RV retail sales may be down from a year ago, but Rev Group reported second-quarter revenues outpacing 2022’s second-quarter.
Rev Group reported its second-quarter financials Thursday. Recreation segment revenue rose 6.5% from the second quarter of 2022 to $257 million. Sales rose as the RV manufacturer increased motorhome and travel trailer shipments in the second quarter from the levels of the second quarter of 2022.
Motorhome shipment level comparisons between the second quarters of 2022 and 2023 were not available. Travel trailer shipments increased 29% from the second quarter of 2022. Travel trailer net sales increased 51% from the second quarter of 2022.
“Increased sales versus the prior year were primarily a result of increased shipments of Class A, Class C units and pricing actions,” Rev Group President and CEO Mark Skonieczny. “Partially offsetting the increase were lower sales of Class B units, related to supply chain and irregular dealer inventory.”
Skonieczny said the manufacturer felt good about the recreation segment’s performance and its 10% earnings margin.
“If you look at our inventory across the whole portfolio, our dealer inventory is still down 25% from where we were pre-Covid,” he said. “So, we have not normalized even from an inventory level. We are still seeing a significant amount of retail sold units in the Type B and C categories.”
Skonieczny said Rev Group dealers are managing challenging floorplan financing with surplus towable RVs on their lot.
“We are able to do a lot from a retail sold perspective,” he said. “Our units continue to sell through quicker than the industry norm.”
Rev Group continues to work with its dealers on aged inventory. Towable orders fell during the second quarter of 2023, as did Type A motorhome orders to a lesser extent, Skonieczny said.
“We continue to expect a portion of these (Type A) orders will replace with 2024 model year orders,” Skonieczny said. “Many dealers … are expected to maintain a disciplined approach toward overall inventory levels given the current interest rate and economic environment.”
The second quarter of 2023 saw Lance Camper roll out its off-road travel trailer, the Enduro. Skonieczny said because towable inventory has not normalized in its dealer body, niche sales have continued.
“We have announced our Enduro off-road product within the quarter, which was well received,” he said. “We are seeing some uptick from the acceptance of that product.”
