EDEN PRAIRIE, Minn. - Winnebago Industries (NYSE: WGO ) reported disappointing first quarter results that fell short of analyst estimates, sending shares down 5.6% in early trading.
The recreational vehicle maker posted an adjusted loss of $0.03 per share for the quarter ended November 30, missing the consensus estimate for earnings of $0.22 per share. Revenue declined 18% YoY to $625.6 million, also below expectations of $690.94 million.
Winnebago cited challenging market conditions in the RV and marine sectors, with subdued consumer demand and cautious dealers reluctant to place new orders ahead of the slow winter season.
"These industry challenges highlight the critical importance of our strategic focus on disciplined production, effective cost management and targeted investments in new products and technologies," said CEO Michael Happe.
The company narrowed its full-year earnings guidance while maintaining the midpoint. Winnebago now expects fiscal 2025 adjusted EPS of $3.10 to $4.40, compared to its prior range of $3.00 to $4.50. Revenue is still projected between $2.9 billion and $3.2 billion.
Despite the weak quarter, management expressed confidence in an anticipated market recovery in the second half of fiscal 2025 as the spring selling season approaches. Happe noted encouraging retail trends in October and increasing consumer confidence as positive indicators.
Winnebago repurchased $30 million of shares during the quarter as part of its capital allocation strategy.
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