Thor Industries Inc (NYSE:THO) stock fell 1.27% (As on December 5, 11:44:00 AM UTC-4, Source: Google Finance) after the company reported weaker-than-expected fiscal first quarter results as RV demand remained soft. Thor’s results were impacted by continued weakness in RV retail and wholesale markets. North American towable RV sales declined 4.9% YoY, while North American motorized RV sales plunged 29%. European RV sales dropped 14.6%. Consolidated gross profit margin for the first quarter of fiscal 2025 was 13.1%, a decrease of 120 basis points when compared to the first quarter of fiscal 2024. Net income (loss) attributable to THOR Industries, Inc. and diluted earnings (loss) per share for the first quarter of fiscal 2025 were $(1.8) million and $(0.03), respectively, compared to $53.6 million and $0.99, respectively, for the first quarter of fiscal 2024. EBITDA and Adjusted EBITDA for the first quarter of fiscal 2025 were $81,733 and $107,782, respectively, compared to $160,057 and $166,918, respectively, for the first quarter of fiscal 2024.
Moreover, North American Towable RV gross profit margin remained constant at 12.5% for the first quarter of fiscal 2025 compared to the prior-year period, despite the nearly 5% reduction in net sales. North American Motorized RV gross profit margin was 8.5% for the first quarter of fiscal 2025 compared to 11.2% in the prior-year period. European RV gross profit margin decreased to 15.3% of net sales for the first quarter of fiscal 2025 from 17.3% in the prior-year period, primarily due to an increased overhead cost percentage resulting from the decreased net sales.
THO in the first quarter of FY 25 has reported the adjusted loss per share of 3 cents, missing the analysts’ estimates for the adjusted earnings per share of 7 cents. The company had reported the adjusted revenue decline of 14.3 percent to $2.14 billion in the first quarter of FY 25, missing the analysts’ estimates for revenue of $2.25 billion. In the first quarter of fiscal 2025, the company generated approximately $30.7 million of cash from operations. First quarter capital expenditures totaled approximately $25.3 million.
The company maintained its full-year fiscal 2025 guidance, expecting consolidated net sales of $9.0 billion to $9.8 billion and earnings per share of $4.00 to $5.00.
Thor said it incurred about $15.5 million in strategic restructuring costs during the quarter, which are expected to generate over $10 million in annual savings going forward.
Despite the challenging quarter, Thor expects market conditions to improve in the latter half of fiscal 2025, particularly in North America.