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Thor Industries  (THO) - Get Thor Industries, Inc. Report sagged 3.24% to $62.49 Wednesday after the recreational vehicle manufacturer missed Wall Street's second-quarter earnings and revenue expectations and warned of challenges for the rest of the year.

The Elkhart, Indiana-based company reported adjusted earnings of 65 cents a share, missing analysts' expectations of $1.11. Thor Industries posted a net loss of $5.4 million or 10 cents a share, reflecting acquisition-related costs totaling $42.1 million, or 75 cents a share. Revenue was $1.29 billion, short of Wall Street's forecast of $1.62 billion.

Thor said the earnings reflected costs associated with the acquisition of Erwin Hymer Group, which was completed after the end of the quarter. The results also reflected the impact of balancing production with market demand, the company said, as wholesale shipments declined compared with retail sales as dealers continued to sell through existing inventories before placing new orders.

Thor said second-quarter wholesale shipments declined at a double-digit percentage compared with relatively stable retail registrations through the end of December. The excess retail sales over wholesale shipments resulted in reductions in dealer inventory ahead of the early spring retail shows and peak summer selling season. The overall levels of discounts and incentives increased compared with the unusually low levels recorded in the second quarter of fiscal 2018.

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"For the rest of fiscal 2019, we expect to face challenges that may impact our financial results as dealers continue to closely manage inventory to levels that better reflect current retail demand, and their ability to replenish inventory more quickly," Bob Martin, Thor president and CEO, said in a statement.