Shares of Thor Industries Inc. (THO) suffered a decline in after-hours trading on Monday following the company’s disappointing full-year profit and sales forecast. In addition, management expressed their expectation for subdued consumer demand to persist in the months ahead.
Despite FactSet’s projected full-year sales of $10.86 billion and earnings per share of $7.12, Thor Industries anticipated lower numbers. The company provided a forecast with sales ranging from $10.5 billion to $11.0 billion and earnings per share between $6.25 and $7.25.
RV Industry Shifts
The COVID-19 pandemic initially fueled a surge in outdoor activity and, consequently, boosted demand for recreational vehicles (RVs). However, the industry is now grappling with a decline in RV demand, prompting adjustments to business strategies.
Fourth-Quarter Report Highlights
Thor Industries reported a steep drop in net income for the fiscal fourth quarter. Compared to $281.8 million, or $5.15 per share, in the same period last year, the company earned $91.3 million, or $1.68 per share. Revenue for the quarter also decreased from $3.82 billion to $2.74 billion.
Analysts surveyed by FactSet had anticipated Thor Industries to report earnings per share of 95 cents on sales amounting to $2.43 billion.
Eyeing the Future
Chief Executive Bob Martin acknowledged the mixed economic data and consumer trends that are expected to persist throughout fiscal 2024. Despite these challenges, Martin affirmed that Thor Industries would adopt a disciplined approach to production planning, aiming to effectively manage costs and position itself for a potential industry rebound.