FOREST CITY, Iowa — The start of the spring selling season is a risky time for a recreational vehicle manufacturer like Winnebago as its new lineup of products meets its first big test with consumers. On top of that challenge, the RV giant had to deal with spiking raw material costs that threatened to hurt profitability, reported The Motley Fool.
Winnebago overcame those issues to post healthy growth in sales and profits in its most recent quarterly report.
The towable RV segment powered Winnebago’s market-thumping growth this quarter, with deliveries up 31 percent to 2.3 million. The demand was broad-based, management said, and lifted both the Winnebago brand and the recently acquired Grand Design portfolio. These products generate far higher profit margins, too, which helps explain why gross profit is up to 14.6 percent of sales over the last nine months, from 13.6 percent in the prior-year period.
Executives said Winnebago Industries growth has been driven by the Winnebago-branded towable business and Grand Design-branded RV businesses, which continue to outpace the market and gain share. That’s why the company is aggressively expanding capacity, including by launching expansion projects in both the Winnebago and Grand Design production lines this quarter.
Read more at The Motley Fool.