Thor Industries’ 2025 fiscal second-quarter financial results showed the company’s sales declining, leading to net loss after posting profits in the fiscal second quarter of 2024.
The manufacturer said it saw strengthening consumer confidence and higher dealer optimism since Elkhart Extravaganza.
Despite the positive predictions, Thor acknowledged February reports that consumer confidence nationwide adjusted down.
Thor President and CEO Bob Martin said, “As the challenging economic environment persists, our actions remain focused on what we can control: the products that we offer and the relationships that we foster with dealers and retail customers. This approach will help us avoid growth of independent dealer inventory levels of our products until market conditions improve.”
Thor’s consolidated net sales were $2.02 billion, compared to $2.21 billion for 2024, a decrease of 8.6%. The company posted a net loss of $551,000 in the quarter compared with a $7.2 million profit in 2024’s fiscal second quarter.
The financial report is the first opportunity Thor Industries had to publicly address tariffs to Canada, China and Mexico. The manufacturer said it is closely monitoring policies and their potential supply chain affect. Thor said a high percentage of raw materials, distributed products and motorized chassis are produced or sourced domestically.
“We do anticipate experiencing some cost increases for the limited number of components and distributed products that are imported from abroad, as well as on certain chassis that are imported,” Thor said. “Additionally, we expect some suppliers to reactivate pass-through mechanisms that were introduced during previous tariff environments.”
If fully implemented, Thor said tariff policies would likely result in manageable impacts on sales prices.
“The mitigation strategies we already have in place will serve to limit those impacts,” Thor said, “and allow us to remain committed to delivering high-quality RVs at desirable price points while adapting to these economic changes.”
Thor said retail demand will be directly correlated to consumer confidence. Through the spring selling season, the manufacturer said it expects the retail market to be moderately stronger year-over-year.
Thor reported affordability remains a key consumer focus. The manufacturer said higher material and production costs raised RV prices, but Thor is working to manage expenses, optimize its supply chain and provide consumers the best value.
Thor said it made strides in addressing affordability by increased lower-cost travel trailers in its product mix. In the first six months of fiscal 2025, the manufacturer’s average North American towable sales price dropped 11.1%.
Thor plans to work closely with its dealer partners to produce the optimal product mix and reach consumer’s desired price point.
Thor said its dealer base restocked in the fiscal second quarter, adding about 11,000 RVs to its inventory to total about 86,200. The inventory is just below the 87,800 RVs in inventory at the end of the fiscal second quarter of 2024.
Thor said, “We believe that the current level of North American independent dealer inventory, while materially below historic norms, is appropriate.”
