The shutdown and restart of Winnebago Industries’ operations due to the COVID-19 pandemic hurt the company financially, but the near future should be bright as people turn to RVs during the recovery.
The Forest City-based outdoor lifestyle manufacturer reports a fiscal third-quarter net income loss of $12.4 million after reporting a profit of $36.2 million in the same period a year ago.
Winnebago CEO Michael Happe says the third quarter was a uniquely challenging time for the company.
“Despite our third-quarter financial results being significantly impacted by COVID-19, we were pleased with the relative performance of our diverse and balanced portfolio during this unprecedented market cycle,” Happe says. “We learned a great deal in this short period and it has served as a catalyst to reinforce the strengths of our business model.”
Happe says that includes the manufacturing processes, supply chain relationships, variable cost model, dealer partnerships, and especially the resilience of Winnebago’s premium brands. Happe thanked his employees for their response to the COVID-19 environment as they continue the process of returning to work in a thoughtful, safe manner.
“In the face of uncertainty and dynamic market conditions,” he says, “our teammates continue to demonstrate resilience, determination and care daily as we balance productivity and efficiency with safety and health.” There were countless moments of inspiration, he notes, as employees made cloth masks, face shields, contributed to fellow employees’ assistance funds, and engaged in their communities with acts of charity to help neighbors.
Happe says recent indicators signal a strong recovery this summer for outdoor recreation products.
“From camping and RVs to fishing and boats, consumer interest in the outdoors and investments in these discretionary durable goods products have been robust,” Happe says. “There has been much discussion about the influx of new consumers to these outdoor spaces, both in terms of purchases, but also in the more experiential rental and sharing sides of the outdoor business.”
As the states continue to carefully manage the openness of their communities and activities, he says Americans are voting with their wallets and time that the outdoors is the place to be. Happe says with a refreshed lineup of high-quality motorized RVs and the recent purchase of Indiana motorhome manufacturer Newmar, the company is better positioned to more effectively compete in the high-end motorhome market. He adds, the motorhome segment is more balanced and competitive than ever before.
“The acquisition of Newmar has already resulted in gains toward restoring our motorhome business to a leadership position by adding its highly respected luxury brand to our portfolio,” Happe says. “Despite challenges posed by the COVID-19 pandemic, the integration of Newmar into the Winnebago Industries portfolio is proceeding as planned.” Winnebago posted overall revenues for the quarter of $402.5 million, a decrease of 24% compared to $528.9 million for the same period last year.
By Bob Fisher, KRIB, Mason City
