Winnebago Industries says it is gaining market share in the booming RV market as consumers continue to engage in all manner of outdoor activities.
The company — which is based in Forest City, Iowa, but has management offices in Eden Prairie — reported revenue of $960.7 million for its third quarter that ended May 29.
That was a 139% increase over the same quarter a year ago, when the company was hit hard by how the pandemic changed the economy. The results also showed a 14.4% sequential increase over its second quarter, as revenue continued to improve each quarter from the year-ago period driven by continued consumer interest.
"We capitalized on the prime spring selling season to gain share and drive higher consumer engagement, further cultivating our pipeline of lifelong customers," said Winnebago Chief Executive Michael Happe in a statement.
Net income for the third quarter was $71.3 million, or $2.05 per share, compared to a loss of $12.4 million, or 37 cents per share, in the third quarter of last year. In the year-ago quarter, production was shut down for six weeks due to pandemic-mandated actions.
Consolidated adjusted earnings per share were $2.16 per share, up from the loss of 26 cents per share, and exceeding analysts' expectations of $1.77 per share.
The industry as a whole is working to meet increased demand from consumers. Dealer inventories were depleted in the last year and there is a growing backlog of orders. Winnebago said it has a record backlog that increased 18.2% from the second quarter.
Winnebago's biggest challenge is to meet the increased demand from consumers and dealers while dealing with supply chain issues. Happe told analysts on the company's earnings call that the supply chain shortages aren't getting any worse but remain "consistently inconsistent."
"We remain focused on working with our suppliers to sustain strong levels of production and with our dealer network to replenish their inventories in the face of record backlog," Happe said in the statement.
Third quarter results were strongest in the towable segment that includes travel trailers and fifth-wheel options under the Grand Design and Winnebago brands. Revenue for the segment was $555.7 million, up 194%, with the number of travel trailers delivered up 214% to 11,089 units in the quarter, compared with 3,537 units last year.
Motorhome revenue was up 89% to $385.3 million in the quarter with 2,727 units delivered from the Winnebago and Newmar brands.
Winnebago approved its usual quarterly dividend. It will pay a 12 cent per share dividend on June 30, to shareholders of record on June 16.
Shares of Winnebago dipped some in the morning but came back to close the day at $66, down 54 cents.
