Winnebago Industries (WGO) 18 Oct 232023 Q4 Earnings call transcript

Good day, and welcome to the Q4 fiscal 2023 Winnebago Industries' Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Ray Posadas, Vice President of Investor Relations and Market Intelligence.

You may begin.

Good morning, everyone, and thank you for joining us today to discuss our fiscal 2023 fourth quarter earnings results. the Officer; by Vice and Chief Officer. on and Happe, President joined Financial Executive Chief Bryan am call Michael today President and I Hughes, Senior investor.wgo.net, broadcast be will on our our This the today. available live later is replay of being website call at and website a call on quarter release this morning. fourth issued posted results news The our to and was with our earlier website

operations to made may to forward-looking during in I'd of call from are considered our cautions I Before like differ These CEO, factors remind many read. With Industries SEC you to factors, uncertain you inherently our and certain company statements. Winnebago turn we a materially the and risks over under control, its which conference of today's statements beyond statements number results the statements these identified be are call which forward-looking number now The securities of like that, regarding start, company's that Michael are and to involve to I laws. filings, would a Happe. that you encourage Mike? and actual could President cause

to fiscal taking Thanks, time interest in then the of performance for morning. and our full for to quarter thanks results the your cover results. Hughes Ray. Industries financial call and year, and pass discuss provide And Good Winnebago fourth year an overview as always, XXXX in to our more quarter will full the I during detail. Bryan the

which year for as the dealer the thoughts modest as the will fourth comments, deliveries continued Q&A and industries. I closing fiscal expected demand portion Bryan's across of XXXX market, tumultuous outdoor quarter marine return persisted call. The the before company retail into lower and RV some offer and our consumer Following characterized

and allocation our have product. to prior focused demonstrate remained these capital of meaningful and drive relates gross challenges, results, have we on and particularly our our output to and industry-wide of current have diverse rationalizing million value given levels market the our to own continue efforts, a enabled to approach profitability our levels, premium shareholders. Overall, teams disciplined our adjusted Marine for XX.X% and with expense demand manner, Despite in networks optimizing managing down chain quarter, brands year share. inventory cost $XXX capacity, portfolio to it as our fourth growth model continue our inventory fiscal a and meaningful an supported per margin discipline achieved the channel of us in environment, diluted earnings creating by strategic consolidated revenues, supply allowed appropriately consolidated focus short-term dealer Our in selling combined at on segments net investing us initiatives in while share of for Those our in network $X.XX. and Towable sometimes intently

inventories across Our Towable equilibrium. profitability results of model in performance. softening Furthermore, continue to reflect our within most segments normalize, and track in record RV and a sales, diversified continued their RV as Marine particular, a own profitability of environment. segments, inventories Marine in demand the unit find a Despite business margin their resilient categories and the challenging

all Industries where slightly ability retail quarters while Design, SSIB market see managing in things conditions sign output a Grand than gained results good brands favorably recently declined market share have the the preparedness months, positioned quarter, appropriately our to remain our of month. relative Winnebago from Towables model for fourth evolving maintaining much were been quickly on demand future to focused dealer and more on to in will August reducing better Newmar, production share market and And prior trend and stand-alone product, industry. given This has and worse. RV anticipated. OEM our performance in We in accordingly, we consistently year come. respond focus share steadier to been to August RV past pleased or Winnebago

being positions within product RV needed. Dealers who fiscal when disciplined in intent are quality with the to very without the are with with mindful be to service affordability value continue premium to sacrificing their seeking our our are providing access appeal are and intentional backlogs. XXXX their year-end wholesale to and bringing improved brands increasingly We value on they consumers lots reflected order as of to and

and these as spring As improve they pressure the fiscal easing on through XXXX XXXX, of we for retail we season. anticipate prepare dealer and proceed to enter fronts orders gradual expect

our already in sequential September. are RV the through Towables monthly from seeing dealers increase We by a order segment in June backlog

started the pull to further XXXX dealers inventory LXX ultra they is on the in will even of strength begin growth year and the pontoon releases OEMs similarly to stability earnestly of retail brand center for share and work December the garner the year. in on age market, XXXX demonstrate offering and our dealers the market Among in floor began orders latest as new it the boat mix of calendar show current rightsizing meridian ultrahigh-end with support. to At back first and this as of boats available For transom, marine with some the their Barletta's Valetta the twin industry's time, Leggera, the to continues model on same continues through amongst months. reserve. engines mounted Reserve Both excitement a And to more simplified shipments lounge plants. of decontented offerings

Winnebago incredibly have of invest to pillar market are and innovation for differentiated core an distinct as towing new the and of with of modern We a remains strategy we while an single-axle tin travel and Along market heater, Winnebago factory portfolio and we in key with Serenova, by new continue the travel trailer product Wi-Fi. our of with line access businesses conventional in the existing designed premium of for attributes. maintaining wheel a prep today attributes, solar Access quality an Reflection products, proud trailer and the below family model lineup. The in power stick such Grand upscale, underbelly supplied appeal features eye and affordably and unique including pad and marks the priced enclosed into Reflection plans fifth as Design's XXX X heated $XX,XXX. premium new the jacks SUVs Towables below our with and stabillation available current floor take entrance new MSRP starting The XX-volt the products emphasizes

announced future a solutions quality with acquisition past, As Battery, tenet shared Solutions safety. outdoor performance, drivers. The expanding continuing exciting differentiation, and the power lithium-ion leader positioned our electrification. generation the of capabilities is QX a we energized we to Winnebago business within to Lithionics into and has leading have new acquisition of mobility solutions as new in as Industries space. best-in-class Lithionics with and our Industries and battery electrical Battery Battery a The In develop we and in our organic Winnebago Lithionics And family year, winning of are of business is our integration the supply provider this House of ecosystem the bolstered planned. proceeding innovation core customers

intent this the further, of industry. Complementing controller energy efficiency, and XXB simplified Power compact size several this van, RV, Winnebago of converter more Tampa, recently a shore the features into rest essential Solis time, battery which a IBEX weight converter, power RV. Pocket X providing energy a kit the solar acquisition, product user intuitive more to marine of groundbreaking into team this strong of plus offer operations solution in with features The Show the products release optimizer, and all introduces at new month of new improves power innovation and vehicle energy capabilities Flow system. than XX-volt components, its showcased power the Lithionics any Marine earlier a converter a signaling to and Even reduces management This the inverter, full-size recovery lightweight sustainability-focused battery integrated its customers and our alternator energy many recently the replacing and interface. conveniences charging Eco exclusive grow. the packs Pocket optimizes other simplifies single brand by announced Winnebago XXB reduces Winnebago Solis Our

net Now per diluted for the $X.XX. and fiscal adjusted year, XX.X% full $X.X XXXX of achieved our turning consolidated margin billion full of share earnings revenues, to year. in Overall, we gross

mix down I continuous partners We remain have overhead am brands. from in strong historic evolving profitability balanced and the to ago that our excellence, environment. year an productivity, market to outdoor with the rationalization maintain with we and pleased produce strength product appropriate of built line premium years dealer are difficult committed on maintained our the operational period, a the a foundation results last recreation of company our of incredibly in fixed collaboration cost containment the due of we our focus to on and results further transformed bottom While improvement X the can work diversified the with completed field. portfolio the over along just we

also continuing look brands share. are developments diverse to investments and continues to resonate in We to ensure our with further market to premium and of our portfolio innovation grow consumers ahead

fall. technology this advanced opens new Our center

our All full be the Bryan? in over to business financial results of now to more these efforts tailwinds quarter our Officer, scaling and when around turn fiscal turn beneficial will review to headwinds in future. I Chief XXXX the and the will call investments greatly successfully Hughes, fourth Bryan year Financial back to detail.

prior during million, the XX.X% efforts revenues a to lower inventories morning, with quarter fourth of partially related and to and good driven discounts carryover and on lower fiscal consolidated conditions, product year, increases. to recorded than Mike, year the by prior current price focus higher Thanks, by market everyone. unit $XXX reduce billion Fourth sales XXXX, allowances $X.X quarter offset dealer compared were model

earnings quarter profit to demonstrate was adjusted fourth Fourth earnings and XX.X% of earnings quarter in $XX.X adjusted These compared a Consolidated year. quarter. per the XXX in Gross strong environment, the to million, in to was diluted million, XX.X%. diluted EBITDA profit reported the to year. million of a deleverage navigate XX.X% the $X.XX $XX.X Towable the to to per Adjusted to prior quarter year were we challenging Marine million XXXX segments. Gross operating and share $XXX.X compared period. diluted points share and same compared As of discounts was quarter last allowances for last for diluted compared year. decreased $XXX.X last last million volume and income of Fourth to fiscal margins earnings was period margin compared $X.XX $XX.X was million profitability in compared year. basis for in the million by a period $X.XX the resilient year. Reported same $XXX.X higher was decrease $XXX.X to continue of share compared RV share we driven decrease million net $X.XX quarter income per the $XX.X prior declines per

annual to compared results. $XXX.X to adjusted prior and was discounts $X.X of XX.X% billion, driven was segment sales, year for XXXX fiscal to selling by was the higher cash in down as segment. compared market earnings quarter EBITDA diluted of associated retail the margin the has down per profit Fiscal model XXXX XX.X%, cover of a performance RV were to remains will unit reluctant levels and cautious allowances and decline product. volume as dealer the prior was XX.X% quarter, million, of Adjusted and revenues was well conditions now fourth This add year. a inventory million $XXX for with Turning prioritized the XXXX. Towable Revenues flow now primarily that $XXX were million. I network gross share free by or our $X.XX.

current overcame efforts margin demonstrate cautious will for up a deleverage levels responsive meet to price increases. Backlog offset EBITDA points cost down and accordingly, retail in RV to decreased XXXX, of volume to decreased RV unit warranty year fiscal dynamics. driven discounts versus the of models and a down to reduction segment segment billion, Towable On and levels full by from and and compared volume fiscal annual basis, our conditions revenues Looking XX.X% and discounts XX.X% customers. Towable and by conditions, of to experience. were $X.X due year cost segment favorable of an introduce and continue XXX towable confront dealer despite profitability and network. a higher decline pricing experience, reflecting favorable be allowances basis associated prior RV offset retail continued by shifting and and to market which manage prior allowances. XXX inventories partially year-over-year, partially adjusted dealer was and the primarily new the deleverage continues $XXX.X due carryover discounting million, retail higher with discounts XXXX, successful versus in resiliency volume softness for in and ahead, to higher market conditions, Segment year, the EBITDA basis needs points competition evolving XX.X%, reduction and initiatives XX.X% adjusted margin reduction we warranty allowances, to

Turning XX.X% offset to the conditions lower fourth unit sales were by from and chassis segment. quarter, year, with prior Motorhome $XXX.X discounts the prior million RV costs. associated price compared to higher our for higher partially and Revenues allowances market related retail year, by driven increases to down

and cautious network was As in and dealer a product as comp soft call, And during motorhome year's notably retail quarter below therefore, for business. in season implementation dealer the Of shipments. ease some spring of wholesale our we outpaced reminder, dealer of build summer QX, of unpredictable intentional the demand. to in experienced mentioned year was the Winnebago-branded a XXXX. earnings orders a Motorhome during was as our our the given of platform current by in an inventory to in throughout desired we hesitant a the ERP year. the result, dealer phase inventory responded that retail the QX And there challenges note and levels selling latest Also inventory our and allowing this QX we as place prior the experienced tough

process what functioning environment. used during is experience the adoption stabilize network reduced constrain necessary we the improvements have the to to This business the to production quarter system continue environment also executed. make dealer change business to demand to shipments we dealer the challenges as management While and the process softer compared into continue throughput designed, fourth otherwise could and and

we and Our this continuous retail capacity a RV implementation of and of thoughtfully season retail being as improvement dealer the continue hesitant system management the are day, QX, calendar initiatives in related to the into a context shipments network to of metered environment demand. and our head slow soft

of a requirements. Motorhome reflected basis As as prevailing concrete materializes We segment retail of actions, more selling these targeting. year end anticipate XXXX are result a the largely cautious Motorhome dealer season inventory decreased the from are what with segment driven turns operational down conditions demonstrates volume points the RV prior due retail network until line the was in our margin adjusted softness a and $XXX.X of EBITDA sequentially higher in dealer allowance inventory a in dealer million, in network. fiscal and and stability our XXX continued efficiency the X%, cautious challenges. retail to and versus points basis deleverage, down by we Backlog to XX year, year in XX.X% discounts prior

partially X.X% conditions year, full $X.X XX.X% from to XXXX, higher down discounts Segment XXXX. price and RV retail compared were margins for the declines prior increases market unit billion, related For by of volume driven costs. fiscal allowances the Motorhome chassis and to by to for levels revenues year, fiscal offset segment higher EBITDA adjusted were related

the EBITDA the near Motorhome longer the returning EBITDA ongoing our the for double-digit margin to Given margin high retail segment term. we in RV term, targeting a landscape, adjusted are single-digit current in

to our higher lower down and the million, volume price Marine sentiment the for down include the year, partially discounts and allowances, year, higher adjusted XX% fiscal for fiscal margin basis price to year segment. million driven and driven XX.X% versus for XX.X% revenues the Marine segment Marine $XX.X market inventories. driven sales decreased partially higher up cautious allowances. current segment increases. by EBITDA related XXXX, XX.X% prior prior from XXX quarter, unit Let's year discounts discounts offset rising offset prior points by Revenues due Consolidated and by of to the to allowances. conditions million primarily was turn by and of were fourth by XXXX full Backlog Marine from related increases, the $XXX.X from results $XXX.X deleverage dealer

fiscal prior for Marine fiscal for year, sales For as to fiscal EBITDA historical our the compared down balanced adjusted mix. full the of allowances overall more higher points to year. margins portfolio discounts the mix, due year Segment full to XX% XX.X%, XXXX XXX and our full compared basis comprised were our versus year reflecting

balance the to sheet. now Moving

of the flow $XXX.X items, healthy a net approximately Cash outstanding range As by the ratio the Winnebago XXXX million partially debt-to-EBITDA lower in working X.Xx, of net in compared very is a our of $XXX.X and end just low X.X year, of end to of fiscal Industries adjusted million approximately a million changes in representing under targeted of from favorable our although was million debt, had delivered $XXX.X $XXX.X which quarter, noncash the last record for X.Xx. operations by profitability decrease capital. offset to driven

$XXX.X generated in fiscal million including As I $XXX.X free million albeit quarter, fourth strong fiscal earlier, year $XXX.X company of the from and mentioned XXXX. in in XX.X% XXXX the flow cash million full down

capital for through sheet our and on Lithionics fiscal growth business financial strength remains of balance XXXX's strategic a as allocation supports in Battery. focused value Our acquisition source of by us evidenced strategy, our delivering to drive investments

efforts growth balance our our where to Our capital to our improve shareholders. supports return operations, capacity sheet strong organic and continuous further initiatives, increase appropriate

quarter, of further to in $XX business. share, gain increased strength share by market the in million and our grow per quarterly underscore repurchases cash years. to reflecting confidence executed trajectory fourth profitably XX% opportunities revenues, the our have of we share to and $X.XX new coming and we on our the capitalize commitment During the ability our actions long-term These dividend

illustrate me from our reiterate turn once strength XXXX fiscal challenging the Mike, our the relative share just our versus things I conditions. I to up sales the Despite down market XX% that the shipments year back were year XXX,XXX to fiscal our again despite pre-pandemic to in industry XX% this, for during with industry, XXXX. XXXX To in XXXX. XXX,XXX. decline our as performance fiscal Wholesale Before XXXX. were year of RV RV want performance our industry I fiscal concluded bear shipments the fiscal in That's

are EBITDA up versus Our basis XXXX. points XXX adjusted margins

Our dollars up adjusted are EBITDA XXXX. XX% versus

with XXX% Our These growth while acquisitions we we of today and and larger are free to is XXXX, XXXX, our our even that, opportunity than flow more an XXXX driven versus turn Barletta the stronger result and you. versus market capitalize has than of strong back adjusted acquisition back executed. In electrification more closing we and as on a now pontoon to doubled. are market is strategic a the we the up our of the in opportunity years have much increases With entrance company XX% the GAAP have Lithionics, comments. in acquisition provide cash by of but result into also up some to ahead. Mike Mike, diverse organic to EPS with reported were the call EPS are I the will summary,

Thanks, and Industries' And Q&A before few we now continue session. for Bryan. I and as of to dynamic navigate maintaining am grateful a to final service. our innovation we quality, get the on conditions, market focus proud the comments Winnebago team while

we where our communities doing to on addition customers our culture in well, the to doing good live, in In focus high-performing continue play. work and and invest and teammates

away hours Foundation on top physical is the million countless access. on During from from of plus Winnebago $X focusing Industries our community, outdoors fiscal gave year members. of and record-breaking XXXX, team volunteerism a our we financially This

loyal to launch progress specific later market also the responsibility, year. late progress our and inclusion, marks this we Grand diligently our offering Grand and working to we of appeal, milestone select are scheduled announce make the brands year and poised other will businesses. for launch year. of Design's under anticipate next-generation segment. in Newmar Design to excited a showcasing Winnebago our These bring calendar outlining and models we organization forward team all is foray differentiated strength along created in models the XXXX beginning dimensions. Today inaugural to RV shipments release our life, XXXX. lineup, a and brand consumer late make Design giving will XXXX areas look calendar Grand early into bold motorhome most company's this unwavering successful employee sustainability, current safety entry Leveraging Our inherent report, motorhome history prototype dealers corporate releasing and the branded one as corporate new into to are complementary our be represent continues exciting its our base, The on responsibility with a and to in fiscal motorized forthcoming another and with dedicated meaningful we this of to fiscal to in in

and revenue. this offerings months, about impact marketplace. currently strategy, brand premium is from years. to excitement The Motorhome. in this infrastructure surrounding to Don fiscal the the leader be we start-up Clark, these active opportunity dilutive today new product X-year Industries But Grand we exceptional the further beginning sharing in standing supply chatter wanted thereby has of are Design for of the and well. Industries look extension due Winnebago cannot the note the founding strategy of employment and for Winnebago to delighting In an bring partners our enriching potential and confirm incredibly and As Design network in to our portfolio palpable, as with The engage will we distribution to to up with Design It extension chain forward financial market, meaningfully in to a important wait to dealers also company rumors motorhomes to the and XXXX Grand business, this recently more customers. the development, line team is our one we accretive bottom Grand product increasing the our is sizable details year positive and future coming costs limited valued manufacturing agreed that

the contributions his for to company. are continue support and to Don We thrilled appreciate and

confidence results share to recreation not to the and our industry of but outdoor drive recovery fiscal my gains. within enduring diversity of market the harness As This Industries Winnebago and our places we bolsters also grow. portfolio strength position diverse only our brands year resilience, enviable continues upcoming an premium XXXX, in enter the in

X objectives. Our unwavering core on commitment fixed remains

and offerings, the for Reflection new profitability and nurture express dynamic enterprise. market offerings we agility, reinforcement we landscape our of as the our focus enthusiasm investments new exciting already customer customers long-term positions. come the robust to and with expect influence second, towable access Grand the to These satisfaction our and of but amplifying surrounding unwavering our premium with precision in preservation dedication the models. with our championing We Simultaneously our share quality address that and together brands, also Design remain and maintaining vital as from new commitment vitality resolute with forthcoming and in features of perfectly affordability recent This extends will market recognize aligning to are to dealers. Furthermore, epitomize pivotal and First, to balanced proudly partners well also not the top extensive with navigate the innovation optimal across product brand the the managing Collaboration our XXX role mix our actively releases, our inventory a together. play excellence. product Winnebago esteemed including We discerning only our and considerations health portfolio. innovation our dealer priority. and they in-class have aim

surpassing innovation Motorhome commitment In commitment endeavors our and of and market Design well reflect our share. Grand our is of needs ever-evolving we announced opportunities. to the through landscape they relentless portfolio, the which of market expansion our Lithionics reinforcing growing pursuit innovation pursuit dedicated and customer recreation our acquisition launch remain and to of the existing our the in the addition strategic commitment These of strategic evident unwavering as the initiatives to other our exciting Together, as investments development strategic forthcoming industry. Battery. and of This and anticipating outdoor to include exploration excellence demonstrate recently dedication and to under

expect ahead, inventory Looking the of coupled enter year. first half dealer we of on retail particularly dynamics, with take current pressure the through fiscal continued market our XXXX, as amidst those retail challenges, fiscal we to apprehension additional

formidable. first will Our and be quarters second

models we that However, inventories consumer we further in and as fiscal of rebuild Dealers inventory a to bring as enter normalize stabilizes. growing the anticipate back additional will XXXX. exhibit willingness and demand levels half

management As and position, efforts, prioritize we year capital tireless the of an robust results inventory tangible sheet supply do persistently solid operating These chain consistently team's so the our performance, which of and expenses. our working efforts, fiscal results. inventory, and a with embark resilient flow the XXXX, capital and profitability cash meticulous within with the our our on showcasing employees of have and overall than production healthy exceptional improving talents optimization combined of X,XXX allocation we the streamlining and the capacity, more underpinned of dedicated balance prudent

unwavering in long foundation XXXX, executed combination Our strong term. shareholders this $XX Notably, and served return valued during unequivocally for fourth business to our year through share quarter, fiscal enduring the sheet which as returning and our occurred million than more million $XX of of our throughout a balance in repurchases the confidence dividends. underscores the over the strength potential of

of our remains dynamics continue adaptability commitment to the market, we to ever-evolving unwavering. the navigate As

to premium in We competitiveness position esteemed focus on our conditions will adjust maintaining steadfast brands shifting with diligently and monitor for and securing a response preferred a market through market profitability, back our open turn over remarks your general will will to who questions. the operator, for call associates. That with collaborative our partnerships this the now to morning. I the line concludes prepared

from Hardiman with Our James question Instructions] [Operator Citi. first comes

way start I that's have assuming high And going talked means the questions I I'm single-digit our that out guess start-up the X dilution Maybe to through intensify EBITDA that guess, the in assuming I'm to quantify of prepared margin on about I the here. Design in or Is coming Grand I news EBITDA. motorized make that that with earlier of think Grand then you But first, out will does segment inclusive congratulations in we margins that what motorized the I'll as near be term. remarks, costs? dilution news. the year? XXXX? there. the from getting Design

that take James, is one. Bryan. this I'll

million dilutive $XX QX. total up million by $X in to in in to $X to It ramps million investment QX is $XX income to Our by XXXX. $X fiscal million million $X million pretax from to

a We'll be course, is investment, fiscal segment forthcoming to But which be we that is not that corporate in posted until accretive, investment therefore, time such reported. dilutive will, that Motorhome our RV the operational. become expect of all other that's segment We be reported quarters XXXX. to as corporate sitting as in keep today. to here initially intent our will to you our investment This and James,

lot makes just it. we could dig maybe a around That lot then in. questions sense. Got a of And ASPs. There's of

characterize in And spur to last the XX all months, of Your give of being the rest outlook? phasing? call There's you into should obviously, could it, least is a year. pricing guys channel. think competitor of motorized. do high if to up. the How half think you decline or, then but by about discounting I But there's XX% bit the then single-digit Interest it down. taken consumer, be decent how to the some would coming there's next is mean -- that do ASP of guidance, don't maybe are out this. a the like you industry demand? towables, seems of rates, amount the I and in think pricing channel talked the about going little probably will Net-net, of we biggest the you you a help a first right? going about at year in less we guess, decline for affordability How actions the pricing interpret speak consumer And the you and how guys

against, and I'll that then in the and In a it market there that, we prior pretty discounting you some we're discounts with well question. Mike in with a your in QX, the because today. commentary start lot about robust a where there's it allowances. ASP turn was Starting and talked allowance still. know, I'll for was year specifically witnessing to marketplace as as That elevated James,

a the or to have also we say okay? characterized of -- -- as discounts while not ASPs So said also out So elevated years, the that they okay? relative that say certainly environment. as allowances, been thinking but of they've talk they're of wouldn't that, it I a about I'd having spiked grow competitive prior marketplace, to I'd them say are So function just normalized. of percent inflationary with they historically, having they've and have sales, not line where

basis, But go briefly. For currently we price in space, single specifically And the on modest see chassis. on still to range. see okay? continue That's modest the we're mid-single-digit motorhome segment we segment our ASP here a on low by pressure pressures ASP because expect what chassis. to that, motorized motor We'll I'll impacts, increases ongoing the increase just of unit-by-unit now. motorhome space, The home happens absent to mix we the what see expecting

Marine the the fact, On commodity inputs consumers. end components, I those range stable, towable but I'd our expect impacts RV it our characterize our marine we and on today, to is to of are, seeing pressures deflationary ASP within the or the here motorized some in today us impacts deflationary in of seeing looking everything fiscal the increases deflationary along mild across we forward motors motors XXXX. sitting we're as to some propulsion into here mid- we more stable. as seek impacts space, to pass is else would, still some dealers the in price the in from ASPs as single-digit high I'd neighborhood cause the sit pretty that see some the inflationary and pressure, marine. to say

allowances. I'd the the So some characterize that's ASP of how moves, discounting

You here as that color other have it from and any relates it take I'll to question. ask some to he your add questions. to other sees Mike

this I'll say, way. the question James address affordability in

our potentially to different we important an under that in price our the gaps point and We think to models affordability product, introduced examples. lineups XX% fiscal have the total brand, product affordability points attack which addressable of brands ARIA price from are decided pontoon fill to of point-wise introduction get Barletta from I'll new in quick or the some And new market through that XX% expanded X market the the we In market. 'XX, standpoint. our to

has entrance the Barletta So into access point fifth is fifth with affordably particular targets an reflection which wheel models. the is Reflection brand's then travetrailer business introduced conventional branded line. $XX,XXX X the introduced the and opening Open influence, priced the area at which price market XXX, showed for brand We MSRP the the traditional the at below. reflection And is And is below the we've or which wheel brands, Grand that between Design business. new also Winnebago Solitude affordable our House

on anticipate we've opposed through to fiscal the products. dropping And SKUs, to here business our of chosen decontenting with after go And margin year. existing we new really successful so go our and affordability as through introduction be we'll that as 'XX we

goal like just you're but and extremely up cost I Brian, what ultimately demand? effort hold margin seems taken That an this do a your to through that in pressures think that's I accurate? like year wanted than going way as helpful. the it I've sort time, of about that to of margin a seems spur Is talking clarify, giving to to all of the little the is up ASP. about rather is It ultimately to lot

line between to Mike and focus we to well profitability we'll it think balance share. are characterize that I our do in that's efforts to profitability, continue just as as what Yes, market as margin with fair margin react in around relates performance certainly and always said

that's that to our would characterize and like so intent James. And I'd how be it, --

comes Our Stember MKM. next question from with Scott Roth

keeping In to dealers of facing they the there outside talking guys of that Are any price, which to are in months? some costs, take slower floor are factors dealers reluctance during from other asking plan the economic like are that them inventory ordering? you about of the participate

is This Mike.

on bigger aging is this to facing rates, dealers us one attention to floor factoring certainly total RV certainly and see element our think they're touched want business, of do their the we is the to that of where I I that the industry willing the state, the you also amount probably dimension though, think in costs higher but interest product side specifically, are in models, know carry. elements I as on to the into of play. most due of higher plan that most

we quarter, between of fourth gross end are in this August fact, our in where since with end the X,XXX of the probably stand is inventory down as pleased And our this today. position We another morning. and with call our of RV units inventory field

their it that our with that total can believe they're appropriate. And will the And as is continue inventory be. so as we on inventory dealers any begin we for destocking taking anticipate our further come We the in fresh We going don't we factor drops. optimism inventory they're really brands our retail But comfortable any determining carrying. of And more we to further inventory believe anticipate to months in to think, fresh dealers significant the volume and incremental the to to sure partner volume make with be be, will lots onto lightly forward. is

last Got it. question. And then

ERP bunch was your Motorized, Class a the inventories up. related a of meeting, a Mike, the your that much was items? it remember on talk that I How down And Looking bit of but of some were at getting maybe Bs of was Is rich. you about at open house backlog little issue? dealer inventory to combination the did those both

year to inventory today a it Class lower than XX% XX% is probably field neighborhood of ago. the B Our in in was the

terms -- from specific So any towables has of fell whereas the been business need Again, chain to segment the different really to and and of towable lower-tier the XXXX business the calendar but a degree previous those -- bit XXXX side. period, probably SKUs. little correct beginning the comments mix inventory field inventory years in the potentially low haven't tightness we're around chassis, motorized in challenges in were terms model segment to about to certain the or was on year the the levels to volume levels we also brands because The challenged more in probably terms had a towables the year-over-year. inventory, prior in that of was that of rich comps of the we've the with had supply probably of so Motorized motorized part that ago of industry but more business

So comfortable field stands lot where going where field I'm we again, look earning our sure. business with inventory the increase of towables forward stands I'm inventory the to comfortable to with motorized today. dealers again, forward today. our And

'XX ran anticipate extensively around throughout the year. We House. having Open as into need some have inventory we rate selective support that promotions plan floor But the run don't do here to we

Craig Our Kennison next from question Baird. comes with

let's So Craig. back come to

to Let's move in to come We'll Craig the call. later on next back the one.

Our with comes question James. next Joe from Raymond Altobello

first question lenders seeing retail of lending cautious guess on hearing I side. from or a you any perspective? becoming more Are the

Mike. is this Joe,

into to that existing depending prevalent dealers, situation a sizable at they in the of is some that our with for check the it, retail upgrade that trade in. on around product our We in an cases, and are time. I customer at negative with a unit hearing like this new of some have existing would they material not has existing out that In and customers. would to or weakening to business are product. equity may bought say they most when to what current write get retail financing of is especially a get headwind that challenges do probably

challenges that trade-in would And we're I factor much probably headwind so retail the is present a financing any than seeing bigger say at time. the

certainly what right, Joe. cost just as availability can the echo imagine, the is And is is availability but to Mike said, there, up, there, the you

rates credit getting we're some and So handles digits. with with into double retail lending even ratings now seeing X X, lower

So factor. that certainly higher a is cost

to respect with my question. mind my read You next

perhaps thoughts a in the that got that Grand have So that, the Bay. some Design to maybe Green like with additional on with now follow-up now stores new Camping you've you opening and relationship World stores

Yes.

the World had with start historical Winnebago-branded me Let business. our more relationship in that with Camping of we've

Winnebago on as Winnebago And we locations business do the on, dozens of but We World side, Open there. Camping House Indiana many the and Camping all different have of side weeks have the locations are and we've done of Winnebago models with in off conversations the years. a ago. in healthy around mostly They line. productive Towables with And at Towables Winnebago event recently those Not on brand of motorized World well. line locations. some to Camping with Winnebago the relationship the business World Motorized select carry full-line a few continue as through for on had

Wisconsin Bay, the Grand Green We with Camping in market, World Design Store You store. Camping looks recently coopened did fantastic. reference the an Design Grand World exclusive

this was first location in the an is Admittedly, since weekend, think the experience working this opportunity format the Camping with the be we inception markets. other our Camping and more really World I But is Camping exclusive to with World of World that an past store influence and us Grand that we opening crawl-before-we-walk of with grand for in brand. this some are Design's about will is team. customer selective style possible productive a it relationship. take conversations sure And a to in very that of discussions make having kind

also know, customers this relationships our experience complete call solely sales. our our are focused are so also how the on customers on in dealers to know, They for the especially Just our cared you are with and focused but not stakeholders listening any for aftermarket.

side any well, high with of comfortable OEM So the conversation level. expansion taking as with dealer where at to service any and includes the dealer we need a both the care get the on a customer

retailers, Grand World. that expansion Design discussions so And part including of their a any conversation with of definitely Camping any is

comes Thomas-Martin question Our BMO. with Tristan next from

that, kind mid- some high down gave Could of digits. to then ASP margins you for think decline You by us we Towable extension type and kind short the headwind of what that EBITDA your on single term. is How profile? should quantify margin of of about guidance margin Motorhome

to ability to cost reduction deflation. Yes. as cost tied a of ASP, many -- We even equation regards or think kind we'll well, including our the be able inputs the to, manage in It's to really with the Tristan. that

we So margin we don't are some anticipating of as I that ASPs. up those want to convey ease giving

that in or margins help the that we're the and in have well here, to both we continue amount volume those will that leverage well term to forward, as as cost higher to strong expect in the we'll really the we near volume and basis that to provide initiatives in that other reasonable new of initiatives us plus saw range that the product generate on a for look to starts minus able including Towables should competition QX, in you well impact continue to with the business. we as think recover Mike Towable's introducing already have as versus and keep here alluded ongoing as I be long great the the them double-digit to products differentiated as tailwind be initiatives term continue margins the place, see an we that

-- pricing? you are getting Got what support then you in trying it. seeing are supply as you and of anything bring or to down -- And you are affordability terms are Okay. address

on continue with suppliers reductions suppliers are they like would an challenging we're some little And those they of in the productive are concerning pass key But some the see is good Tristan, discussions the in productive we cost a that need headwinds are on pass the are to increases Those us. motorized and needing still and cases, to conversations suppliers I cost category. OEMs less with cost most cost on some where management. say chassis where our having to experiencing larger in are from agile to happening. that changing suppliers have our of curve follows their conversations we most about the them cost seeing to is those in their materials on for raw suppliers index-based relationship us. In in with are indexes. situations, cases, having many certain just we that or

we're good to the net, bill continuing on So some our of cost our in from getting of lower suppliers materials. responses manage, cases,

Research. with from comes Fred Wightman Wolf question next Our

a guys talked to back I acquired wanted longer getting XX% something seen XXXX, increase the come we over market Grand term. stats back you've share consolidated of launch. when you've about I in for mean And to sort the to also go to meaningful brand back that in the if company. Design just Motorized you

just you contribution potential or down could from be share the So that sizing aspiration the from you frame what how can or you're of road? think perspective the contribution a sort market

to varies believe target funding from this somewhere that strategy. overall Fred, to of Grand total it in this Design brands. that a run to XX% our brands, market run the by the our incremental was and market by positive. Motorized strategy would Newmar, into business capital the b, net projected somewhere X XX% to meaningfully Winnebago be addition we've have a it We we segment to existing our in absolutely we year, but between business be those If stand-alone be will a, between today, X share time. share. investment not that motorized ROI between, specific and and quarter. I'm not was standpoint, share. accretive share but going at it didn't, between a But

rollout best team to revenue been rolls next minimizing next of probably very of years the of several about the years. internal of of fourth X lineup this conversations existing this ability to beginning out graduated And have and course We probably our over motorized in the will our fiscal Grand X be quarter as our cannibalization Design intentional over the with 'XX. product the a share

that be But that differentiation standpoint. target can the way anticipate And those we product be we what guess, for to will attack mean aspirations XX% the us, to we will it details we standpoint that are And will unveil that has on a some So -- incremental. this be important. will important are. potentially a the I ready plus. that, that be from further more be get But will be as and also know dealer specific will just from market

Towables but Grand not Design dealers Motorhome dealer line new Design will Design today. consist some do be Towables crafting will of consist potentially the a will network Grand We of our of dealers, some that it Grand carry who existing

may not motorized And some some or of our these Winnebago Newmar. of may or carry dealers existing brands,

So details more come. to

the some in the commentary wholesale retail you've past, outlook. Mike, industry of then, given and high-level on sort And helpful. That's

today. anything or stop sort I that the remarks there commenting that's case? your of share there hear on why maybe Is to in if that didn't could prepared decided So you you that,

really We to that in script. question. plan comment. our the We for didn't topic specifically include just thanks Fred, not did not

last hasn't I'll call, mean and really explain I Our changed our that. probably position what earnings since materially by

we retail XXXX, look in there marketplace. estimates out the many are calendar at As

which retail record Our XXXX, around we was to comment where on would calendar latest calendar in XXX,XXX be will flat of units XXXX roughly think end.

by calendar of one-to-one to that the calendar period, that continue in total retail with do believe We a is number. end that for an that XXXX. could XXXX, believe we that shipments wholesale that, appropriate approach so And target

so XXX,XXX And unexpected shipments wholesale developments XXXX, issues. could in sands calendar equal also any macroeconomic other or

And believe I which so the current from meaningfully don't position, changed That's our where stand. quarter. prior is we that's

Jefferies. Bret with from question next comes Our Jordan

for talk just being single rolling about the high SKU In price through you out total passing digit what you ASP mix, you're offerings versus lower point to mid-single that expectations decrease. same see prices? digit Could deflation opening

our role down 'XX, see to you that a to I But expect that's don't I X%, we significant in here as might -- calculation. is mix basis. don't a today, time it sitting on how through neutral more change ASP mix That say, sitting portfolio today. play in but here really calendar progresses I Yes. as portfolio which much of Bret, We part some of Design. -- know, from impacts smaller our Open House, there think, the Grand introduced introduced intended Winnebago versus the of message the larger to might the The brand we Access, Winnebago a have mix

And we Great. the schedule? and they dealer delivery from of the that about sit open expecting are I the those a a of a sort you the Tampa are how talking for at the But challenge. the question the guys calendar orders 'XX Okay. hope being fiscal you about on house sentiment of sort after on production of show? sentiment half do of mean, timing rest of expectation backlog first then think and the dealer year the sort

Bret, this is Mike.

that. comment me Let on

our experienced what Open talk at we let with about me House First, businesses.

brands businesses -- Towables. Winnebago Towables under sub House and Open experienced Winnebago house open Open Open XXXX had at house businesses Newmar, XXXX of Design, displaying Each at the So Winnebago increase brand open each an that at X the we X in versus Motorized, X Grand order our House, during our Motorhome of essentially House, has week.

ordering a dealer So coming we of out increase. of see in XXXX House pleased that tepid were environment Open really spite to very

Winnebago of that we to that mentioned some Motorhome of Benz Mercedes underneath the orders some nice echo drew business. is on the today. Elkhart. And we've products amount here haven't like chassis also a the even in referenced new a that due And

seen I retail but I backlog from dealers is in on which may in are pace, the that will that we a improve sequentially think through are again towable this we mentioned side. beginning grow largest on be towables backlog development. have comments, nice September, that standpoint, the From think timing experiencing. script obviously, the a contingent bit segment, We And have our seeing June to that a

ago, it's in position do As time, at that we excessive our we meaning old mentioned, minutes all. I like inventory at believe field the not this or

as personnel they're And comfortable. so the are sales them with working product have dealers our to take

results see We dealers will the schedule just this are disciplined about information production fall. could to future. at in because, our did have. dial product we going when morning this primarily they optimism retail the we again, it as are year short-term quarters market terms on based production are very rates of in turn challenging share they and/or we We X backlog the But is any of on their be XXXX take be mention that think continuing happening tied about that the first not to we the locations to fiscal that

trends some we've pleased recent out we're again, Open House. with order seen coming and So of our the of position

comes from Davidson. D.A. Our next question Brandon Rollé with

ahead on and next... to go the move Let's

from Our Noah KeyBanc. Zatzkin next comes with question

appetite Hoping to the thinking how moving RV you inventory side on a in contrast could side about 'XX? and dealer you're fiscal channel terms just there the of bit what you're the of demand and retail relative through dealer dynamics compare evolution Marine and seeing

we luxury major What's of we high marine in the Mike. a Chris-Craft segment pontoon a to very have fast-growing reminder And the And in specifically. is of in brand that, end interesting This I'll market. then Barletta segment in speak a have our pontoon a just brand with business. the obviously, the market.

inventory saw the the retail about destock in category and mix. But aging of some of as stable work activity been pontoon year. that to retail we continuing pontoon trends dealers inventory the especially been certainly the that relatively the to seeing what's over segment are been has segment the has in We last that around positive aspects segment compared on RV

to also to their first up continue in weeks on X up of destocking. we but In Barletta meaningfully. so 'XX through But at weeks or or fact, 'XX year our meaningfully date, is to their inventories, Barletta X the We're product retail X also the fiscal contributing retail they're normalize our the use year. seeing is fiscal dealers disciplined to are a that taking first

we on think of my spring side. RV see being marine well once winter the position We the some our again, year side So get before second calendar marine you'll as try and pleased share. first the and comments about that on But We're X.X% their shows challenged very around the some to the that in to as on we quarters dealers better to about similar continue of inventory to I'm XXXX side begins. good retail with to what Barletta business's take most pontoon see brand and pleased and continue X%, continue for aluminum that brand, to our continue pontoons is be with now future runway.

launch on? which you Motorized mention the class housekeeping question. one focused will just Design be quick Maybe Grand Did

are part they in that mention is Design publicly the and share sharing strategy not we working early to in that XXXX. What sharing morning time. this you specs again, details they're We But year the to And worked come team the seeing that about did all this new was The we comfortable happening Grand of being probably on. are because that will to to or specific choose at hearing developed something on. and end. their that probably more in can lineup calendar the anticipate future not is you the details and specific with business time wanted future

there. give X minute, Those Operator? just us explore our we the call connection while on

with Rollé D.A. comes Our from Brandon next question Davidson.

Kennison with operator. with back check please Craig Please as back Craig Operator, check as well, well. Kennison

open. line Brandon Rollé, is your

issues you seems with there then Brandon's Craig the And really with some There be check call. if line. questions, to quick? we'll conclude there's further Can no

left the I'm further not queue. Craig has questions. any showing

further questions, Yes. conclude then we the No can call.

have participation. you now for Everyone, you a the disconnect. may Thank your conclude day. great and This program, does

rest joining for please Thank your us, enjoy of you the everyone, day.