RV industry giant Thor Industries, Inc. released its financial report for its fourth fiscal quarter, which wound up on July 31. The results were a non-surprising reflection of how the RV industry is doing as a whole. Thor’s quarterly results showed a tiny improvement in the towable division but continued lousy results for motorized.
Thor’s quarterly results; market conditions “bouncing along the bottom”
In a release to corporate investors, Thor’s president and CEO, Bob Martin, described the current market conditions as “bouncing along the bottom,” but maintained a positive spin on company initiatives.
“While challenges persist, we are confident in our ability to continue to successfully manage our way through them,” Martin declared. “We will remain disciplined with production to help our independent dealer inventories stay fresh and in line with retail demand to protect margins in this challenging market. Our 44-year history has taught us that this cautious approach is healthy for our independent dealers, the industry and for Thor. Our confidence in the inevitable return of a robust market remains unchanged. It’s not an ‘if’ proposition but a ‘when’ proposition.”
Overall fourth quarter financial results
Consolidated net sales were $2.53 billion in the fourth quarter of fiscal 2024, compared to $2.74 billion for the fourth quarter of fiscal 2023.That’s down 7.66% by our calculations.
Consolidated gross profit margin for the fourth quarter of fiscal 2024 was 15.8%, an increase of 140 basis points when compared to the fourth quarter of fiscal 2023, aided in part by a favorable LIFO (last in, first out) inventory adjustment due to reductions in inventory levels as well as an improved warranty cost percentage.
Net income attributable to THOR Industries, Inc. and diluted earnings per share for the fourth quarter of fiscal 2024 were $90.0 million and $1.68, respectively, compared to $90.3 million and $1.68, respectively, for the fourth quarter of fiscal 2023.
Towables squeak ahead–barely
Over the quarter, net sales of towable units managed to squeak up one-tenth of a percent. However, comparing net sales on a year-over-year basis, they’re down 12.4%.
Gross profit in the towable arena was up 70 basis points over the quarter, to 12.6%. But again, in a year-to-year comparison with 2023, gross profit was down 40 basis points, standing at 11.6% for the year, compared to 2023’s ending figure of 12%.
Motorhomes sink like stones
While the towable unit market was a bright spot in the spreadsheet, things were decidedly ugly when it came to motorhome numbers. Net sales for the quarter were down 21.2% compared to the fourth quarter 2023. Year-over-year stats were even more dismal, showing a 26.2% loss.
Gross profit margins for motorhome sales were a bit perkier than in 2023’s fourth quarter. This year, 12.8% in the quarter, versus 8.6% in 2023. That meant a 420 basis point improvement. However, year-over-year gross profit margins showed a continuing nasty trend. The fiscal year 2024 gross profit margin stood at 11.4% versus 13.4% in 2023—a loss of 200 basis points.
Thor management surely knows, when “bouncing along the bottom” it’s best to find some padding.
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Thank you, Russ and Tina! 🙂 I expect that these results may be representative of the industry, but perhaps, too, buyers are catching on to the “typical” Thor quality. I guess we’ll see when 10-q and 10-k filings are released by other RV manufacturers. Thanks again, have a great day, safe travels, and safe stays! 🙂