Winnebago Industries, Inc. recently reported financial results for the Company's Fiscal 2023 first quarter.
Revenues for the Fiscal 2023 first quarter ended November 26, 2022, were $952.2 million, a decrease of 17.6% compared to $1.2 billion for the Fiscal 2022 period, driven by unit volume decreases versus record year-ago comparisons, partially offset by Marine segment unit growth and price increases in all segments related to higher material and component costs.
“Winnebago Industries’ first quarter results are a testament to the strength, diversification and resiliency of our brand portfolio amid a dynamic macroeconomic environment. Growth in our Motorhome and Marine segments helped to mitigate challenging market conditions in our Towables business, demonstrating the ongoing benefits of a more balanced array of outdoor recreation businesses," President and Chief Executive Officer Michael Happe commented. "We are also proud of the investments our team continues to make in strengthening our golden threads of quality, innovation and experience. This was evidenced recently with our Winnebago-branded HIKE 100 FLX travel trailer being named 'RV of the Year' by RVBusiness trade magazine, and all three of our RV brands (Winnebago, Grand Design, and Newmar) receiving the 2022 Dealer Satisfaction Index awards from the RV Dealer Association. I want to thank all of our Winnebago Industries employees for their hard work during the quarter and their perseverance as we continue to face various challenges, including ongoing supply chain disruption at times. While we expect uncertain market conditions to continue to persist into calendar year 2023, we will remain disciplined on our business operations while still making smart investments in profitable differentiation for our future."
Revenues for the marine segment sepcifically were $131.4 million for the first quarter, up 65.7% from unit volume growth and price increases related to higher material and component costs. Marine is Winnebago Industries’ fastest-growing segment, led by market share growth of the Barletta brand in the growing pontoon category, complemented by steady demand for the Chris-Craft brand in the fiberglass category. Barletta continues to outperform the pontoon category and gain market share, according to October 2022 reports from Statistical Surveys Inc. Segment Adjusted EBITDA was $18.5 million, and Adjusted EBITDA margin was 14.1%, up 80 basis points compared to the prior year, primarily due to increased revenue and operating leverage as the Company continues to optimize manufacturing processes and leverages the enterprise capabilities of the broader organization. Backlog for the marine segment was up 23.8% compared to the prior year period from continued restocking of dealer inventories and signing of new dealers.
“At our recent Investor Day, Winnebago Industries shared strategic priorities and business targets through our Fiscal 2025 year. This was a well-considered, positive representation of our plans and ambitions in the future to create an even stronger company and drive success for our many stakeholders. Winnebago Industries is committed to being the trusted leader in outdoor lifestyle solutions and to that end we will continue to invest strategically in long-term initiatives that create a profitable growth foundation," Happe said. "However, navigating the near-term during the rest of Fiscal 2023 is critically important in maintaining momentum and financial health. We expect some supply chain issues and the normalization of outdoor retail demand to continue through the rest of this period, yet we are focused on maintaining solid profitability by leveraging our highly variable cost structure, strong relationships with dealers and suppliers, and the appeal of our increasingly diverse portfolio of premium brands.”