Increasing interest in the RV lifestyle helped Winnebago record its first-ever quarter with revenue topping $1 billion.
Eden Prairie-based Winnebago reports its first $1B quarter
Annual revenue for the recreational vehicle company increased 54%.
October 20, 2021 at 5:32PM
The Eden Prairie-based company on Wednesday reported record revenue and earnings for both its fourth quarter and fiscal year, with annual revenue increasing 54% to $3.6 billion.
"The new heights we were able to achieve in revenues and profitability demonstrate the unique strength and appeal of our growing platform of leading brands," said Michael Happe, Winnebago's chief executive, in the company's news release.
Winnebago reported its first $1 billion quarter as annual revenue for the fiscal year ended Aug. 28 increased 54% to $3.6 billion.
Winnebago earned $84.1 million in June, July and August, or $2.45 a share, up 96% from the same period the year before. Revenue was a bit more than $1 billion, up 40%.
Earnings per share for the year increased 350% as Winnebago earned $281.9 million, or $8.28 a share, compared with $61.4 million, or $1.84 a share, in the prior year.
The results exceeded analyst expectations of $2.01 a share for the quarter and $7.96 for the year. Revenue also increased more than expected. Still, the stock lost 3% of its value on Wednesday.
Winnebago officials said the company worked through a number of inflationary pressures and supply-chain challenges in the quarter. And like a lot of other outdoor products companies, it has had to work through a backlog of orders as consumers continue to seek respite from the pandemic through more outdoor activities.
"In an environment of high demand, low dealer inventories, tight supply chain and dynamic cost pressures, our market share gains accelerated in the fourth quarter," Happe said in the release.
Winnebago is off to a strong start to its next fiscal year as well. At the RV industry's largest trade show in September, the company showcased 75 models — from small towables to a new luxury motor coach called the Journey — that appeal to new and repeat owners across its product lineups.
The quarter's strong results were spread across its reporting segments, led by a 49% revenue increase in the motor home segment to $448.9 million and a 35% increase in the larger towables segment to $560 million.
During the quarter, Winnebago also augmented its marine platform with a $320 million deal to buy Barletta Boat Co., an Indiana-based maker of luxury pontoon boats. Winnebago also owns the Chris-Craft boat brand. The Barletta deal closed after the fiscal year concluded.
"The pandemic has undoubtedly catalyzed and accelerated powerful demand for outdoor experiences," Happe told analysts in the company's earnings call. "And we believe the secular shift already underway pre-COVID-19 will have a lasting impact as more and more new families experience the great outdoors."
In the earnings release, Happe noted a number of recent ESG (environmental, social and good governance) initiatives. The company has added Jil Littlejohn Bostick as head of diversity, equity and inclusion and added two new independent board members and also extended its partnership with the National Parks Foundation to build the next generation of outdoor leaders. It also recently joined the growing number of companies that have signed pledges to achieve net-zero greenhouse gas emissions by 2050 as one of more than 900 members of the We Mean Business coalition.
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