Continued weakness in the motorhome market coupled with a “shift toward lower-priced products” by consumers cut into earnings and sales during Winnebago Industries Inc.’s second quarter and six months, ended Feb. 25.
“Revenues and net income for the quarter and first six months were negatively impacted primarily by lower motorhome deliveries as a result of decreased industry retail demand,” said Bruce Hertzke, chairman and CEO for the Forest City, Iowa-based motorhome builder. “We were also impacted by a shift towards lower-priced motorhome products. This shift in product mix is occurring industrywide.”
Sales during the second quarter totaled $206.4 million, a decrease of 13.8% compared to $239.4 million the previous year, while net income declined 38.7% to $7.7 million from $12.6 million.
For the six months, revenues fell 13.2% to $438.7 million compared with $505.5 million a year ago as net income declined 30.7% to $22.3 million from $32.1 million.
Winnebago noted that earnings during the quarter and six months included a stock option expense.
The company said its sales order backlog was 1,581 units at Feb.25 compared to the backlog of 2,108 units the year prior, reflecting “a shift in the mix of products on order by our dealer partners to lower-priced motorhomes,” according to Hertzke.
He said the company’s introduction of the new “fuel efficient” Winnebago View and Itasca Navion minimotorhomes “was particularly timely and continues to have a positive impact on our Class C backlog.”