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Jul 31, 2020

Thor Q4 2020 Earnings Report

Net sales increased, gross profit margin improved, and earnings per share increased for the fourth quarter of fiscal 2020.

Key Takeaways

Thor Industries reported increased net sales of $2.32 billion, improved gross profit margin of 14.9%, and higher earnings per share of $2.14 for the fourth quarter of fiscal 2020. The company also reported a record backlog of $5.74 billion at the end of fiscal year 2020.

Net sales for the fourth quarter were $2.32 billion.

Fourth-quarter results include $1.55 billion in North American RV net sales and $739.9 million in European RV net sales.

Consolidated gross profit margin for the fourth quarter was 14.9%, a 0.5% improvement over the prior year.

Net income attributable to Thor for the fourth quarter was $119.2 million, or $2.14 per diluted share.

Total Revenue
$2.32B
Previous year: $2.31B
+0.5%
EPS
$2.14
Previous year: $1.7
+25.9%
Gross Margin
14.9%
Previous year: 14.4%
+3.5%
Gross Profit
$347M
Previous year: $332M
+4.7%
Cash and Equivalents
$541M
Previous year: $426M
+27.2%
Total Assets
$5.77B
Previous year: $5.66B
+2.0%

Thor

Thor

Thor Revenue by Segment

Forward Guidance

Thor Industries anticipates continued growth in fiscal year 2021, aligning with RVIA's forecast of an approximate 19.5% increase in calendar 2021 shipments over the estimated calendar 2020 shipments. The company is working to manage supply chain constraints and remains positive about the short-term and long-term outlook.

Positive Outlook

  • Strong balance sheet
  • Record backlogs
  • Dealer inventories at historic lows
  • Considerable interest in the RV lifestyle from first-time buyers
  • Continued strength in the upgrade buyer

Challenges Ahead

  • Challenges and constraints in the supply chain
  • Suppliers ramping up to meet the unexpectedly high level of demand from manufacturers
  • Potential impacts to production schedules
  • Managing through peaks and valleys of demand and supply constraints
  • Temporary supply chain issues