Winnebago: Can Meet The "Incredible Demand" For RVs

Above, a Winnebago Class C motorhome at the California RV Show. Photo by Armand Vaquer.

Winnebago Industries says it can meet the "incredible demand" for RVs as the country is slowly easing out of the pandemic.

According to Motley Fool:

Investors had some good reasons to expect solid sales numbers from Winnebago (NYSE:WGO), especially after peer Thor Industries (NASDAQ:THOR) described a booming RV market earlier in the month. But Wall Street was worried about manufacturing and supply chain challenges, and about a potential slowdown as the pandemic threat fades.

Winnebago put most of those fears to rest in its recent fiscal third-quarter report, which points to a sustained sales boost and surging profits on the way as travel picks up. 

Protecting profits

Thor Industries noted major supply chain issues that were holding up production rates for RVs, just as they have been for many automakers so far in 2021. But Winnebago's manufacturing rates were strong this quarter, likely reflecting its wider portfolio and larger base of production.

The combination of higher prices and low dealership inventory, meanwhile, allowed Winnebago to increase prices even as more customers opted for premium products. As a result, gross profit margin jumped to 18% of sales compared to 8% a year ago.

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