Key Takeaways
- Airstream parent Thor Industries cut costs and inventories in the fourth quarter, helping the RV maker beat profit and sales forecasts.
- The company’s gross profit margin increased 140 basis points from 2023.
- Thor’s COO predicted a rebound in the slumping RV industry “in the latter half of calendar 2025 and the beginning of our fiscal 2026.”
Airstream parent Thor Industries (THO) shares jumped Tuesday when the maker of recreational vehicles (RVs) reported better-than-expected results and gave a positive longer-term outlook as it controlled costs and inventory.
The company posted fourth-quarter earnings per share (EPS) of $1.68, easily beating the $1.28 average estimate of analysts surveyed by Visible Alpha. Revenue fell 7.4% year-over-year to $2.53 billion, but that also exceeded forecasts.
Gross profit margin jumped 140 basis points (bps) to 15.8%, boosted by a favorable last in, first out (LIFO) inventory adjustment that came about by reductions in inventory levels and an improved warranty cost percentage.
CEO ‘Very Optimistic’ About Consumer Interest in RV Lifestyle
Thor Chief Executive Officer (CEO) Bob Martin said that the company continued to “navigate the persistent challenges in the industry’s retail environment,” adding that the macroeconomic headwinds faced by dealers and consumers “have been an impediment to our industry for an extended period of time.” Still, he explained that Thor continues “to be very optimistic about global consumer interest in the RV lifestyle and long-term demand for our products.”
Chief Operating Officer (COO) Todd Woelfer noted that while Thor expects weakness to continue through fiscal year 2025, it sees “a stronger retail environment in the latter half of calendar 2025 and the beginning of our fiscal 2026.”
The company anticipates fiscal 2025 EPS of $4.00 to $5.00, and revenue of $9.0 billion to $9.8 billion. Analysts had been looking for $6.14 and $10.47 billion, respectively.
Shares of Thor Industries were up more than 6% to $109.68 in early afternoon trading but are down about 7% for 2024.
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