468.4 million, an increase of 26.4 percent compared to $370.5 million for the same fiscal 2017 period.
Gross profit was $67.7 million, an increase of 37.2 percent compared to $49.3 million for the fiscal 2017 period. Gross profit margin increased 110 basis points in the quarter, driven by the continuation of accelerated growth in the towable segment, which accounted for 57 percent of revenues in the Fiscal 2018 second quarter.
Operating income was $35.3 million for the quarter, an improvement of 24.2 percent compared to $28.4 million in the second quarter of last year. Fiscal 2018 second quarter net income was $22.1 million, an increase of 44.6 percent compared to $15.3 million in the same period last year.
President and Chief Executive Officer Michael Happe said, “The second quarter marked another period of solid consolidated results for Winnebago Industries, including strong sales growth, overall market share accretion, and margin improvement, as we continue to build a more balanced full-line RV portfolio. Our towables segment outpaced the industry with robust organic growth and impressive profitability across the Winnebago and Grand Design brands. The towables backlog position and retail performance remain strong, with reasonable field inventory levels driven by our market momentum, increasing share of dealer lots, and further product line expansion. We continue to make incremental progress facing the market in our motorized segment, with encouraging double-digit percentage retail growth in the quarter and a strong increase in our motorized backlog driven by improving product line vitality and appeal. However, there remains much work ahead on motorized profitability improvement as we work to drive a return on the current costs and investments associated with the turnaround strategy.”
Happe added, “During the quarter, we recorded a tax reform benefit and expect a similar favorable tax rate for the remainder of fiscal 2018. We are committed to passing a portion of the tax savings to our hard-working Winnebago Industries employees in the form of a bonus and other selective wage adjustments, making a donation to our foundation, and accelerating facility improvements over the coming months which will create better work environments.”