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Winnebago Profit Quadruples on Strong Retail Demand, Efficiencies

Winnebago reports fiscal-second-quarter earnings leaped. Demand for motor homes is strengthening as the COVID vaccines are distributed.

Winnebago  (WGO) , the iconic producer of mobile homes, reported fiscal-second-quarter earnings per share quadrupled on 34% higher revenue.

The latest figures exceeded Wall Street analysts’ expectations.

The results reflect high demand the company has seen in its towable and motor-home business segments, Winnebago said. 

The Eden Prairie, Minn., company said it also benefited from productivity initiatives and significant reductions in inventory.

For the quarter ended Feb. 27 Winnebago earned $69.1 million, or $2.04 a share, compared with $17.3 million, or 51 cents a share, in the year-earlier quarter. 

Adjusted earnings were $2.12 a share against 67 cents a year earlier.

Revenue reached $839.9 million from $626.8 million.

A survey of analysts polled by FactSet produced consensus estimates of GAAP earnings of $1.47 a share, or an adjusted $1.42, on revenue of $805.2 million.

At last check Winnebago shares were nearly 3% higher at $79.41.

Winnebago Rises After First-Quarter Earnings Beat Estimates

Winnebago's offerings “consistently resonate with end consumers who continue to flock to the great outdoors in search of extraordinary experiences with family and friends…,” President and Chief Executive Michael Happe said in a statement.

“We are seeing strong retail momentum heading into the prime spring season.” 

The gross-profit margin widened 5.9 percentage points, driven by higher pricing, the efficiencies, and sales of more-profitable products.

Winnebago is also "optimistic about the positive retail and wholesale conditions for the rest of our fiscal year," Happe said.

The company is working with its suppliers to “deliver higher volume levels of product to the market for the foreseeable future,” Happe said.

Winnebago is “encouraged by the ramp-up of vaccinations in North America,” he added. The company encourages its stakeholders to stay healthy as they enjoy the outdoors, he added.