Thor Industries Registers 22% Sales Decline In Q1 As Macro Headwinds Affect RV Market

Thor Industries Inc (NYSE: THO) reported a first-quarter FY23 net sales decline of 21.5% year-on-year to $3.11 billion, beating the consensus of $2.86 billion.
Net sales from the North American Towable RVs declined by 41.2% Y/Y, North American motorized RVs climbed by 21.5%, and European RVs decreased by 20.3%.
Gross profit margin fell 90 basis points Y/Y to 15.7%. Selling, general, and administrative expenses declined 18.3% Y/Y to $241.6 million.
Also Read: Thor Industries Hikes Dividend By 5%
As of October 31, 2022, the inventories amounted to $1.85 billion. The company held $291.7 million in cash and equivalents and generated $94.0 million in operating cash flow.
EPS of $2.53 beat the analyst consensus of $1.70.
"Following a record fiscal 2022, the RV market has been negatively affected by macroeconomic headwinds impacting our consumers and independent dealers," CEO Bob Martin said.
FY23 Outlook: Thor sees net sales of $11.5 billion - $12.5 billion against the consensus of $11.7 billion.
Thor sees EPS of $7.40 - $8.70, in line with the consensus of $8.15.
Price Action: THO shares closed lower by 1.23% at $84.00 on Tuesday.

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