Winnebago CEO Michael Happe instructed CNBC on Friday he expects the coronavirus pandemic-inspired surge in leisure car gross sales to final into s
Winnebago CEO Michael Happe instructed CNBC on Friday he expects the coronavirus pandemic-inspired surge in leisure car gross sales to final into subsequent yr.
The feedback got here after the Forest Metropolis, Iowa-based firm reported sturdy quarterly outcomes that exceeded Wall Avenue expectations. Traders cheered the quarter Friday, with shares of Winnebago closing larger by greater than 5%.
Winnebago reported adjusted per-share earnings of $1.69, beating estimates of $1.01, in keeping with FactSet. It additionally represented a 131.5% improve from the identical quarter a yr in the past. Revenues for the quarter that ended Nov. 28 got here in at $793.1 million, up 34.8% yr over yr and topping analyst forecasts of $753 million.
“We had been actually happy, clearly, with the way in which the shoppers flocked to the outside in 2020 as they tried to handle via the pandemic’s impression on their lives, and we imagine you will see an identical conduct pattern in 2021,” Happe mentioned on “Closing Bell.”
“There may be quite a lot of pent-up demand, we imagine, by shoppers who had been maybe within the area and the class earlier this yr and possibly did not pull the set off however are nonetheless very excited to discover a solution to get into RVing and boating in 2021,” the manager added.
Winnebago Industries motor properties on show at Winnebago Motor Properties in Rockford, Illinois.
Daniel Acker | Bloomberg | Getty Photographs
Because the coronavirus pandemic rendered social distancing essential, many outside leisure actions akin to boating, biking and touring by RV noticed a development in reputation. Happe just isn’t alone in his optimism that People’ newfound curiosity within the open air will carry over into subsequent yr.
Brunswick CEO David Foulkes instructed CNBC earlier this month, “We’ve got unbelievable momentum within the [boating] business now. We have attracted in a brand new demographic. … I believe that gives us nice momentum, not simply subsequent yr however into future years.”
Winnebago, which sells RVs and boats, has noticed an identical shift in consumers, in keeping with Happe. “Our shoppers are getting youthful. They’re changing into extra numerous by way of background and profile, they usually’re utilizing the merchandise in many alternative methods,” he mentioned. “The work-from-anywhere pattern is sort of sturdy proper now, and a whole lot of our new shoppers are seeing these merchandise as a solution to work from the street or a phenomenal campground someplace right here in America.”
Shares of Winnebago are up 18% thus far this yr and greater than 260% since their March 19 virus-era low.