Winnebago Industries CEO optimistic about near future as revenues down 18% for quarter

FOREST CITY — First quarter earnings fell for Winnebago Industries. The outdoor lifestyle products manufacturer with factory locations in Forest City and Lake Mills reported revenues were down 18% to $625.6 million, driven primarily by lower unit volume and a reduction in average selling price per unit. Net loss was $5.2 million, compared to net income of $25.8 million in the first quarter of last year.

Winnebago CEO Michael Happe says his company knew the first half of Fiscal Year 2025 would be challenging, something proved by the first quarter results.  “The outdoor recreation space continues to face a difficult operating environment marked by soft retail demand and a cautious dealer network, resulting in lower segment revenues and profitability in our towable and motorhome RV segments.”

Happe says recent recreational vehicle sales trends show some potential positives in the near future.  “From a retail perspective, industrywide RV shipments were up 2.4% year-over-year in October. Although one month does not make a trend, positive retail comps after 40 consecutive months of year-over-year declines are an encouraging sign as well.”

The RV Industry Association expects wholesale shipments to remain relatively flat through mid-2025 before accelerating in the second half of the year. Happe says they remain optimistic that things will turn around.    “We believe that gross field inventory levels in RV are well positioned, both in terms of quantity and aging. While RV dealers remain cautious about committing to new orders, we are seeing early signs of optimism driven by the conclusion of the election, the anticipated further easing of interest rates, improving inventory levels, and stabilizing consumer sentiment.”

Gross profit for the company for the quarter was $76.8 million, a decrease of almost 34% compared to the first quarter of last year.