Thor Industries reported wholesale RV shipments increasing 5.8% in its fiscal third quarter of 2024 from the fiscal third quarter of 2023.
Despite the increase, Thor reported lower net sales and profits compared with the fiscal third quarter of 2023.
Thor President and CEO Bob Martin said, “In our fiscal third quarter, our independent dealers experienced increased retail activity during the Spring selling season; however, conversion to sales remained difficult in light of the economic pressures on retail buyers.”
Thor’s dealer body built inventory with the shipment increase. Still, as of April 30, Thor dealer inventory levels totaled 87,900 RVs. The total is down 22.2% compared with a year earlier and at the lowest levels since the summer of 2021.
The company’s overall net sales for the quarter totaled $2.8 billion, down 4.4% from the fiscal third quarter of 2023. Towable segment sales fell 4.7% from the fiscal third quarter of 2023. Motorized segment sales fell 18.7% from the fiscal third quarter of 2023.
High chassis costs continue to impact motorized prices. A storm that struck Airstream facilities in March also impacted chassis inventory. Thor said the manufacturer expects facility production to return in the 2024 fourth quarter when replacement chassis arrive.
Thor said North American dealer sentiment has changed little from recent quarters. A soft retail environment and elevated floorplan interest rates are causing dealers to remain cautious about inventory, Thor said. The manufacturer expects the sentiment to continue at least through its fiscal fourth quarter.
Although an industry recovery has been slower than Thor Industries first forecast, the manufacturer said this down cycle is “no different than those that have come before it.”
Thor said fiscal third-quarter towable RV sales were affected by lower average selling prices compared with the fiscal third quarter of 2023. Increased retail activity in the spring selling season, while below previous years’ totals, enabled Thor to moderate some promotional activity, the company said.
Thor Senior Vice President and Chief Operating Officer Todd Woelfer said, “As we look ahead to our fiscal fourth quarter and the coming model year change, we will continue to be aggressive in working with our dealer partners to keep inventories fresh.”
Although Martin and Woelfer said keeping inventories fresh was a key theme, Martin said there were limits to actions Thor would take.
He said, “We will not chase temporary market share gains that require excessive degradation to our margins and the value of our brands.”
Amid economic challenges, Thor remains optimistic about the future. The manufacturer cited consumer interest in the RV lifestyle as a spark of hope.
“As we look beyond the current macroeconomic environment,” Thor said, “we believe that the growth in the addressable market will lead to strong future years for Thor and the RV industry.”
