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After this morning’s volatility, Winnebago (NYSE:WGO) shares are regaining their upward momentum and were last trading at a 2 ½ week high as investors react positively to the company’s remarks about future growth and sales projections for 2024.
Before Thursday’s open, the company reported mixed results for Q4 which included an 18.8% drop in sales and 43.7% decline in adjusted EBITDA in what the CEO referenced as the “ongoing softness in the RV and marine markets.”
“As anticipated, wholesale shipments were constrained in the quarter, as dealers continued to closely manage inventory levels amid a higher interest rate environment and seasonal demand trends,” CEO Michael Happe said.
Within the company’s divisions, towable RV, marine, and motorhome RV all saw sales fall in the current quarter from a year ago with the marine division suffering the most significant decline of 38.2% (versus -17% for towable RV, and -16.2% for motorhome RV).
Recognizing the challenges faced by the RV industry stemming from higher interest rates and consumers’ apprehension to spend on big-ticket items, the company remained confident in its ability to provide strong EBITDA expansion despite weakness in the marine category.
For fiscal year 2024, Winnebago (WGO) expects gross margin to expand 230 basis points and revenue to be between $4.5B to $5.0B compared to 2023 revenue of $3.5B.
Winnebago's (WGO) upbeat outlook for the RV market, amplified by the dovish outlook for interest rates following Wednesday's FOMC meeting, buoyed shares within the sector with Thor Industries (THO) up 4%, LCI Industries (LCII) higher by 3%, and Camping World (CWH) gaining 1.2%.