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Winnebago shares driven lower by 4Q revenue miss

Published 2023-10-18, 12:12 p/m
© Reuters.  Winnebago shares driven lower by 4Q revenue miss
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Proactive Investors - Winnebago Industries (NYSE:WGO) handed down its fourth quarter financial results reporting a year-over-year decline in both sales and profits amid tough consumer conditions.

The maker of outdoor lifestyle products including its iconic motorhomes reported revenue for the quarter ended August 26, 2023, of $771 million, down 34.6% from $1.2 billion in the year-ago quarter.

This also fell short of Wall Street analysts’ expectation of $774.5 million.

The company attributed the decrease to lower unit sales related to current market conditions, dealer efforts to reduce inventories, and higher discounts and allowances compared to the previous year.

However, adjusted earnings per share (EPS) of $1.59 topped estimates of $1.32, per Zacks Investment Research. This represented a decrease of 47.4% from the year-ago quarter.

Full-year fiscal 2023 revenue was in line with expectations at $3.5 billion, down 29.6% from $5 billion in the previous financial year.

Adjusted EPS was $7.67, above the Street estimate of $7.39, but a significant decrease from fiscal 2022’s adjusted EPS of $13.81.

“While the consumer market continues to be challenged and our fourth quarter results reflect a stubborn retail environment, we continued to see the benefits of our diversified portfolio on our results for the fiscal year,” Winnebago CEO Michael Happe said.

Winnebago shares fell following its earnings release, down 2.6% at about US$57.

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