THOR Industries Q3 Fiscal 2024 Sales Drop to $2.80 Billion

Thor Industries, Inc. (NYSE: THO) has released its financial results for the third fiscal quarter ended April 30, 2024. The company reported consolidated net sales of $2.80 billion for the third quarter, compared to $2.93 billion for the same period in the previous fiscal year. The consolidated gross profit margin for the third quarter of fiscal 2024 was 15.1%, representing an increase of 30 basis points compared to the third quarter of fiscal 2023.

In terms of segment results, the North American towable RVs saw a 4.7% decline in net sales for the third quarter of fiscal 2024, while the gross profit margin remained at 12.9%. The income before income taxes for this segment was $68.4 million, down from $77.6 million in the third quarter of fiscal 2023.

For the North American motorized RVs, the net sales decreased by 18.7% in the third quarter of fiscal 2024, with a gross profit margin of 11.1%. The income before income taxes for this segment was $33.2 million, down from $48.2 million in the prior-year period.

In contrast, the European RVs experienced a 7.4% increase in net sales for the third quarter of fiscal 2024. The gross profit margin remained constant at 17.5%, with income before income taxes reaching $77.4 million, compared to $72.4 million in the third quarter of fiscal 2023.

Despite the challenging market conditions, Thor Industries remains confident in the long-term outlook for the industry. The company revised its full-year fiscal 2024 guidance, now expecting consolidated net sales in the range of $9.8 billion to $10.1 billion, a gross margin range of 13.75% to 14.0%, and diluted earnings per share in the range of $4.50 to $4.75.

Thor Industries also highlighted its strong cash generation, exceeding $250.0 million of cash from operations, and its liquidity of approximately $1.37 billion as of April 30, 2024. The company continued to execute its capital allocation strategy by paying down debt and repurchasing shares.

Looking ahead, the company anticipates that the challenging retail environment will impact its fiscal fourth quarter. Despite the near-term challenges, Thor Industries remains optimistic about global consumer interest in the RV lifestyle and long-term demand for its products.

In response to the prolonged market downturn, the company has revised its fiscal 2024 guidance to reflect the impact of macro challenges on independent dealers and consumers, adjusting its shipment range and lowering its guidance ranges for consolidated net sales, gross profit margin, and diluted earnings per share.

As the company navigates the dynamic market, its financial strength and robust cash generation profile position it to perform well relative to market conditions and to execute on its long-term strategic plan.

The market has reacted to these announcements by moving the company's shares 0.7% to a price of $96.65. Check out the company's full 8-K submission here.

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