Winnebago reports revenue decrease for Q1 | Boating Industry
Winnebago Industries, Inc. recently reported financial results for the Company’s Fiscal 2024 first quarter.
Revenues for the Fiscal 2024 first quarter ended November 25, 2023, were $763 million, a decrease of 19.9% compared to $952.2 million for the Fiscal 2023 first quarter, which the company said was primarily driven by lower unit sales related to market conditions, product mix and higher discounts and allowances compared to prior year, partially offset by carryover price increases related to higher motorized chassis costs.
Gross profit for the Fiscal 2024 first quarter was $115.8 million, a decrease of 27.8% compared to $160.4 million for the Fiscal 2023 first quarter. Fiscal 2024 first quarter net income was $25.8 million, a decrease of 57.1% compared to $60.2 million in the prior year quarter.
“Winnebago Industries’ first quarter results underscore the resilience of our diversified portfolio and variable cost structure in navigating a sales environment influenced by challenging retail trends and intentional inventory management by dealers,” president and CEO Michael Happe said. “Our steadfast commitment across our portfolio to production discipline that aligns with market conditions, and improving operational excellence continues to deliver solid profitability. Throughout the first quarter, we maintained our focus on recent and forthcoming multiple new product releases in the towables RV segment, as well as a refreshed, entry-level Aria pontoon product in the marine segment, that address vital considerations surrounding affordability, while staying true to our reputation for outstanding quality and customer service. We also continued to strategically invest in critical long-term initiatives around advanced technology, digital transformation, and IT capabilities. The inauguration of our new Innovation Center represents an important milestone as we strive to cultivate and integrate emerging technology innovations, enhancing the overall value proposition and experience for our customers. Our unwavering commitment to investing in the future reflects our long-term confidence in driving sustained growth, expanding market share, and providing customers with a diverse array of compelling options – all while ultimately delivering value for our shareholders.”
Revenues for the marine segment were $87.3 million for Fiscal 2024 first quarter, down 33.5% from the prior year, primarily driven by a decline in unit volume related to market conditions and higher discounts and allowances, partially offset by carryover price increases.
“Despite continued pressure from macro headwinds, the outdoor recreation market is largely performing in-line with near-term expectations and Winnebago Industries’ innovation engine continues to develop and deliver products that anticipate and exceed the expectations of discerning customers across the outdoor lifestyle market,” Happe said. “We expect our consistent focus on bringing the highest quality and most innovative products to the market at a variety of price points, will position Winnebago Industries to grow our market share and outperform expectations as the market recovers and levels of consumer confidence rise. We remain optimistic that the current cycle of RV dealer destocking is approaching its conclusion, and that market conditions in both retail and wholesale could begin to see improvement in mid to late calendar year 2024. Going forward, we will remain nimble and intentional as we prudently monitor and adapt in response to shifting market conditions, with a focus on profitability, maintaining competitiveness, further securing a preferred market position for our esteemed premium brands and making strategic investments to drive future growth.”
Source: https://boatingindustry.com/top-news/2023/12/21/winnebago-reports-revenue-decrease-for-q1/
