Winnebago Industries said it had net sales of $866.7 million in the second quarter, a 25.6% decrease over the $1.2 billion in revenue during Q2 of ’22. Its income was down too: Net income for the quarter was $52.8 million, a decrease of 42.1% compared to $91.2 million in the prior year quarter.
The company said several factors were to blame, including decreased volume of units sold, higher material and input costs and deleverage and productivity loss from supply disruptions. The losses were partially offset by carryover price increases in all segments.
The highlight of the quarter was marine sales, which climbed 16 percent, to $112.9 million.
“Winnebago Industries’ second quarter results continue to demonstrate the resilience of our diversified portfolio of premium brands,” said President and CEO Michael Happe. “Another strong quarter of performance in our marine segment helped to offset a softening in consumer demand for RVs from recent cyclical highs. Furthermore, ongoing efforts to continuously improve efficiency, reinforced by our commitment to disciplined execution and cost management, allowed us to maintain competitive margins across our towable, motorhome and marine segments. These results could not have been achieved without an incredible effort from the Winnebago Industries team, who continues to demonstrate exceptional discipline, while simultaneously advancing industry-leading innovation. The recent launches of the Barletta Aria and Reserve, as well as the new Chris-Craft Calypso 32 are the latest examples of the innovation that is driving our business forward.”
Revenues for the towable segment were $342.5 million for the second quarter, down 47% from the prior year, primarily driven by a decline in unit volume. Backlog decreased to $278.2 million, 85.1% lower than the prior year period, driven by higher dealer inventory levels.
Revenues for the motorhome segment were $403.8 million for the second quarter, down 3.3% from the prior year. Backlog decreased to $872.7 million, down 60.6% from the prior year, driven by normalizing levels of dealer inventories.
“Looking ahead, we will continue to actively manage and navigate a dynamic demand environment, with a continued focus on profitability through disciplined production and cost management, leveraging our highly variable cost structure, and by working closely with our dealer partners to balance and optimize inventory levels and product mix,” Happe said.
