Wall Street Journal: THOR Sales Picking Up Amid Discounts

RV-maker THOR Industries said sales fell sharply in the April quarter but have begun to recover as dealerships tempted buyers with discounts on aging models, according to a report by The Wall Street Journal.

Despite the uptick, THOR said Tuesday it remains cautious as rising interest rates weigh on demand for big-ticket items and stubbornly high inflation squeezes Americans’ budgets for discretionary purchases. Americans have pulled back on spending in various areas, from apparel and shoes to home-improvement projects and furniture, but demand for travel has so far held strong.

THOR, which owns brands such as Airstream and Jayco, said it may need to help dealers offer bigger promotions to sell through old RV models.

Shares of Elkhart, Ind.-based THOR closed Tuesday up nearly 18% to $93.15. The upbeat commentary also propelled shares of rival Winnebago Industries 9.4% higher and shares of RV retailer Camping World Holdings up 9.1%.

Demand for RVs surged during the pandemic as many Americans turned to RVs in place of international travel. Manufacturers such as Thor struggled to keep up with demand, and many dealerships commanded prices above the suggested retail price.

The market, though, began to turn around at the end of last year as inflation and rising interest rates weighed on demand.

Now, dealerships and manufacturers are racing to sell through model year 2022 inventory that is still sitting on lots around the country as the industry prepares to roll out the latest models.

THOR, which plans to release its model year 2024 towable RVs next month, estimates that as much as 25% of its field inventory was from the 2022 model year as of June 1. The company hopes to reduce that figure to 10% by the end of the current quarter.

Read the full report by The Wall Street Journal.

Source: https://rvbusiness.com/wall-street-journal-thor-sales-picking-up-amid-discounts/