Winnebago Industries, Inc. (NYSE: WGO) has reported financial results for the company’s Fiscal 2023 second quarter.
Revenues for the Fiscal 2023 second quarter ended Feb. 25, 2023, were $866.7 million, a decrease of 25.6% compared to $1.2 billion for the Fiscal 2022 period, driven by unit volume decreases versus record year-ago comparisons, partially offset by carryover price increases in all segments. Gross profit was $146.8 million, a decrease of 32.2% compared to $216.6 million for the Fiscal 2022 period, driven by decreased volume, higher material and input costs, deleverage and productivity loss from supply disruptions, partially offset by carryover price increases in all segments. Gross profit margin decreased 170 basis points in the quarter to 16.9%. Operating income was $76.8 million for the quarter, a decrease of 43.9% compared to $136.8 million for the second quarter of last year. Fiscal 2023 second quarter net income was $52.8 million, a decrease of 42.1% compared to $91.2 million in the prior year quarter. Reported earnings per diluted share was $1.52, compared to reported earnings per diluted share of $2.69 in the same period last year. Adjusted earnings per diluted share was $1.88, a decrease of 40.1% compared to adjusted earnings per diluted share of $3.14 in the same period last year. Consolidated Adjusted EBITDA was $88.4 million for the quarter, a decrease of 41.3%,compared to $150.7 million last year.
Revenues for the Marine segment were $112.9 million for the second quarter, up 16.1% due to carryover price increases. The growth was led by Barletta, which continues to outperform the Aluminum Pontoon category and gain market share. Segment Adjusted EBITDA was $14.4 million, and Adjusted EBITDA margin was 12.8%, down 50 basis points compared to the prior year, primarily due to higher material and input costs, partially offset by carryover price increases. Backlog for the Marine segment was down 14.1% compared to the prior year period due to continued replenishment of dealer inventories.
President and Chief Executive Officer Michael Happe commented, “Winnebago Industries’ second quarter results continue to demonstrate the resilience of our diversified portfolio of premium brands. Another strong quarter of performance in our Marine segment helped to offset a softening in consumer demand for RVs from recent cyclical highs. Furthermore, ongoing efforts to continuously improve efficiency, reinforced by our commitment to disciplined execution and cost management, allowed us to maintain competitive margins across our Towable, Motorhome and Marine segments. These results could not have been achieved without an incredible effort from the Winnebago Industries team, who continues to demonstrate exceptional discipline, while simultaneously advancing industry-leading innovation. The recent launches of the Barletta Aria and Reserve, as well as the new Chris-Craft Calypso 32 are the latest examples of the innovation that is driving our business forward.”