Thor Industries Misses Q1 Estimates Amid Recreational Vehicle Market Weakness, But Optimistic About H2 Recovery

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Thor Industries Misses Q1 Estimates Amid Recreational Vehicle Market Weakness, But Optimistic About H2 Recovery

Thor Industries, Inc. (NYSE: THO ) shares are trading lower premarket on Wednesday.

Quarterly sales of $2.143 billion, down 14.3% year over year, missed the analyst consensus of $2.241 billion.

The company reported first-quarter EPS of $(0.03) versus $0.99 prior year. Adjusted EPS of $0.26 missed the consensus of $0.71 .

North American Towable RV net sales were down 4.9% Y/Y, North American Motorized RV net sales decreased 29.0%, and European RV net sales decreased 14.6% in the quarter.

Quarterly gross profit margin contracted by 120 basis points to 13.1%. Thor Industries exited the quarter with cash and equivalents worth $445.2 million. Inventories as of quarter end totaled $1.37 billion.

Bob Martin, President and CEO, said, “As we forecasted, our performance through the first quarter of our fiscal year 2025 continued to be impacted by the soft retail and wholesale environment.”

“Barring further future macroeconomic headwinds, it is our expectation that retail activity will begin to trend positively in the latter half of our fiscal 2025, particularly in North America, where we anticipate the return of a stronger retail market,” added Martin.

Outlook: Thor Industries reiterated FY25 sales of $9.0 billion – $9.8 billion, compared to the $9.617 billion estimate, and EPS of $4.00 to $5.00, vs. the estimated $5.04 .

Todd Woelfer, Senior Vice President and Chief Operating Officer, added, “Our initial view of fiscal year 2025 forecasted for challenging first and second quarters driven by the difficult markets and a return to a more normal cadence of operating results in Europe following a record fiscal 2024, with particular challenges facing our North American Motorized segment.”

”As we look to the remainder of the fiscal year, we continue to believe that our initial forecast for our fiscal year 2025 is an accurate assessment of the RV industry for the next nine months. For our performance, this means that we anticipate a challenging second quarter but stronger quarters in our fiscal second half.”

Price Action: THO shares are down 5.06% at $103.00 premarket at the last check Wednesday.

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This article Thor Industries Misses Q1 Estimates Amid Recreational Vehicle Market Weakness, But Optimistic About H2 Recovery originally appeared on Benzinga.com

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