Citing decreased wholesale RV shipments, Lippert reported its first quarterly financial loss since at least 2011.
The supplier pre-announced results in late January. The final results reported Tuesday missed analysts’ estimates of earnings and quarterly revenue.
The dip extended through January, Lippert reported. The company said January net sales totaled $273 million, down 48% from January 2022. Lippert said the result came from an 80% decline in RV wholesale production compare with January 2022.
“Though we faced headwinds, primarily in the fourth quarter as OEMs implemented production shutdowns, the diversification of our businesses and actions to flex staffing helped mitigate the impact on earnings,” Lippert President and CEO Jason Lippert said. “We expect these efforts will limit margin pressure as we move through 2023, but we did incur severance-related and inventory reserve costs in the fourth quarter.”
Despite the quarterly loss, Lippert reported record sales and profits in 2022. Sales totaled $5.2 billion, up 16% from 2021. Profits totaled $395 million, up 37% from 2021.
Although fourth-quarter sales slowed, Lippert’s content per North American travel trailer and fifth wheel rose again to a new record. For the 12 months ending Dec. 31, 2022, Lippert’s content per North American travel trailer and fifth wheel rose 45% year-over-year to $6,090.
Jason Lippert said the company was prepared to tackle 2023’s industry challenges.
“Despite persistent macro-economic headwinds, we remain confident for the future as millions of campers continue to enjoy the outdoor lifestyle,” he said. “Our team’s deep industry knowledge and experience navigating fluctuating production schedules will guide us in 2023, during which we anticipate production levels will normalize. Although we expect strong organic growth within RV, we believe this down cycle will be different than the last as our marine, adjacent and aftermarket markets continue to support our diversification strategy. I am excited for the growth opportunities ahead.”
