Editor’s Note: Robert W. Baird & Co. issued a client newsletter to investors following the April towable sales report from Statistical Surveys Inc. The following offers a summary of the results.

U.S. towable retail down in April. Dealer towable sales fell 2% in April, according to Statistical Surveys, following strong growth in February and March (keep in mind data is frequently revised upward). A mild winter and early start to spring supported demand early in the year, and could have pulled forward some demand from April.

Towable demand down 2%. U.S. towable sales dropped 2% in April. Travel trailer registrations were flat, and fifth-wheel sales fell 7%.

Inventory. Dealers stocked towable product relatively aggressively ahead of the selling season, increasing channel inventory, but dealers tell us overall inventory levels remain appropriate. We believe seasonal restocking is essentially complete, and look to spring demand to determine orders into summer.

Retail U.S. SAAR. We calculate a seasonally adjusted rate of retail registrations. The SAAR of U.S. towable demand (including fifth-wheels and travel trailers) fell to 173K units in April, from 178K units in March. Just over 160K units were sold in the U.S. in 2011.

This summary of a Baird research report is not intended as investment advice. To participate in Baird surveys and receive research reports, contact Craig R. Kennison, CFA, at [email protected]