RV Bust Kicks Into High Gear As Winnebago Records Big Revenue Miss
The consumer is spending less and saving more, which is a sign that they are cracking.
Look back on our coverage of the boom in the RV market over the past two years.
Last month, we announced that RV dealers nationwide would be closing.
Motorhomes on sale at a discount
Towable trailers. Winnebago Industries has been hit by the RV bust. The company reported lower revenues for its third quarter, which ended on May 27, due to higher discounts and declining sales.
Winnebago
reported
A 38.2% drop in unit sales due to a deteriorating RV retail market. The management increased the discounts compared to last year's same quarter in an effort to stimulate demand. High interest rates, however, are reducing demand.
Towable RVs saw the biggest decline in revenue, falling 52% to $384.1 millions. The decline in revenue is due primarily to lower unit volumes associated with "challenging" retail market conditions, discounts and allowances as compared to a year earlier. The Motorhome RV segment saw revenues decline by 27.5%.
Investors digested news as Winnebago's shares remained flat on Wednesday morning in New York. The shares are still 26% below their peak, which was established early in 2021.
The April 2023 RV Industry Association survey results of all manufacturers revealed that the total RV shipments for the month ended with 31,216 units. This is a decrease (-45.4%) compared to the April 2022 57,192 unit shipment. RV shipments have decreased by (-52.1%) in April with 109 816 units.
An ominous sign is a record monthly decline in data dating back to three decades.
Who killed the RV bubble, you ask? It's the same people who allowed record low interest rates...
Travel trailers led the way with 26,860 RVs shipped in April, a decrease of 48.6% compared to last year. Motorhomes ended the month with a decrease of (-12.4%) when compared to April last year.
The report reveals a surprising fact: shipments of parked mobile homes continue to increase due to the lowest housing affordability for a generation. The 'American Dream,' for some, is a trailer or, as millennials refer to it, a "tiny house", as inflation has eaten away at wages over the past two years.
The boom has ended. The bust has begun. The summer is a great time to find deals for those who did not panic during the Covid period.