Winnebago Shares Decline 5% Due to Disappointing Q1 Results and Earnings Guidance

EDEN PRAIRIE, Minn. - Winnebago Industries (NYSE:WGO) reported disappointing first-quarter results that fell short of analyst expectations, causing shares to drop 5.6% in early trading. The recreational vehicle manufacturer posted a adjusted loss of $0.03 per share against an expected profit of $0.22 per share for the quarter ending November 30. Revenue also missed expectations, declining 18% year-over-year to $625.6 million compared to the $690.94 million forecast.

Winnebago cited challenging market conditions in the RV and marine sectors, weak consumer demand, and cautious ordering behavior by dealers ahead of a slow winter season as contributing factors.

CEO Michael Happe emphasized, "These industry challenges underscore the critical importance of our strategic focus on disciplined production, effective cost management, and targeted investments in new products and technologies."

The company narrowed its full-year earnings guidance while maintaining the midpoint. Winnebago now expects adjusted earnings per share for the fiscal year 2025 to be in the range of $3.10 to $4.40, down from a previous range of $3.00 to $4.50. Revenue is still projected to fall between $2.9 billion and $3.2 billion.

Despite the weak quarter, management expressed confidence in an anticipated market recovery in the latter half of fiscal year 2025 as the spring selling season approaches. Happe pointed to encouraging retail trends in October and rising consumer confidence as positive indicators.

As part of its capital allocation strategy, Winnebago conducted a $30 million share buyback during the quarter.