Winnebago Industries, Inc. (NYSE:WGO) stock fell 1.09% (As on March 22, 11:25:27 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. Gross profit was $105.3 million, a decrease of 28.3% compared to $146.8 million for the fiscal 2023 period. Gross profit margin decreased 190 basis points in the quarter to 15.0% as a result of deleverage and higher warranty experience compared to prior year. Selling, general and administrative expenses were $64.2 million, a decrease of 3.0% compared to $66.2 million in the second quarter of last year, driven by lower incentive-based compensation. Operating income was $35.4 million, a decrease of 53.8% compared to $76.8 million for the second quarter of last year. Net loss was $12.7 million, compared to net income of $52.8 million in the prior year quarter. Consolidated Adjusted EBITDA was $49.8 million, a decrease of 43.7%, compared to $88.4 million last year. As of February 24, 2024, the Company had total outstanding debt of $694.8 million ($709.3 million of debt, net of debt issuance costs of $14.5 million) and working capital of $649.0 million. Cash flow provided by operations was $25.2 million in the Fiscal 2024 second quarter.

Moreover, Revenues for the Towable RV segment were down compared to the prior year, primarily driven by a decline in unit volume related to market conditions and a reduction in average selling price per unit related to product mix and targeted price reductions, partially offset by lower discounts and allowances. Revenues for the Motorhome RV segment were down from the prior year, due to a decline in unit volume related to market conditions, higher levels of discounts and allowances and unfavorable product mix, partially offset by price increases related to higher motorized chassis costs. Revenues for the Marine segment were down from the prior year, primarily driven by a decline in unit volume related to market conditions, unfavorable product mix and higher discounts and allowances.

WGO in the second quarter of FY 24 has reported the adjusted earnings per share of 93 cents, beating the analysts’ estimates for the adjusted earnings per share of 86 cents, according to Zacks Investment Research. The company had reported 18.8 percent decline in the adjusted revenue growth to $703.6 million in the second quarter of FY 24, beating the analysts’ estimates for revenue of $692.6 million. This is driven by lower unit sales related to market conditions and unfavorable product mix.