Winnebago earnings down for quarter; RV market share increases
BUSINESS RECORD STAFF Mar 25, 2020 | 3:51 pm
1 min read time
215 wordsAll Latest News, Banking and FinanceWinnebago Industries Inc. reported fiscal second-quarter net income of $17.3 million, a 20% decrease from the prior-year quarter, as reported earnings per share dipped 25% for the quarter to 51 cents, down from 68 cents for the year-ago quarter. The manufacturer’s gross profit increased 20.1% to $79.8 million, compared with $66.4 million for the 2019 period, but gross profit margin slipped by 270 basis points in the quarter, the company reported. The decrease was primarily driven by factors related to its acquisition of Newmar Corp. and startup costs associated with new production facilities in its towables segment. CEO Michael Happe said the company’s top-line revenue growth continues to outperform the industry. “Our more diversified, full-line of products continues to drive higher margins within the Motorhome segment and accelerate our market share gains,” he said in an earnings release. “Winnebago Industries’ North American RV retail market share is 13.2% on a trailing three-month basis through January, 2020, up 2.6 share points (up 1.8 share points on an organic basis) over the same period last year.” Earlier this week, Winnebago temporarily suspended production across each of its businesses through April 12 due to the coronavirus pandemic. “We have seen significant change in mid-March for the demand of our products by both consumers and dealer partners,” Happe said.