Thor Industries reported fiscal 2022 financial results last week before an evening meeting with analysts on Elkhart Extravaganza’s first day.
Thor reported full-year net sales of $11.12 billion, down 31.8% from its record net sales in fiscal 2022. Full-year earnings per share fell 66% in fiscal 2023 from the previous year.
In the fiscal fourth quarter, Thor reported net sales falling 28.4% from the fiscal fourth quarter of 2022. Earnings per share in the fiscal fourth quarter were down 67% from 2022’s fiscal fourth quarter.
Thor said the industry experienced a significant retail slowdown in fiscal 2023 as consumers were affected by elevated unit prices, higher interest rates and overall inflation.
“We remain cautious and continue to expect near-term demand to be materially impacted by the current macroeconomic conditions,” Thor said, “particularly in North America.”
Thor reported destocking about 39,500 RVs in the fiscal year, including 25,500 of those in the fiscal fourth quarter.
At the evening analyst meeting, Thor Chief Operating Officer Todd Woelfer said the manufacturer was in much better shape in terms of 2022 model year RVs than it was six months ago.
“We pushed through such a high percentage of the 22s that were there,” Woelfer said. “This was a much bigger concern two quarters ago, and we have been very focused, very aggressive and working with our dealers as reasonably as we can to get that product pulled through.”
Because Thor cut back on 2023 model year production, Woelfer said the percentage of aged inventory looks higher than it is.
“Where we sit right now,” he said, “it feels much different than where we did two quarters ago.”
President and CEO Bob Martin said the manufacturer’s Elkhart Extravaganza display was about 100 RVs down from previous years as the company was conscious of its footprint.
In addition, Thor declined to bring concert entertainment to its display during the week.
“These things cost money, and for us, right now, our focus is on the product and helping out dealers move aged inventory, and then focusing on the new,” Martin said. “Everything we are doing this year at Open House is product, consumer-focused, and so that is why you are not going to see a lot of frills.”
Martin said the models on display during the week have changed in recent years, pointing to the increased amount of Type B motorhomes offered.
“I saw it at Jayco’s dealer meeting earlier this year,” Martin said. “Jayco had a non-presence in Class Bs two and a half years ago. They have 10 floorplans and four models and are growing wildly in Bs. That is a younger customer. Those new buyers, they are buying smaller towables, Airstreams, but then also the adventure van.”
Thor Industries said the manufacturer expected to reduce its average wholesale pricing on 2024 model year RVs. The company said the savings would come through product decontenting/recontenting, material sourcing strategies and introducing new, value-enhancing RVs.
Woelfer said the company also was not going to spend “any significant money” on an acquisition anytime soon.
