Thor Industries, Inc. (NYSE:THO) stock rose 0.48% (As on December 8, 11:35:36 AM UTC-4, Source: Google Finance) after the company’s fiscal first-quarter results declined but exceeded analysts’ expectations despite macroeconomic headwinds weighing on customers and independent dealers, as the company sees a challenging operating and retail environment for the full year. North American towable RV sales tumbled 41% in the quarter to about $1.32 billion, while motorized RVs in the region advanced 22% to $1.12 billion. European RV sales fell 20% to $504.3 million. Within the North American motorized and European segments, ongoing pricing actions and process improvements helped offset material cost pressures as we continued to make progress in restocking dealer inventory levels. The company’s backlog plunged 59% to $7.42 billion year-on-year, but said overall levels remain “somewhat elevated” versus the pre-pandemic period as demand for the RV lifestyle and products stays strong.

Moreover, North American Towable RV gross profit margin was 14.9% for the first quarter of fiscal 2023, compared to 18.2% in the prior-year period. The decrease in gross profit margin for the first quarter was primarily driven by an increase in sales discounts, and higher warranty and overhead costs as a percentage of sales.

THO in the first quarter of FY 23 has reported the adjusted earnings per share of $2.53, beating the analysts’ estimates for the adjusted earnings per share of $1.77. The company had reported the adjusted revenue decline of 22 percent to $3.11 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $2.87 billion. Consolidated gross profit margin for the first quarter was 15.7%, a decrease of 90 basis points when compared to the first quarter of fiscal year 2022 but an 80 basis point improvement over the first quarter of fiscal year 2021. Net cash provided by operations for the first quarter of fiscal 2023 was $94.0 million as compared to net cash provided by operations of $41.8 million for the first quarter of fiscal 2022. During the first quarter, the Company continued to execute on its share repurchase program, repurchasing $25.4 million of common stock, bringing the total amount repurchased since the December 2021 authorization to $190.5 million.

For fiscal 2023, Thor anticipates EPS to be in a range of $7.40 to $8.70 and sales to be between $11.5 billion and $12.5 billion. The Street is looking for profit of $8.19 a share on revenue of $11.48 billion for the fiscal year.