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Thor and Winnebago must lower backlog to keep stockholders happy

If you’re wondering if profits are the sole motivator of the RV industry’s headlong rush to build as many RVs as possible this year … well, of course that’s the reason. But a recent article by Demitri Kalogeropoulos in The Motley Fool stock guidance and research service pointed out a few additional insights.

In a story about Thor Industries and the recent ups and downs with its stock price, The Motley Fool noted that Thor’s stock has been up as high as 60 percent this year before “evaporating” in recent months.

The Motley Fool writer Kalogeropoulos said the biggest question investors are asking Thor is how well it and fellow manufacturers like Winnebago Industries can handle the historic supply and inventory challenges.

How much backlog are we talking about?

Thor’s order backlog climbed again last month and now sits at about $18.5 billion. Thor said in September that there was no sign of future slowdowns. That backlog amount would surpass Thor’s total revenues for the previous year. Winnebago is also reporting a backlog in the double-digit billions.

The investor questions come as that humongous backlog order cruises into the future. Backlog orders can be canceled, and if Thor and Winnebago both leave potential buyers waiting too long, those orders and the money that comes with them might be gone with the wind.

Investors want to see Thor make some progress on closing the gap on backorders and turning those “maybe” sales into real numbers for the bottom line.

As The Motley Fool noted, the factor above might be the best explanation for the industry’s all-out push to make as many rigs as they can – right away. Watching the backorder number continue to grow won’t make investors happier.

Thor and Winnebago need to close the gap if they want their stock prices to keep growing, and that means cranking out a lot more RVs as fast as they can.

##RVT1030b

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Vanessa Simmons
1 month ago

I’m a little devilish…my first thought is I want to go order a couple, wait 5 months then cancel. 😉

Mark W
1 month ago

There’s an old expression and it’s applicable here; “haste makes waste”.

Maurizio Taglianini
1 month ago

Just like bricks & mortar, RVs are worth an independent survey – PDI 🙂

Wayne
1 month ago

In the enthusiasm to produce more, don’t forget the Quality of the final product. Avoid 2nd and 3rd rate sound systems. Cheap furniture and coverings. Be sure all of the loose ends are connected, especially the electrical ends.

Rick Stephenson
1 month ago

Glad I saw this. Was thinking of purchasing a new RV next Spring, but now I’ll keep what I have. No need to purchase junk and then have to wait in line with the other junk owners trying to get my RV fixed.

Sandy Swarts
1 month ago

If they crank out RV’s as fast as they can, they will be sacrificing quality. I would rather wait and get a quality built RV than one quickly. Fortunately, I bought my Winnebago Micro Minnie towable just before COVID was taking a grip on the workforce, and there was only minor things wrong with my camper, all fixed in a day at the dealer.

Bill T
1 month ago

Yes, lets dump more crap on the buyers and dealers. That should solve everything. Carry out the best PDI, folks, before you sign on the dotted line or you’re stuck with it.

Ronda
1 month ago
Reply to  Bill T

What is a PDI?

HappyCamper7424
1 month ago
Reply to  Ronda

Pre Delivery Inspection