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Why Winnebago’s Motorhome Revenue Fell by ~35% in Q3 2019

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Jun. 21 2019, Published 10:24 a.m. ET

Winnebago Industries’ Q3 revenue

In the third quarter of fiscal 2019, Winnebago Industries (WGO) reported net revenue of $528.9 million as compared to $562.3 million in revenue in the third quarter of fiscal 2018. This revenue data reflected a 5.9% YoY fall but a solid sequential increase of 22.2% in the last quarter.

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Motorhome revenue fell sharply

In the quarter ended May 25, Winnebago’s revenue from its motorhome segment tanked by 34.6% to $160.2 million as compared to $244.9 million a year ago. The company blamed an unexpected supply disruption for its Class B vans for lower motorhome sales. Also, its dealers’ planned efforts to destock and reduce existing inventory drove its motorhome sales sharply down in the last quarter.

Winnebago’s Class A, Class B, and Class C motorhome sales volume went down by 47.6%, 15.0%, and 30.0% in the third quarter. As a result, the company sold about 1,962 units of the total motorhome during the quarter, 894 units lower as compared to its sales volume in the third quarter of fiscal 2018.

Towables sales rose in Q3

In the third quarter of fiscal 2019, Winnebago sold 10,401 units of towables, up 6.5% on a YoY basis. Strong demand for the company’s Fifth Wheel towables, which rose by 13.9% YoY helped it boost revenue from the towables segment. Its revenue from the towables segment stood at $346.8 million, up 10.8% YoY.

Winnebago’s Travel trailer sales volume also inched up by 2.0% YoY to 6,185 units in the quarter ended May 25.

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