Winnebago Industries (WGO, Financials) shares dropped Wednesday after the recreational vehicle maker cut its full-year forecast and posted a year-over-year decline in quarterly profit and revenue, citing continued economic uncertainty and soft consumer demand.
Fiscal third-quarter adjusted earnings per share came in at $0.81, down from $1.10 a year earlier. Revenue declined 1.4% to $775.1 million. Both metrics missed Visible Alpha consensus and matched guidance provided in an earlier preview.
Sales in the Towable RV segment fell 4% to $371.7 million, while Motorhome RV sales dropped 2.6% to $291.2 million due to lower volumes. However, Marine revenue rose nearly 15% to $100.7 million, driven by pricing.
The company now expects adjusted EPS between $1.20 and $1.70 for fiscal 2025, down sharply from its prior guidance of $2.75 to $3.75. It also lowered its revenue outlook to a range of $2.7 billion to $2.8 billion from $2.8 billion to $3.0 billion.
CEO Michael Happe attributed the weaker outlook to “diverse dynamics” across business segments and “an uncertain economic environment.” Analysts are likely to scrutinize margins and pricing strategy as Winnebago navigates a downturn in discretionary spending.
