Thor Q3 2022 Earnings Report
Key Takeaways
THOR Industries reported record financial results for its third fiscal quarter ended April 30, 2022. Net sales increased by 34.6%, net income attributable to THOR grew by 89.9%, and gross margin improved by 270 basis points compared to the fiscal third quarter of 2021.
Achieved record net sales and profitability across many brands.
Navigated supply chain and labor constraints effectively.
Independent dealer inventories of towable RV products were at more historically normal levels.
Decreased order backlog by more than 3% to $13.88 billion compared to the third fiscal quarter of 2021.
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Forward Guidance
The RV industry's calendar 2022 retail selling season has been impacted by current macroeconomic conditions. North American industry retail towable demand is anticipated to be lower than the historically high levels of recent quarters, it remains robust as enthusiasm for the RV lifestyle continues to grow.
Positive Outlook
- Enthusiasm for the RV lifestyle continues to grow.
- Motorized industry retail demand continues to outpace the industry’s ability to produce given the limitations on chassis supply.
- Industry retail registrations in the first calendar quarter of 2022 exceeded both 2020 and 2019 registrations in both North America and Germany.
- Retail demand for the remainder of our Fiscal Year 2022 and the beginning of Fiscal 2023 will be strong, barring additional macroeconomic impacts.
- Calendar year 2022 North American RV industry retail sales of between 460,000 and 480,000 units, which would represent one of the best years of North American RV retail sales on record.
Challenges Ahead
- The RV industry’s calendar 2022 retail selling season has been impacted by the current macroeconomic conditions faced by consumers.
- North American industry retail towable demand is anticipated to be lower than the historically high levels of recent quarters
- Motorized industry retail demand continues to outpace the industry’s ability to produce given the limitations on chassis supply.
- Based on the recent moderation of North American retail demand, the RV Industry Association (‘RVIA’) recently reduced its North American wholesale forecast for calendar year 2022 shipments to be between 537,800 and 561,900 units with a most likely total of 549,900 units.
- We agree with the revised lower end of the wholesale RVIA’s forecast, and we believe it is in alignment with our forecasted RV industry retail sales as a number of the wholesale units shipped so far this year were used to restock dealer towable inventories to more normalized levels.