ELKHART, Ind. - Thor Industries , Inc. (NYSE: NYSE:THO), a leading manufacturer of recreational vehicles, reported a significant miss in its fiscal second-quarter earnings and revenue, sending its shares down 14.71% as investors reacted to the weaker-than-expected financial performance.
The company posted earnings per share (EPS) of $0.13 for the quarter, falling short of analysts' expectations of $0.68. Revenue also came in below consensus estimates, at $2.21 billion compared to the anticipated $2.26 billion. This revenue represents a decline from the $2.35 billion reported in the same quarter last year.
Thor's President and CEO, Bob Martin, attributed the disappointing results to cautious dealer sentiment and lower retail demand, which have been exacerbated by the rapid increase in interest rates over the past year. Martin noted that while the company is navigating a challenging operating environment, they remain focused on improving their competitive positioning and providing support to their independent dealer partners.
Despite the quarterly shortfall, Thor Industries revised its full-year fiscal 2024 guidance, now expecting consolidated net sales to range between $10.0 billion and $10.5 billion, with diluted EPS between $5.00 and $5.50. This updated guidance is lower than the previous forecast, reflecting the company's cautious outlook amid persistent market challenges.
The company's management remains confident in their ability to navigate the current market conditions, citing their disciplined operating approach and strong balance sheet. Colleen Zuhl, Senior Vice President and Chief Financial Officer, emphasized Thor's financial strength and cash generation abilities, which provide the flexibility to support long-term strategic plans.
As Thor Industries prepares for the prime retail selling season, they anticipate dealers will continue to manage inventory levels tightly until retail demand firms. The company plans to maintain a prudent focus on operational execution, optimizing their product portfolio, and managing costs as they move into the second half of the fiscal year.
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