Thor Industries reported fiscal fourth-quarter and full-year financial results, posting a $265.3 million profit in fiscal 2024, a 29% decrease from fiscal 2023 profits.
The company said its production is aligned with retail sales. Dealers continued to lower inventories in the fiscal fourth quarter, “indicating that our operating companies responded well to dealer demand changes and appropriately aligned production with retail pullthrough.”
Thor said at the end of July, the manufacturer believed dealers’ inventory levels were at or slightly higher than their comfort level in the current market.
“Consistent with our approach throughout the current down cycle,” the company said, “Thor operating companies will continue to manage production in a disciplined manner with an elevated level of conservatism.”
Thor said the recent Federal Reserve rate cut is a good start to improving the high interest rate environment that has stifled retail sales. However, the company said a single cut would have minimal impact.
“Over time, a series of rate cuts will have a positive impact on the North American RV industry and Thor in a number of ways,” the company said. “First, we believe the reduction in interest rates will help to boost consumer sentiment.…A second positive impact will be the effect on independent dealer floorplan financing costs.”
Thor said the company was cautious about fiscal 2025, but the interest rate cut could boost consumer confidence and lead to stronger retail in the second half of the fiscal year.
“As we look ahead to fiscal year 2025, we believe dealers will remain hesitant to hold any excess inventory until a sustained positive inflection in retail demand takes hold,” Thor said. “We also expect product mix will continue to favor lower cost and lower margin units.”
