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Apr 30, 2024
Thor Q3 2024 Earnings Report
Thor Industries executed its variable cost model, drove operating efficiencies, and performed relatively well in a difficult market.
Key Takeaways
Thor Industries reported Q3 fiscal 2024 results with net sales of $2.80 billion and earnings per share of $2.13. The company continues to manage production and work with dealers to maintain retail pull-through amidst challenging macroeconomic conditions.
Consolidated net sales were $2.80 billion, a decrease compared to $2.93 billion in the third quarter of fiscal 2023.
Gross profit margin increased to 15.1%, up 30 basis points from the prior year.
Net income attributable to THOR Industries was $114.5 million, with diluted earnings per share of $2.13.
The company generated strong cash from operations, exceeding $250.0 million, and paid down $161.4 million in debt while repurchasing 126,754 shares.
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
The company expects macroeconomic conditions to remain a headwind, with increased promotional activity impacting quarterly margins.
Positive Outlook
- Optimistic about global consumer interest in the RV lifestyle and long-term demand.
- Strong financial position enables THOR to meet current market challenges.
- Experience in managing through cycles creates opportunity for THOR.
- Benefit from being purely an RV company, focusing on maximizing performance in the market.
- Returning value to shareholders by investing in the business, managing debt conservatively, buying back shares, and raising the dividend.
Challenges Ahead
- Macroeconomic conditions remain a headwind to the markets.
- Introducing a new model year lineup, which requires focus on ensuring dealer inventory remains fresh.
- Operational discipline will not chase temporary market share gains that require excessive degradation to margins and the value of brands.
- The confluence of these factors will impact the fiscal fourth quarter.
- Prolonged market downturn has persisted longer than anticipated, impacting independent dealers and consumers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income