By Dhirendra Tripathi
Investing.com – Thor Industries stock (NYSE:THO) climbed 8% Wednesday after it comfortably beat sales and profit estimates in the second quarter.
At the end of January, the company’s order backlog was higher by 60% at nearly $18 billion on strong demand for its recreational vehicles as people return to enjoying their lives after two years of the pandemic. Additionally, backlog fell while consolidated RV wholesale shipments rose more than 14%.
The company said it is looking to reduce its order backlog “without overproducing and overloading our independent dealer channel” even as it sees strong retail demand for its products. Thor showcased two new electric RVs at the 2022 Florida RV SuperShow and said the feedback “has been phenomenal”. Thor said it is focused on growth and higher profitability.
Gross margin in the second quarter rose 2.2 percentage points to 17.4% due to lower discounts and higher product prices that helped offset inflation in raw materials, the company said.
Consolidated net sales in the quarter jumped over 42% to $3.9 billion, partly due to the acquisitions the company made last year.
The addition of the Tiffin Group, acquired in December 2020, accounted for over $132 million of the increase in net sales while the inclusion of Airxcel, acquired in September 2021, contributed about $129 million.
Adjusted profit per share more than doubled to $4.79.