Winnebago is pursuing numerous strategies to increase sales and market share, its company CEO said. The RV manufacturer is investing millions of dollars in systems and technologies and rolling out numerous 2024 models at lower average selling prices than previously offered.
Winnebago President and CEO Michael Happe said the company’s investments in information technology, enterprise resource planning, customer service phone systems, customer relationship management systems and financial systems totals eight figures—anywhere from $10 million to $99 million.
“The world is changing from a brick-and-mortar analog environment to more of an online digital world,” Happe said. “We are investing in numerous tools within our businesses that will help us compete effectively in the future from a digital engagement standpoint with consumers.”
Happe said when he joined the company in 2016, Winnebago did not have a modern IT system foundation. Today, he said the company is prioritizing its technology investments, including areas such as electric RVs and new product development.
Happe disclosed the investments when Winnebago announced 2024 fiscal first-quarter financial results.
Winnebago is introducing new RV price tiers. Lower-priced Winnebago Access and M-Series travel trailers are entering the 2024 market, joining Grand Design’s Reflection 100 and Influence fifth wheels.
Happe said Grand Design retail sales were positive in the fiscal first quarter, outpacing sales from 2023’s fiscal first quarter.
Happe said, “That is why we are reasonably optimistic about our ability to continue to hold and fight for market share in the future.”
Winnebago earned $763 million in net revenue in 2024’s fiscal first quarter. Net revenue decreased by 19.9% compared with $952.2 million in 2023’s fiscal first quarter.
Winnebago’s towable RV segment revenue totaled $330.8 million in 2024’s fiscal first quarter, down 4.8% compared with 2023’s fiscal first quarter. The towable RV segment earnings before interest, taxes, depreciation and amortization (EBITDA) was $33.1 million, down 8.8% from the same period a year before.
Motorhome segment revenue totaled $334.4 million in 2024’s fiscal first quarter, down 28% from the same period in 2023.
Winnebago reported positive dealer inventory numbers. At the end of 2024’s fiscal first quarter, under 5% of dealer inventory were 2022 models, with 40-45% were 2023 models.
“The RV numbers are a little bit lower in a positive way,” Happe said, “meaning we have less prior model year inventory.”
To maintain healthy inventory levels, Happe addressed dealer ordering patterns.
Happe said dealers are confident in getting products on their lots more quickly than in recent years. He said dealers should not get too aggressive on postponing orders and expecting them to quickly ship.
“I think we all have to be careful in the industry about how aggressive we get to that end on certain products,” Happe said, “particularly motorized but even a few of the towables.…There are elements of the supply chain which still just have longer lead times.”
Winnebago additionally reported commodity price shifts. Winnebago Chief Financial Officer Bryan Hughes said key commodity prices decreased, including aluminum and lumber prices. The price drops enable Winnebago to reduce prices to dealers and consumers.
“Overall, we maintain our bullish position on the future of the RV and marine industries,” Happe said, “and our brands will be well situated to participate strongly in the cyclical upswing when it occurs.”
