Despite financial impact of pandemic shutdown, Winnebago Industries says future bright as people turn to recreational products during economic recovery

FOREST CITY — Winnebago Industries says the shutdown and restart of their operations due to the COVID-19 pandemic impacted them financially in the most recent quarter, but the near future should be bright as people are turning to recreational products like motorhomes during the economic recovery. The Forest City-based outdoor lifestyle manufacturer today reported a fiscal third-quarter net income loss of $12.4 million after reporting a $36.2 million profit in the same time period a year ago.

Winnebago CEO Michael Happe says the third quarter was a uniquely challenging time for the company.  “Despite our third-quarter financial results being significantly impacted by COVID-19, we were pleased with the relative performance of our diverse and balanced portfolio during this unprecedented market cycle. We learned a great deal in this short period and it has served as a catalyst to reinforce the strengths of our business model in terms of our manufacturing processes, supply chain relationships, variable cost model, dealer partnerships, and especially the resilience of our premium brands.”

Happe thanked his employees for their response to the COVID-19 environment as they continue the process of returning to work in a thoughtful and safe manner.   “In the face of uncertainty and dynamic market conditions, our teammates continue to demonstrate resilience, determination and care daily as we balance productivity and efficiency with safety and health. There have been countless moments of inspiration as our employees make cloth masks, face shields, contribute to fellow employees’ assistance funds, and engage our communities with acts of charity to help their neighbors.”

Happe says recent indicators signal a strong recovery this summer for outdoor recreation products.  “From camping and RVs, to fishing and boats, consumer interest in the outdoors and investments in these discretionary durable goods products have been robust. There has been much discussion about the influx of new consumers to these outdoor spaces, both in terms of purchases, but also in the more experiential rental and sharing sides of the outdoor business. As the states continue to carefully manage the openness of their communities and activities, Americans are voting with their wallet and time that the outdoors is the place to be.”

Happe says with a refreshed lineup of high-quality motorized RVs and the recent purchase of Indiana motorhome manufacturer Newmar, the company is better positioned to more effectively compete in the high-end motorhome market, and the motorhome segment is more balanced and competitive than ever before.   “The acquisition of Newmar has already resulted in gains toward restoring our motorhome business to a leadership position by adding it’s highly respected luxury brand to our portfolio. Despite challenges posed by the COVID-19 pandemic, the integration of Newmar into the Winnebago Industries portfolio is proceeding as planned. The company remains focused on ensuring that Newmar further expands it’s industry-leading position in the high-end motorhome market.”

Winnebago posted overall revenues for the quarter of $402.5 million, a decrease of 24% compared to $528.9 million for the same period last year.