Winnebago Industries has reported a 6.5% decline in revenue in the last quarter with results falling short of expectations due to sluggish retail demand and operating inefficiencies.
In the marine segment, revenues for the last 12 months were down almost 31% from prior year, with adjusted EBITA down almost 58%.
For the last quarter, marine sector net revenues were down 16.6% with adjusted EBITA down almost 46%.
The decline was primarily driven by a drop in unit volume related to market conditions and product mix.
Segment adjusted EBITDA margin decreased compared to the prior year, primarily due to deleverage, partially offset by lower incentive-based compensation and cost containment efforts.
In addition, the backlog increased, primarily driven by an improvement in the inventory position with dealers and continued market share growth.
Gross profit
Overall Winnebago revenues were $720.9 million, compared to $771 million in the fourth quarter of last year, driven primarily by product mix, partially offset by higher unit volume.
Gross profit was $94.2 million, a decrease of 26.1% compared to $127.5 million in the fourth quarter of last year.
Gross profit margin decreased in the quarter to 13.1%, reflecting higher warranty expense, operational challenges, and deleverage.
Operating expenses were $112 million, an increase of 60.4% compared to $70 million in the fourth quarter of last year.
This increase was primarily driven by a $30.3 million impairment charge associated with the Chris-Craft reporting unit, start-up costs associated with the launch of the Grand Design motorised business. There were also investments in engineering, digital technology development and increased data and information technology capabilities.
The decline in fair value of the Chris-Craft reporting unit was driven primarily by softening in the marine industry due to sustained macroeconomic challenges impacting consumer demand, such as inflationary pressures and higher interest rates.
Also, the current uncertainty regarding the timing and degree of an economic recovery has had an effect.
