Thor Industries Inc THO reported a fourth-quarter FY23 sales decline of 28.4% year-on-year to $2.74 billion, beating the analyst consensus of $2.42 billion.
The decrease in sales is primarily due to lower current dealer and consumer demand in comparison to record demand in the prior-year period, primarily in the North American Towable segment.
Net sales from the North American Towable RVs fell 48.2% Y/Y, North American Motorized RVs declined 36%, and European RVs increased 26.3%.
EPS of $1.68 beat the analyst consensus of $0.96.
Gross profit margin decreased 310 basis points Y/Y to 14.4%. Selling, general and administrative expenses fell 22.7% Y/Y to $209.6 million.
As of July 31, 2023, the inventories amounted to $1.6 billion. The company held $441.2 million in cash and equivalents as of July 31, 2023. Operating cash flow for the quarter totaled $507.5 million.
"Fiscal 2023 presented a series of challenges as a result of higher interest rates, rising inflation, increased economic uncertainty, ongoing supply chain constraints and geopolitical issues," said CEO Bob Martin.
Outlook: Thor sees FY24 sales of $10.5 billion - $11 billion against the consensus estimate of $10.81 billion.
It expects FY24 EPS of $6.25 - $7.25 versus the consensus estimate of $7.12.
The company sees FY24 gross profit margin in the range of 14.5% to 15.0%.
In addition, the company said it remains committed to achieving its fiscal 2027 financial targets.
Price Action: THO shares closed higher by 2.03% at $94.82 on Monday.
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