Thor Industries, Inc. (THO) saw its shares dip on Tuesday following the release of its fourth-quarter earnings report. While the company surpassed analyst expectations for earnings per share, coming in at $1.68 against an estimated $1.43, revenue fell short of predictions. The company reported quarterly sales of $2.534 billion, a 7.4% decrease year-over-year, compared to the analyst consensus of $2.471 billion.
Breaking down the sales figures, North American Towable RV net sales saw a slight uptick of 0.1% in the fourth quarter. However, North American Motorized RV net sales declined by 21.2%, and European RV net sales decreased by 7.4% year-over-year. Despite the revenue shortfall, Thor Industries reported an expansion in its quarterly gross profit margin by 140 basis points, reaching 15.8%. This positive development was attributed to strategic initiatives aimed at maximizing operational efficiency, according to Bob Martin, President and CEO of Thor Industries.
Looking ahead, Thor Industries expressed cautious optimism about the upcoming fiscal year 2025. The company anticipates sales between $9.0 billion and $9.8 billion, a significant decrease from the $10.49 billion estimate. Earnings per share are expected to range from $4.00 to $5.00, falling below the estimated $6.65. The company acknowledged the persistence of macroeconomic challenges throughout fiscal year 2025, anticipating elevated discounting in the Motorized segment and moderate discounting in the Towable segment.
Thor Industries closed the quarter with a strong cash position, holding $501.32 million in cash and equivalents. Inventories at the end of the quarter amounted to $1.366 billion. Despite the challenges ahead, Thor Industries remains confident in its long-term strategy, positioning itself for the upcoming Fall Open House event and the winter season.
In premarket trading on Tuesday, THO shares fell by 2.97% to $100.12.
