Winnebago Industries Beats On Q1; Clocks ~18% Top-Line Decline As Towable Segment Revenue Halves

Winnebago Industries Inc WGO reported a first-quarter FY23 sales decline of 17.6% year-on-year to $952.20 million, beating the consensus of $857.31 million.
Towable segment revenue fell 46.7% Y/Y to $347.3 million, driven by a decline in unit volume.
Motorhome revenue of $464.2 million increased 10.1% Y/Y. Marine segment revenue jumped 65.7% to $131.4 million.
Gross profit decreased 30.1% Y/Y to $160.4 million, and gross profit margin contracted 300 basis points Y/Y to 16.8%.
Operating margin contracted 370 basis points to 9%, and operating income for the quarter fell 41.3% to $85.9 million. Adjusted EBITDA decreased by 42% to $97 million.
Adjusted EPS of $2.07 beat the analyst consensus of $1.80.
Winnebago's cash and equivalents totaled $271.7 million as of November 26, 2022, and it generated $29.9 million in operating cash flow in the quarter.
"While we expect uncertain market conditions to continue to persist into calendar year 2023, we will remain disciplined on our business operations while still making smart investments in profitable differentiation for our future," said CEO Michael Happe.
Price Action: WGO shares are trading higher by 1.79% at $56.75 in premarket on the last check Friday.
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