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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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