Overview

• RV manufacturer reported fiscal Q3 revenue down 3.9% yr/yr amid challenging retail environment

• Company repurchased $50.5 mln in shares during the quarter

• Full-year EPS guidance revised downward due to prolonged macroeconomic headwinds

Outlook

• Thor sees full-year net sales between $9.0 bln and $9.5 bln (no revision)

• Company lowers full-year diluted EPS guidance to $3.30-$3.80 from $3.75-$4.25

• Thor expects declining gross margin at midpoint, previously stable

Result Drivers

• NORTH AMERICAN TOWABLES - Segment faced a 24.6% sales decline, driven by a 25% drop in unit shipments, strained consumer sentiment, and higher material costs from tariffs and inflation

• MOTORIZED & EUROPEAN SEGMENTS - North American Motorized sales rose 7.7% and European sales rose 11.8%, supported by higher unit shipments and, in Europe, favorable currency effects

• MARGIN PRESSURE - Gross margins fell across segments due to higher material, warranty, and overhead costs, as well as unfavorable product mix

Company press release: ID:nPn9J2TJ4a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy."

• Wall Street's median 12-month price target for Thor Industries Inc is $100.00, about 29% above its June 2 closing price of $77.54

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

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