Thor Industries (NYSE:THO) shares moved higher as it reported mixed first-quarter fiscal 2024 financial results, including earnings that topped Wall Street estimates.
Shortly after reporting its results, shares of the RV maker had gained 2.4% at US$105.50.
For 1Q, the three months ended October 31, 2023, Thor Industries posted earnings per share (EPS) of $0.99, topping expectations of $0.87 but down from $2.53 in the year-ago quarter.
However, it reported a year-over-year decline in sales from $3.11 billion to $2.5 billion, missing estimates of $2.51 billion.
The company noted that it continues to navigate the “prolonged challenging RV environment in North America,” working to drive down its prices to reflect current market demand.
“As anticipated, independent dealer destocking efforts in North America and seasonally lower first quarter production within our European segment impacted our unit shipment volumes during the quarter,” Thor Industries CEO Bob Martin said in a statement.
“Despite this, our fiscal 2024 first quarter financial performance demonstrates the collective efforts of our operating companies to prioritize profitability in a soft demand environment.”
The company also reaffirmed its full-year sales, gross profit margin and EPS guidance ranges of $10.5 billion to $11 billion, 14.5% to 15%, and $6.25 to $7.25 respectively.
“We continue to work closely with our independent dealer partners to monitor retail trends and adjust production accordingly to ensure channel inventory remains appropriate during the retail offseason months,” CEO Martin said.
“At the same time, we remain focused on solid operational execution to enhance our gross profit margin performance in fiscal 2024 and generate solid cash flow to drive long-term shareholder value.”
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