Thor Industries' Demand Slowdown To Affect Revenue & Margins In FY23, Says Analyst

Raymond James analyst Joseph Altobello reiterated an Underperform rating on the shares of Thor Industries Inc THO.
The analyst noted THO's generally healthy Q4 results, as sales were largely as expected, while weakness in towable margins was more than offset by strength in motorized and Europe.
Related: Thor Industries Posts Q4 Earnings Above Street View
Altobello noted that Thor's quarter-end backlog at $8.8 billion was down 48% Y/Y, and the North America dealer inventory rose 118% Y/Y.
He also mentioned the company's concern about heightened near-term macroeconomic/demand uncertainty as well as likely downward margin pressures from reduced volumes, increased promotional activity, and cost inflation.
Altobello's rating reflects his view that though industry fundamentals remain healthy and the company's execution has been solid, the rapid recovery in dealer inventories coupled with the ongoing slowdown in demand will ultimately put downward pressure on revenue and margins in FY23.
Price Action: THO shares are trading lower by 9.36% at $67.69 on the last check Thursday.