Winnebago Industries Reports 18% Revenue Decline and Net Loss in Latest Quarter

Winnebago Industries, Inc. reported a significant decline in financial performance for the three months ended November 30, 2024, with net revenues of $625.6 million, down 18% from $763.0 million in the same period last year. The company experienced a gross profit of $76.8 million, a decrease of 33.7% compared to $115.8 million in the prior year. This decline in profitability resulted in a net loss of $5.2 million, or $(0.18) per diluted share, contrasting sharply with a net income of $25.8 million, or $0.78 per diluted share, in the previous year.

The decrease in revenue was attributed primarily to lower unit volumes and a reduction in average selling prices, influenced by product mix changes. The cost of goods sold also decreased, but at a slower rate than revenues, leading to a gross profit margin contraction. Operating expenses rose slightly to $77.7 million from $76.7 million, driven by strategic investments despite ongoing cost containment efforts. The company’s interest expense increased by 43.4% to $5.8 million, further impacting the bottom line.

In terms of operational developments, Winnebago established a new operating segment for Grand Design motorhomes, reflecting its entry into the motorized RV category. This strategic move is part of the company's broader efforts to diversify its product offerings. The company reported a total of 6,616 unit deliveries in the Towable RV segment, a decrease of 15.7% from the previous year, while the Motorhome RV segment saw a 17.4% decline in unit deliveries. However, the Marine segment experienced a slight increase in revenues, attributed to targeted price increases and higher unit volumes.

Winnebago's balance sheet showed total assets of $2.298 billion as of November 30, 2024, down from $2.384 billion at the end of the previous fiscal year. The company maintained a cash position of $262.5 million and had no borrowings against its $350 million asset-based revolving credit facility. The company’s working capital decreased to $556.1 million, reflecting the impact of reduced sales and inventory management strategies. Looking ahead, Winnebago anticipates that consumer demand for RVs and marine products will stabilize as it enters the spring selling season, although it remains cautious due to ongoing macroeconomic challenges such as inflation and elevated interest rates.