Rev Recreation Group (RRG) said the RV manufacturer is still maintaining a regular production schedule with dealer inventories on its brands about 50% below pre-2020 levels as 2022 ends.
Chief Financial Officer Mark Skonieczny said turn times on RRG motorhomes remain strong.
“We continue to see our products not staying on the floor that long,” he said. “We did see a drop in retail sell-throughs here, but at the same time, we continue to see good throughput on the dealer lots. The dealers will carry what sells and what moves (quickly to avoid incurring) the flooring cost, so we continue to see our products move through the channel.”
President and CEO Rod Rushing said several RVs remain sold before they are shipped to dealers’ lots.
“We did replenish inventory so we can get sell-through and get a good pull in advance,” he said. “A lot of our units are still retail sold as they come through. That percentage has dropped a bit, but we are still very consciously working with our dealers around making sure it is turning and did not stay on the lots.”
Financially, RRG’s segment posted sales of $260 million in the fourth quarter of 2022, up 19% from the fourth quarter of 2021. RRG’s backlog fell 9% from the fourth quarter of 2021 to $1.1 billion.
Skonieczny said RRG backlogs in Type A motorhomes and towables extend beyond the company’s fiscal 2023. However, he said the company expects the backlog to decline through the year and work toward the manufacturer’s traditional six-to-seven-month backlog.
“We are over a two-year backlog, which was not normalized, so we are talking about getting back to the levels that we expect,” Skonieczny said. “We will have less booking.”
Skonieczny said as 2023 model-year RVs roll off the manufacturing lines, orders placed for 2022 models will be converted to 2023 models. RRG is seeing reorder rates on 2023 models, he said.
On pricing, Skonieczny said RRG expects to maintain current prices after inflationary costs “to make sure we get the savings that we deserve as some of the commodity prices come down.”
