Thor Industries (NYSE: THO) reported Q2 EPS of $4.79, $1.40 better than the analyst estimate of $3.39. Revenue for the quarter came in at $3.88 billion versus the consensus estimate of $3.56 billion.

Outlook:

“We remain very optimistic about the growth of the RV industry for 2022 and in the long term,” Woelfer continued. “We continue to agree with the RV Industry Association forecast which projects total North American wholesale RV shipments ranging between 578,800 and 603,300 units with a most likely total of 591,100 units. This forecast represents the second best year on record for wholesale shipments and is in line with our continued bullish view of what lies ahead over the remainder of fiscal year 2022 and into fiscal year 2023. We are obviously aware of the current macro-economic and geopolitical events, including Russia’s invasion of Ukraine, that combine to create a litany of challenges that could affect the performance of virtually every company in the short term, however, our long-term outlook remains very bullish. THOR has consistently proven that the greatest strength of our business model is that it empowers us to remain nimble despite our size. In the event that the macro pressures eventually create a downturn, we expect THOR to outperform the market as it has in every downturn since its inception in 1980. Our model has enabled us to generate a profit in every year of our 41-year existence, even during the most difficult years for our industry and the economy more broadly. In fact, each time our industry has experienced such a downturn, THOR has come out stronger than it was before.

“THOR has delivered outstanding financial performance over the last six quarters, and at the same time has experienced some shift of market share. Our focus has been and will remain on creating sustainable margin improvements and volume improvements to drive continued growth and increased profitability. We have elected to not chase share at the risk of slippage in either quality or margins. We are in a market wherein most every RV produced by THOR and its competitors sells quickly. In this situation it is easy to fall into the trap of overproducing, but we chose to produce at a prudent rate to ensure profitable growth and greater quality during this period of very strong retail demand. The success of this approach is evident in our improving financial results. While we are aware of the bear case against THOR’s historical market share position, we believe that case is off the mark today. In the most recent calendar year-ended December 31, 2021, our total towable share did decline, but only by 0.4%, while both our margins and our volume of unit sales increased. Our choice to produce at a prudent rate to ensure greater quality drove better bottom line results. In North American motorized, we gained 3.3% of organic market share in calendar year 2021. In the hottest segment in the industry, Class B motorhomes, our organic growth was over four times that of our nearest competitor in calendar 2021 and we grew our unit sales by approximately 200%.

“Calendar year 2022 started strong for THOR as we grew our market share position in every category in which we participate. Our products have and will continue to perform well at the retail level. While we will continue to seek to regain share, we will first remain focused on prudently producing high-quality product to meet demand and reduce our backlog without overproducing and overloading our independent dealer channel. As I noted, we are focused on achieving continued growth and increased profitability. We believe this is the best strategy and expect this effort to deliver strong shareholder returns in Fiscal 2022 and 2023,” added Woelfer.

“Looking to the future, we are working on many strategic initiatives to drive increased shareholder value. An example of these initiatives is our eMobility strategy that we initiated several years ago. This strategy is an exciting plan to move THOR and the RV industry into the electric future. Our first step was the recent introduction of two new electric RVs, one towable and one motorized. Our motorized model, the THOR Vision Vehicle, is designed to deliver an industry-leading 300 mile range. The towable model, the eStream by Airstream, creates a whole new segment for the RV industry. The eStream creates the opportunity to maintain most of the towable range and gas mileage of the tow vehicle as it dramatically reduces the drag typically created when towing an RV. The eStream also offers a number of other compelling features, including the ability to park your RV using an app on your phone or tablet. We showcased these two new electric RVs at the 2022 Florida RV SuperShow, and the resulting feedback and media coverage has been phenomenal. THOR is focused on being the leader of the next generation of RVs as we drive to produce more sustainable solutions that maximize the RV user experience,” concluded Woelfer.

“The outlook for THOR and the RV industry continues to be very positive, and we believe our outstanding performance will continue for the balance of our fiscal year,” added Martin. “Consumer interest is at an all-time high as evidenced by record attendance and sales at the recent Florida RV SuperShow in Tampa, the largest RV show in the United States, and we see continued strong demand as we enter our peak selling season. This is an exciting time to be the world’s leading RV manufacturer, and we look forward to leveraging our position to grow our Company and advance the RV industry for many years to come.”

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