Thor Q3 2021 Earnings Report
Key Takeaways
Thor Industries reported record results for the third fiscal quarter, with net sales of $3.46 billion, a 105.7% increase compared to the prior year. Earnings per share reached a record of $3.29, up 665.1% year-over-year. The company saw strong demand across all segments and increased production volumes to meet dealer demand, though supply chain constraints continue to pose a challenge.
Record net sales of $3.46 billion, up 105.7% year-over-year.
Gross profit margin improved by 240 basis points to 14.6%.
Record earnings per share of $3.29, a 665.1% increase year-over-year.
RV backlog increased to $14.32 billion, a nearly 550% increase over the prior year.
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Thor Revenue by Segment
Forward Guidance
The company expects continued robust demand for RVs and focuses on increasing capacity and maximizing production efficiencies. The RVIA projects a 33.8% increase in North American wholesale RV shipments for calendar year 2021. The number of units shipped depends on the ability to manage through global supply chain issues.
Positive Outlook
- Robust demand for RVs is expected to continue.
- RVIA projects a 33.8% increase in North American wholesale RV shipments for 2021.
- Increased interest in the outdoors and RV lifestyle is seen as a fundamental shift in consumer preferences.
- Growth in outdoor camping and RV rentals indicates a path to purchase for first-time RV buyers.
- Strong order backlog and historical trade-in cycle of RV owners reaffirm belief in sustainable demand.
Challenges Ahead
- Global supply chain issues may limit the ability to increase production.
- Raw material and commodity price fluctuations.
- Potential impact of the COVID-19 pandemic.
- Restrictive lending practices could negatively impact dealers and consumers.
- Increasing costs for freight and transportation.