Is Thor Cracking?

Thor RV

Last week, Thor (THO) reported quarterly earnings. The company beat on revenue by $20 million, but missed on earnings. THO is down by double-digits post earnings. I had the following takeaways on the quarter:

Thor’s Top Line Could Be Cracking

In previous quarters, Thor has reported outsized revenue growth either through acquisitions or via organic sales. Things have suddenly changed. In the most recent quarter, Thor generated revenue of $1.8 billion, down 3% Y/Y. Revenue from Towables was flat, while revenue from Motorized vehicles was down by double digits. Based upon Thor’s current book of business, this could be a line of demarcation. The company’s organ revenue could continue to fall sans.

I interpolated unit sales for Thor by taking the difference between (1) year end unit sales and (2) unit sales through the first nine months of 2018 and 2017. Unit sales for Towables and Motorized vehicles were down Y/Y by 6% and 25%, respectively; on a blended basis, unit sales were only off by about 8%. Some of the lost unit sales were made up for by an increase in average selling price (“ASP”). ASP for Towables was up 6% Y/Y, while asp for Motorized vehicles was up 16%. If the price increases trail off, then Thor’s total RV sales could decline by double digits.

Motorized vehicles have an asp of anywhere from $80 to $95 thousand, versus about $25 thousand for Towables. Motorized vehicles also make up over 20% of Thor’s total sales. Read more:



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