EDEN PRAIRIE, MINNESOTA — A continued stubborn retail environment continues to be blamed for a downturn in revenue for Winnebago Industries.
The outdoor lifestyle products manufacturer with Iowa recreational vehicle factory locations in Forest City, Lake Mills, Charles City and Waverly today reported fiscal year first-quarter revenue was $763 million, a decrease of almost 20% compared to the first quarter of last year.
Winnebago CEO Michael Happe says his company knew heading into the fiscal year that there were many obstacles ahead. “As we entered our Fiscal 2024 year this past September, the outdoor recreation market in North America continued to face numerous short-term challenges. Consumer confidence was unsteady given macroeconomic factors. Affordability of the RV and boating lifestyle, while still competitive with other forms of leisure travel, had become difficult for potential new customers, and dealers were aggressively managing inventory by constraining inbound wholesale shipments.”
Happe says those challenges will continue into the company’s second quarter. “We believe continued strong wholesale constraints during a seasonally-lighter retail period of the year in December through February, and subsequent further reduced production by our businesses over the holidays will also have a similar impact on Q2 financial results as well.”
Gross profit for the quarter was $115.8 million, down 28% when compared to the same quarter last year.