Why Skyline Champion (SKY) Shares Are Diving Today - Skyline Champion (NYSE:SKY)

Factory-built housing company Skyline Champion Corporation SKY reported the fourth quarter FY23 sales of $491.53 million, missing the consensus estimate of $528.22 million. Net sales decreased 23% year over year.
Earnings per share decreased 33.8% to $1.00, beating the analyst consensus of $0.93.
The number of U.S. homes sold in 4Q decreased 25.5% to 4,900 Y/Y.
Volume levels during the quarter were adversely impacted by retailer inventory destocking which drove lower order rates and reduced production.
Gross profit decreased by 26.1% Y/Y to $141.15 million in 4Q. Gross profit margin contracted by 120 basis points to 28.7%, dragged by lower volumes and demand in certain markets.
Net income decreased by 33.5% to $57.75 million owing to lower sales.
The total backlog for Skyline Champion was $308 million as of April 1, 2023, compared to $532 million at the end of 3Q.
"While backlogs continue to normalize, the current housing environment creates an opportunity for Skyline Champion to continue to outperform," said Mark Yost, Skyline Champion's President and Chief Executive Officer.
The company exited the 4Q with cash and equivalents worth $747.45 million.
For FY23, net sales were $2.6 billion, which represents an increase of 18.1% Y/Y. Net sales growth was primarily driven by higher average selling prices per home and $200 million of disaster relief housing revenue recorded in the first half of the fiscal year.
Price Action: SKY shares are trading lower by 10.38% to $57.82 on the last check Tuesday.

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Why Skyline Champion Shares Are Diving Today