Winnebago Industries Inc. reported strong sales growth following its Newmar acquisition, leading to a 45 percent in increase in revenue to $626.8 million compared to $432.7 for the fiscal 2019 quarter.
“While our company performed solidly in the second quarter, the focus of every industry in the U.S. have been on the increasing risk presented by the coronavirus outbreak,” said CEO Mike Happe in a statement.
While earnings were strong, the builder missed Q2 earnings estimates, according to Zack’s Consensus Estimates. Winnebago posted quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.60 per share a year ago.
The company announced this week it would suspend production across all of its operations, including its Chris-Craft brand, through April 12.
“We have seen significant change in mid-March for the demand of our products by both consumers and dealer partners,” said Happe. “A COVID-19 task force, consisting of team leaders from across all of Winnebago Industries, has been in place for many weeks and continues to proactively develop contingency plans to ensure the health and safety of our team and navigate through what appears to be very real disruption in both our internal operations and end markets.”
“Additionally, we will continue to be very disciplined in our financial management of the company as we closely follow the status of the health crisis and the end markets to stay ahead, as possible, of any further disruptions,” said Happe.
During the quarter, the Chris-Craft business drove “meaningful retail results” during the spring show season, driven by an array of new models, said Happe.
“This consolidated company growth reflects the increasing appeal of our evolving portfolio of businesses and our progressively competitive position in these outdoor industries,” said Happe. “We are confident that our relentless focus on quality, innovation, and customer service will build brands that consumers will seek out.”