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May 30, 2020
Winnebago Q3 2020 Earnings Report
Winnebago's Q3 2020 results were impacted by the COVID-19 pandemic, with revenue decreasing, but the company focused on employee safety and saw positive retail momentum in June.
Key Takeaways
Winnebago Industries reported a decrease in revenue for the third quarter of fiscal year 2020 due to the COVID-19 pandemic. Revenues were $402.5 million, a decrease of 23.9% compared to the prior year. The company experienced a net loss of $12.4 million, compared to a net income of $36.2 million in the same period last year.
Revenues for the quarter were $402.5 million, a decrease of 23.9% compared to the prior year.
Net loss for the quarter was $12.4 million, compared to a net income of $36.2 million in the same period last year.
North American RV retail market share was 11.7% on a trailing three-month basis through April, 2020, up 1.7 share points over the same period last year.
Liquidity remained strong with cash balances rising during the quarter to $152.5 million.
Winnebago
Winnebago
Forward Guidance
Winnebago is optimistic about the recovery path due to strong demand rebound in May and positive trends continuing this summer. Retail and wholesale demand for outdoor recreation products are both recovering.
Positive Outlook
- Strong demand rebound witnessed in May.
- Positive trends continuing this summer.
- Retail and wholesale demand for outdoor recreation products are both recovering.
- People are increasingly looking toward RVing and boating as ways to socially distance.
- Winnebago Industries’ RV, Marine, and Specialty Vehicles brands and businesses remain poised for strong growth.
Challenges Ahead
- Company's results were impacted by the unprecedented series of events related to the COVID-19 pandemic.
- Manufacturing operations were suspended.
- Disruptions across its dealer network.
- Disruptions across its supply chain.
- Disruptions to end consumers occurred during most of the quarter.