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Jan 31, 2020
Thor Q2 2020 Earnings Report
Thor Industries reported record second-quarter revenues, improved gross profit margin, and a growing order backlog.
Key Takeaways
Thor Industries announced strong second-quarter results with record revenues of $2.0 billion, a gross profit margin improvement of 180 basis points, and diluted earnings per share of $0.52. The company's performance was driven by increased sales in the North American Towable RV segment and the addition of net sales from the European RV segment. The company is closely monitoring Coronavirus.
Net sales for the second quarter were $2.0 billion, up 55.2% compared to the prior year.
Gross profit margin improved to 12.8%, an increase of 180 basis points year-over-year.
Diluted earnings per share increased to $0.52, compared to a loss of $(0.10) per diluted share in the prior year.
Independent dealer inventory levels in North America decreased by 16.5% year-over-year.
Thor
Thor
Thor Revenue by Segment
Revenue by Segment
NA Towable RVs Revenue
CapyFin.comNA Motorized RVs Revenue
CapyFin.comEuropean RVs Revenue
CapyFin.com Forward Guidance
Absent the uncertainties related to coronavirus, as we enter the peak selling quarters of our fiscal year in both North America and Europe, we are optimistic about our Company, our products and the global RV marketplace
Positive Outlook
- New Class B products are performing well at retail.
- Dealer inventories have largely rationalized and are building ahead of the peak selling season.
- Record attendance at several early-season RV consumer shows in North America and Europe.
- Germany, Europe's leading RV market, continues to report strong RV industry growth.
- Delivered solid results for the first half of the fiscal year.
Challenges Ahead
- Sharp increase in concern and market reaction related to the coronavirus.
- Potential effect on supply chains, particularly for materials sourced from China or other areas facing increased infection rates.
- Potential impact on domestic and global economies.
- Monitoring the situation on a daily basis and putting in place various action items, including travel limitations.
- Evaluating and arranging alternative supply sources for all critical parts with potential supply concerns.
Revenue & Expenses
Visualization of income flow from segment revenue to net income