- Outdoor lifestyle product manufacturer Winnebago Industries Inc WGO reported a second-quarter FY23 sales decline of 25.6% year-on-year to $866.7 million, beating the consensus of $806.94 million.
- Towable segment revenue fell 47% Y/Y to $342.5 million, driven by a decline in unit volume.
- Motorhome revenue of $403.8 million decreased 3.3% Y/Y. Marine segment revenue jumped 16.1% to $112.9 million.
- Gross profit decreased 32.2% Y/Y to $146.8 million, and gross profit margin contracted 170 basis points Y/Y to 16.9%.
- The operating margin contracted 280 basis points to 8.9%, and operating income for the quarter fell 43.9% to $76.8 million. Adjusted EBITDA decreased by 41.3% to $88.4 million.
- Adjusted EPS of $1.88 beat the analyst consensus of $1.25.
- Winnebago's cash and equivalents totaled $229.3 million as of Feb. 25, 2023. It generated $16.8 million in operating cash flow during the six months.
- As of Feb. 25, 2023, the company had total outstanding debt of $591.0 million.
- President and Chief Executive Officer Michael Happe commented, "Looking ahead, we will continue to actively manage and navigate a dynamic demand environment, with a continued focus on profitability through disciplined production and cost management, leveraging our highly variable cost structure, and by working closely with our dealer partners to balance and optimize inventory levels and product mix."
- Price Action: WGO shares are trading higher by 6.30% at $61.92 in premarket on the last check Wednesday.
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