Winnebago (WGO) reported strong results for the quarter ended Nov. 24, 2018. The company delivered revenue of $493.65 million and EPS of $0.07, beating on both revenue and earnings. I was actually shocked by how strong the results were. Through the first 10 months of the year RV shipments were down 1%. They also had fallen by double digits Y/Y in September and October. I naturally assumed Winnebago’s top line also would fall by double digits.

Nothing could have been further from the case. The company grew revenue by 10% Y/Y and it did not have to sacrifice margins to do it. Gross margin ticked up by 40 basis points, which made the performance all the more impressive. Part of the top line growth was goosed by the acquisition of Chris-Craft, a recreational boat builder, over the summer. However, they were still impressive in light of the free fall in industry shipments.

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