Thor Q1 2021 Earnings Report
Key Takeaways
Thor Industries announced strong first quarter fiscal 2021 results, with net sales increasing by 17.5% to $2.54 billion and net income attributable to THOR increasing by 122.8% to $113.8 million, or $2.05 per diluted share. The company's backlog continued to increase, setting a record, while dealer inventories continued to decline.
Net sales for the first quarter were $2.54 billion, an increase of 17.5%.
Consolidated gross profit margin for the first quarter was 14.9%, a 60 basis point improvement over the prior-year period.
Net income attributable to THOR for the first quarter increased 122.8% to $113.8 million, or $2.05 per diluted share.
Consolidated RV backlog as of October 31, 2020 was $8.92 billion, an increase of 194.5% over October 31, 2019.
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Thor Revenue by Segment
Forward Guidance
The RVIA expects an increase of 18.7% in calendar 2021 shipments over their most-likely estimate for calendar 2020 shipments.
Positive Outlook
- Financial results were very strong for the first quarter, despite the continued challenges faced as a result of the pandemic.
- Teams have done a great job of managing through what continues to be an uncertain operating environment.
- Expect to achieve continued growth in fiscal 2021 supported by the October 31st backlog of $8.92 billion.
- The long-term growth potential for the RV industry remains very positive.
- Believe there is potential for upside to the RVIA's forecast based on current industry conditions.
Challenges Ahead
- Continued challenges faced as a result of the pandemic.
- Uncertain operating environment.
- Current chain constraints are temporary in nature.
- Working hard to manage through temporary supply chain issues, which are currently common across the entire RV industry.
- It will take a number of months of production to first fill dealer presold orders before we will begin a restocking cycle to help our dealers get their inventory back to a more historically normal level.