Investing.com -- Shares in Winnebago Industries (NYSE:WGO) fell in early U.S. trading on Wednesday after the recreational vehicle (RV) manufacturer reported fiscal first-quarter profit that missed expectations.
Minnesota-based Winnebago posted adjusted per-share income of $1.06 in the three months ended on Nov. 25. It marked a decline of 48% versus the corresponding period last year and was below Bloomberg consensus estimates of $1.18.
Net revenue slumped by just under a fifth to $763.0 million due mainly to lower unit sales that Winnebago said were "related to market conditions," in the latest sign that inflation-hit consumers are choosing to spend less on big-ticket discretionary items like automobiles. Higher discounts and allowances versus the previous year also contributed to the slowdown.
Sales from Winnebago's Motorhome RV division, which accounts for about 44% of the group's total revenues, dropped sharply to $334.4M. A reduction in average selling prices also led to a 4.8% downturn in revenue at its towable RV segment to $330.8M.
In a statement, Chief Executive Officer Michael Happe said the quarterly results underscored the "resilience" of the company's portfolio and cost structure, but noted that the sales environment has been "influenced by challenging retail trends and intentional inventory management by dealers."