Winnebago Industries (WGO) 23 Oct 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q4 and Full Year Fiscal 2024 Winnebago Industries Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ray Posadas, Vice President, Investor Relations and Market Intelligence.

Thank you, operator. thank fourth joining earnings quarter and our to results. everyone, XXXX fiscal and morning, you us for discuss Good full year investor.wgo.net, our website This our today. the broadcast being later will and at call on call of a available live be replay is website on to release news posted fourth earlier this was issued quarter The website results morning. our and with our Results. the Please website remarks is prepared along with note our our that the of available earnings Investor on slide under section deck Quarterly that follows Relations also

the X. made statements may cautions statements conference from laws. could a differ which regarding company's results to Slide inherently are risks today's SEC statements. in to these to actual read. operations Turning number company control, many its Winnebago and uncertain Certain and involve be call number beyond of during cause materially a factors encourage you you forward-looking The filings, Industries under factors, our statements are These we and identified of that forward-looking considered securities are of which

In to to measures GAAP press the on turn addition, earnings GAAP the of X. measures and will measures comparable non-GAAP our refer management the reconciliation financial are and release. Please non-GAAP available today's Slide call, on to

prepared Bryan Executive I Winnebago be overview to of that, take Michael the outlook call turn some questions. With Slide our are market the conclude XXXX of me today's to Mike. discuss Mike will and an level, the with with the and Mike comments please financial will X on discuss performance. business forward begin our a our fiscal our Vice Joining will strategic guidance. your happy over as call Chief view management provide our hand QX will Industries; Hughes, President and full to further President on Officer and Senior Happe, results Bryan remarks Chief of and Financial year at Officer. and

discuss us morning, results. you for our Good thank and joining Ray. to Thanks,

the across employees brands the by year. work of begin Winnebago Let throughout me portfolio outdoor recreation hard Industries their resilience for our thanking and and

environment RV as and marine XXXX difficult serve at challenging market conditions Design, Lithionics and return to to all foundation a culture a fiscal Chris-Craft excellence year for retail Grand a in Barletta, Although the made Winnebago, industries, collaborative improve commitment the Newmar, growth and the as for the future.

the are get I several there our want we morning's Before convey this full results, into on details year key and messages of to call. QX

in occur would anticipate into easing RV First, and while XX over in the quarter, the XXXX, more the third to decreased months. fiscal quarter remains interest Motorhome of market XX we category. of factoring as in expect gradual challenging this we the materially We our inventory levels projected calendar the retail improvement term, environment second move next short rates to the

to leadership changes the made Towables affected Winnebago have those Second, Winnebago substantive the we Motorhome of quarters. performance recent operational challenges at remedy and financial in and have that businesses

month's shipping an to out the Hershey prior Third, gate. inaugural several created last of year. and delighted of Series a portfolio, we shipments our at a Series we we standard RV annual believe financial RV House. with Open EPS businesses including vehicle that time. of the positive QX. dealer forecasting XX% modest units noting, midpoint, improvement RV adjusted in to by the set coach. And Design's first The for small Lineage from are appropriately the market cautious show are worth the uncertainty, M are Lineage we Grand the the the takeaways segment. The from Design on growth of top initial across began are for number support M. line with quarter and light have Grand There Dealer benefits team, The compared of new response was featured new Motorhome consumer and entry finally, enthusiastic providing the in today, are at But we being C guidance excellence the Class In RV continued

While momentum production our first fiscal to the in in Marine in gain Lineage segment, Barletta as meaningful we half the aluminum of not pontoon to ramps market expect contributor a continued U.S. market. take share XXXX. In QX,

million, retail the in by In recent volume period XX-foot underscoring of share addition, to and basis, confidence August $XX returned most driven combined in $XX as Launch by repurchases market balanced fiberglass has form strong weak XX-month we to 'XX, has growth in sheet dividend the the same fiscal month compared QX, cash shareholders XX- part payments, Chris-Craft. new our to retail positive its a of iconic free our periods enable balance Winnebago well. Despite capital the the X-, the marked retail its and a generated Chris-Craft's and trailing fifth maintain million allocation in thoughtful flow of In XX, cash market and increased free consecutive a and share XX% our Industries' long-term X- retail approach. brand prospects. in growth flow this with us X-month in environment, year-over-year On grown

in in in 'XX, fourth quarter compared amidst on through Turning X.X% year now continuing towards to aligned calendar remains shipments month estimates in RV for of environment. underscores of what progress aggressively macroeconomic the to XX% that wholesale a earlier and our anchored We with Industries universe XX.X% we our at Slide the of year-to-date. and the from manage Winnebago addressing turns industry RV period. median Within continued X XX.X% the Inventory and XXX,XXX with which slightly X. down XX% projection. August This of inventory first remains growing dealers, range Wholesale rightsizing RV for XXX,XXX about the The 'XX. down wholesale were shipments mode, very XXXX to with year-to-date shipments destocking a are inventory the year-over-year calendar and of for towable calendar up demand shipments were down fiscal RV XXXX units, Industry Association reflects in year QX of months year-over-year the XXX,XXX down challenging portion units. August consumer was affordability. Motorhome focus industry production up of industry

Turning to X. Slide

XX months ended For the total basis 'XX. our points XX.X%, was market share in down XX same the XX, period for trailing August

noted believe past coming I our quarters QX our have with contribute We new believe to stabilizing the deliberate months. will partners. the is we call, long-term that we market X in strong over introduced on approach fostering products As dealer our relationships this crucial for share

and to Class of year-over-year Newmar's our full growth X pleased end which periods August. Slide the through segment. As of showed positive a share lines, the Motorhome Barletta's X- the trailing momentum product showcases in were result, Winnebago and C both across we gains see for brand continued motorized Marine XX-month X-,

year-over-year August For the to months increased trailing through X.X%. XX Barletta's XXX basis market points share XXXX,

Our pontoons dealer exceptional driving for consistently the customer premium our and network competitors, results experience. outperform elevating

Turning to recent highlights on Slide X.

And Winnebago brand's as and Barletta the some growth. further we market Enterprise President to President of in influence previous our our all Winnebago During Winnebago Towables team. was Boats enterprises played successfully and addition of executive oversight the operations, Chris, boat broad we Specialty Senior achievement share our who business. leadership in manufacturing and enhance experience changes Barletta Winnebago-branded strategic brand's share. Vice of veteran Ops the businesses. double-digit as the in chain supply an Winnebago X-year Chris West, Motorhome the of to named and of made integration quarter, Vehicles previously impact a served led the market be and vital invaluable and His role of responsibilities Industries, will Motorhome

and business towables is strong Clark that to to to brands Winnebago-branded Towables in Winnebago Grand and his we Group President me. reach are our These will to in phase insights, evolution. changes our takes role to operational continue Design successfully Both has to and in Chris trusted bolster potential, choice been designed have Don during acumen market expectations, Don X To extensive our Winnebago-branded His it full addition report This centralizes our promoted next Our Towables business November the Towables of Don and Don imperative lead what business, knowledge leader the as the to our ideal the growth. and their as will position recreation the logical drive will to its of marketplace. President it to Indiana. has in X. his the towables the expand RV. underperformed make Towables team compete outdoor in enable space change premium of next to responsibilities oversee win effective of expertise

I showcased at plans, brands, to comfort. am year which innovations. we to Hershey to and Turning innovative product Design Winnebago our new models Across RV XXXX Newmar and introduced recently Grand and we bold demonstrating technology, nearly our much commitment show. our XXX floor lineup, our model and the design excited of highlight

the Series Lineage expected, and brands the our expectations customers. to of its capacity the exacting of designed As up first superior its loyal of across lives dedication high From of premium M, motorhome than Design's to was standards product C highlights model. ever Hershey Design elevating for These our thoughtfully driving portfolio and to Class Grand moment customers. underscore our Grand show performance, innovations Lineage interior outdoors payload every more the one our

Now let me turn for Bryan financial to review. the over the call

morning, good everyone. Thanks, Mike, and

to to year strong. the we impairment million focus EBITDA reporting investments current sluggish million due and in primarily share. I These capabilities. The quarter lower in in that unit, increased and fourth flow, prior impairment. We Slide adjusted including repurchases your healthy bringing conditions Chris-Craft impact the Operating the with of digital of costs resulted start-up call per also marine the call margin the quarter, X. Chris-Craft our impact expenses impairment balance this remains remarks, associated of adjustment performance a Starting adjusted spread the business attention drivers the housekeeping demand for down Design the bought the the fourth Beginning an full $XX continued quarter, calculation fiscal million information cash the $X results prepared overlay to factors shown in we asset back and by performance will EBITDA XXXX no our Motorized longer challenging associated earnings year charge in are want Chris-Craft strategic million items. As Note consolidated diluted adjusted and shares $XX.X industry. a of $XX of that generated dividends our increased data its was launch on excludes to performance. engineering, million. I year fiscal my the We to Retail $XX the the the in result recreational key important Grand on payments driven and paid and reminder, development X dividend quarter. technology in financial of of quarter, in with with sheet was from from period. in the

our fiscal on XXXX made As dilution has notes. impact of fiscal note previously the to largely adjustment risk to year This year. offset There this from adjustment convertible prior disclosed, overlay spread QX from was economic overlay due this the in call the decreased call XXXX. no earlier of was represent significantly from the repurchase spread

You'll adjustment. that this appendix historical note that table of in included the have we adjusted shows our the earnings excluding presentation EPS, a

to notice wanted give first we with fiscal be information. will backlog quarter we early no segment Next, you results, XXXX starting that providing our longer

backlog typically future we due disclosed, on that that are believe sales future trough key quantitative backlog be into not our are are due the the KPIs, we option I'll with can postponed or be Also, meaningful previously guidance our performance. To more this on may As necessarily an backlog time what first for fact measure EPS. to future, consider to relevant the financial not of without more dealers dealer the adjusted the about in providing cycle. annual do operational to provide we of is orders measure of consolidated shortly. orders Therefore, at thinking be how insight to and generally we any place canceled and and the at slow revenues penalty. have a financial accurate time, analysts

by RV price average volume. reflecting down was some year selling an our plant Turning Towable year, to in increase higher operational management to making attributable production, to in inventory in warranty selling related push rather Winnebago-branded related brand and which product the adjusted EBITDA due segment, with we to business by activities per two, in challenges in roof last as and per Segment this from partially last a mix, favorable are a unit under quarter, this Winnebago deleverage inventory starting write-downs average issues sales brand. for to as to quality to and expense price related to margin fourth unit a products trend, product from to consolidated reduction issues through product versus change. shift business. These mix led Slide XX. down than prior towable on performance in this was incentives offset unit our warranty reduction year's Revenues customers were practices dealers these due and the end that in one well a several inefficiencies of the elevated write-offs high and of Core whereby expense in to

in also as at to warranty business want revenue of Design net our our below We remains highlight or a that pre-XXXX percentage Grand rates.

very XX. for challenges was attributable to higher and issues unit the segment attributable position promotional and a Segment decline supply Revenues deleverage was related activity cost-conscious are motorized easing in period operational the navigate to discontinuing chassis partially on. sales product increases to warranty manufacturing from the related our that The with per from in and incentives and Winnebago in adjusted write-off year. higher operational higher The premium line year-over-year and Turning conditions, mix, inventory volume offset brand as Motorhome produced Slide lines challenges quality costs. higher by and market include to to last or price online challenges EBITDA of competitive as product the were year unit portfolio related down we costs to expense. related the RV associated challenges cost we same and consolidation back environment, we to change down product last

see are that contribution looking from accretion We new bring. business in of excited this to Motorized Design Winnebago-branded business we the performance and improved the for forward following profits should appointment Motorhome market entering the also Grand the of are business, to and share and leadership our this

fourth revenue volume discounts to elevated Also, increases. Aria and offset moving and price to product partially Barletta in from and by primarily destocking dealers inventory the the targeted the year, deleverage EBITDA and adjusted Moving offerings partially stronger net on quarter. To as the incentives to targeted as as prior was price the was XX. create conditions quarter, well in due our affected Slide volume Segment allowances related Marine quarter discounts shift and market was volume in remained segment product mix allowances, toward fourth mix to margin offset reduction customers, due decline in Revenue a down and by Chris-Craft in by a the increases. year-over-year. down such higher dealer support unit for in

targeted Winnebago Moving is a on at consecutive Slide was Industries a share. month, of sheet Winnebago Last dividend of At to per year on we XX. debt-to-EBITDA dividend X.Xx. the had quarterly of the ratio fiscal Xx, XXXX net year-end, balance approximately range to which Fiscal cash increases paid slightly above sixth of our $X.XX Industries. X.X

on $XX $XXX.X in XX, our $XXX discuss Slide our assumptions approximately During expectations on $XX of and fiscal at million of up financial consisting stock remaining share program. million in repurchase fiscal XXXX our me payments. Wrapping million repurchased outlook. $XX.X the the our had we year-end, In XXXX, returned underlying we million and dividend for and to quarter, repurchases shareholders, million let

the calendar range in RV With wholesale we a To put point, industry-wide. our the assumption median context, mind, growth XXXX. about XXXX in expect to X% this of in shipment for year midpoint starting XXX,XXX shipments in revenue represents $X.X XXXX billion is to XXX,XXX As from our fiscal outlook RVIA's $X.X units wholesale forecast important billion. calendar this

fiscal adjusted of XX% in the 'XX. midpoint our $X.XX. of range year EPS fiscal XXXX reflect share expect growth adjusted also of would We to earnings The $X range per from

to with in $XX first interest the and Lastly, and of than current in to expense 'XX on period half the fiscal fiscal year the due half prior that lower in approximately with million. Based we be will 'XX. EPS revenue $XX compared seasonality, period, normal year adjusted second anticipate of trends we of anticipate full the same the million growth year

new we to experience sales well that we expecting slow of $XXX motorhome into dealers are year particularly We XXXX, year will with in and 'XX dealer inventories to RV Grand revenues those Design's that take confidence scale. accretive profit fashion. across as amount. That And Motorhome motorhome business the Given existing the exceed and to Design have the field metrics in year-over-year, half head million competitors. of cost will meaning be our associated product Grand motorhome QX the 'XX down as be we the board are brands business our that measures during believe will profit winter as could state begins of start-up are of to first even profit into business at and that initially, we said, the reduce revenues that months, we this fiscal cross entry fiscal and up ramping the fiscal beyond. not will paired sequentially our that anticipate inventories be to challenged segment be our Design Motorhome as But as reluctance like the further in expect dilutive the and Grand production.

forward, organic results. In closing, and the Grand the RV the marine and will reminder, a being included through As in start-up associated shared improve, size Motorhome in conditions help provided million for our mid-cycle March. the is Please recovery, approximately only Design sales targets initial segment of be fiscal confident $X macroeconomic motorhome our in of going Grand Design opportunity 'XX but the and to remain the included QX costs have not we corporate RV in fiscal stage 'XX as motorhome sales and broken be in with fourth guidance business amounted industry note, we been our will our this out quarter. to segment

million $X EBITDA and the to cash in range billion XX.X% XX% free $XXX range sales $XXX with of million. margins billion, to in flow of of the to target we Specifically, $X.X

competencies for new enhancing customer invest core and technologies capital to drive maintaining shareholders. while to We in our experience the products continue creation to allocation balanced and a our through value approach

as turn turn some the closing comments. XX over Mike? please Slide I to call Now Mike for to

Bryan. Thanks,

As positioning potential. we in strong look to growth I and the long-term am company's our confident future,

underpin Let me optimism. my highlight that the factors key

premium of future presence. long-term recreation robust just outdoor portfolio Our foundation margin brands market for isn't profitability and expansion. about a It's

more excellence synergies. organizational us catalyst our growth established are structures. across synergies enterprise-wide positioned help to profitability These of than drive accelerated enhance are have that for They're and centers We operations. just

believe robust we a we're core, sets we pace markets engine that our for end by serve. powered At technology the the

product commitment economic economic ensures an flexible maintain durable cycles, we our In to resilience. are quality continuous model competitive and profitability providing stability of They regardless and operating Our cost innovation assets. highly differentiation. integrated to structure unyielding key maintain enable us ever-changing landscape, variable and

Our cash strong healthy page, balance sheet just free a on not and opportunity. are represent numbers flows they

We have growth to to returning simultaneously our dry smartly initiatives powder invest ample in shareholders. while capital valued

experience operational Finally, I of bring our as be management table, coupled They and opportunities want This emphasize the deep the record future a with to challenges. of accretive executing navigate crucial to proven team. track will M&A. strength we expertise

and Now be will please your to questions open the take Q&A. this line Operator, for Bryan I morning. happy

question first Joe come will from Our from Instructions] [Operator Raymond the James. line of Altobello

a maybe conservative? So high-level as it general to realistic give tradition and this for provide sense a around your with you guidance, view can or breaking perhaps why obviously, guidance, couple on questions we now In you giving Should philosophy of it? us here. decided

we formalized to was more one as understand thought this Street Mike. guidance the future business in more decision at able thoughtful a expectations move to contributing in our company to that the narrative is interest way. of time around future of well intentionally best broader investors provide the this and deliberation as Joe, was a certainly being The

our per both conservative neither the possibilities I guidance, comment the the but modest included we aggressive, think we're upside range about whether Bryan And reflecting also appropriately on reflected on revenue earnings share. I expectations won't on of this for I but guidance think midpoint morning's nor very call. thoughtful numbers is

maybe share the follow those that volume what would wide, probably in to fairly to and us would range and And you impacting on thing your and Is that. up just to happen but high the other for terms to assuming in certainly low EPS of factors is you if I understand end end Maybe shoes, margin? out helpful. have same The lay there of are get it maybe which That's largely in FY Or market do can ranges? revenue the scenarios was the 'XX? I Okay. based? are

of highs well your allow $XXX,XXX at then A take views. in -- Yes, the as other and scenarios and well the appropriately as that. with question as And into somewhat an form point low We leverage weighed the Joe, into all as share. EPS certainly to margin just $XXX,XXX on of is market, with including look and look the at factored lot certainly based flow-through a the upside the well like this up the on midpoint. of on balanced but is some on your similarly I'll share, current range forces come largely things then which the The Bryan. those think entry on think the the a the it the business, margin. number downside of relates market We is we assumptions at market market of Design the incorporated as we to run in different of market margin equation end. high the the on in those Motorhome at trends as should accretive be them we pricing. Inflation the to things will of we Grand lows market what all going share as and the end

want we I on, the just move point to out audience Before to here.

received a get We've can our in of going past to for we intentional the lot We call a little in the time allow lengthy. are that be feedback Q&A.

the And calls in means don't follow one-on-one today one weigh and going If tomorrow. question, chance certainly we'll XX:XX. get you to at that side of quarterly the always, at call. we're as next a with So line that up on sell draw that we'll the our

just to that wanted point upfront. out I So

and we design. one no call at is is by cut when intentional surprised it off XX:XX, the So

Our next Scott come line question from ROTH. will from of Stember the

what you retail some now. at There Could of the regarding talk you're out were speak seeing guys vibes right Hershey positive open coming house about show. as we

get the green for are you with Just across helping trying rates down? become seeing dealers come RVs, any constructive entire that seeing what on a to or the shoots lower 'XX mainly signs secondarily, rates you're enterprise having product? taking sense more And are to

Scott, little at Fed move believe this is ago the question. Mike. early our of a see with weeks rate partners start half it's second level. or us with I'll to for your I either the the channel the impact funds of retail several

period by time, comment So Fed only and solely nor to at there would that this recently. Concerning I retail retail continues a volume wholesale to move in my cannot recent your about impact question here volume activity, be point related the significant material since fiscal retail the would even the a of Sluggish retail And meaningful word end conditions September. open including in probably late change challenging. overall our not we the be be a seen to in year, house right comp in context. have year-over-year the

up the the hitting when mix, steam double give then full products. to come some double or once their maybe of then at new profits. And margins where with question view a fall in Design point you broader And climbed can a to have back the is market. more really normalized us it. -- Got Motorized obviously, Grand in we just Design to in have on expect digits Grand last margins. you They But EBITDA with low Motorized off recent digits just before

this Scott, is Bryan.

not changed. for expectations Our have Motorhome

think in EBITDA about to I more broadly in that the believe we can Grand term the range feel return bullish margin. that with them that market double-digit we Design long of longer and term

the from line of Kennison Instructions] [Operator next [Operator from Instructions] come question come Baird. Craig line the Swartz from Next will Our question from will of Michael Truist.

guidance. to Maybe start just on

-- talking your I is year in just were macros, your et cuts interest rate guidance? cetera. just the are there's press in initial changes I'm additional But current caveats assumption in or some wondering, think no embedding market conditions, any current fiscal you about 'XX your there release

necessarily sources of a the is I this number future. the process as Mike, say there's variety projection or the into that from our economic not Mike. point-wise would of cuts planning know, And standpoint. on basis consensus an in you of amount taps a

reality that that I they say the the generally U.S. probably health our planning average think look But at the Fed broader realize I meeting-by-meeting that factor we on take an economy. in will basis that it's as a consensus would all singular of element know, as of would difficult of future you the one the -- a important probably cuts. The though rates business. trajectory to correlate is retail it's to on most as the of call interest quite as even

actually our a And in this year. so here quarter quarter calendar a we maybe on likelihood which, projected combination as 'XX period, do of the fiscal based XXXX, retail-friendly more so more that call have third easing in inventory, we that the that environment of of that improve in conditions would project probably could this we mentioned, factors, for be retail in economy morning the of outdoor time recreation fiscal field the second

our economic likely in reflected in in would wholesale So the average high his probably of this shipment Bryan no specific range the with and be general most end, included number planning, comments RV of alignment that consensus, morning. the referenced that cuts but

fiscal then on is opportunity Okay. revenue But million Fair 'XX. the Grand and enough. And sizing understand just in to you I us, trying for exactly that business, for what plus the out that Design $XXX appreciate initial you've Is Is provide dealers this? on any from on? that stocking some Just clarity of will there. level that stocking based you that orders can at the that received consumers? be base based just kind

dealers. list motorized are months, Grand dealers, part dealer level who That team launching of flow at some the retail here and Lineage been Mike, through Design wholesale wholesale on retail and has Hershey Series not or the has over retail Design also inventory for yet Grand the projection whether We've dealers, we built to months year family as are continue busy and the that's out at would field. expect, like 'XX. M been the to signing some be have the of of stocking have Grand they're Yes, fiscal we Design shows and M. the you or many, a And both been who Dallas into existing Towables up retail to the orders the for both begun beginning against number into built take past will Series Lineage many dealers,

by terms The at will be we've although time stated line specificity, the year number potentially well. is can the make, models are in will the in in Grand Design from any the we for yet Design motorized Grand be other consistently of not providing fiscal of that comment of end models any with us as details And of expect multifaceted the you that to I market line. this more motorhome

combination has forecasted of still factors. the on emphasis new it's year some of candidly So business with which orders. the inventory, firm their conversations strategy in point, and a handle like a future at on inordinately based any form, stacking orders form heavier there of a team is the of dealers, this first some on this, the in In good

Craig from comes Baird. from Kennison question next Our

you Hopefully, hear can me. Okay.

we Yes, can time, this Craig.

in Don or wondering was in a and discussed maybe KPIs change you you're West that I Chris where terms or share should you've Mike, would if and what right. investors Clark focused? expect All performance any with of mandates

get but imperative that I'll a RV with brands it's Towables Craig, into in thanks level, We in strong market a certainly North in at X a Towables. the compete talk the future. I to believe won't frame, segment Industries higher question. the Winnebago start time this strategic Towables has in KPIs way. for any that least American at short-term I'll

time Grand that significant pleased are continue the over Design feel the We very performance runway business there. to with and of there's Towables

candidly, do to mandates grow to on in the and continue the Towables is to side their that business team with Clark, his the everything to of of one possible profitability Grand So share Don future. Design

expectation in potentially is a X% the X% the space a terms on Design has over timeline that brand On a company and build number expectations but size internally that this market on had reason no is least that that a why West on around that at talked to be I'm future double Towables putting some share X% X different to business. Listen, someday. our we challenge could that about the not range time. the business business in a He's that of the X.X% Bryan side, running expectations Winnebago-branded Towables roles. about candidly of share is that's today. been for term, complement see significance Grand years. long Chris at understands our We the Winnebago-branded can He can't and of profitability. is segments has profitability Motorhomes different probably towable of

they're I'm than for So not what the in past. different we've historically sure much targeted

is expected Chris build performance that in for short take of do stabilize the So couple share to But able as in to quarter-to-quarter, begin will time that. over team will of quarters his term, consistent to then probably profitable that he with business well. a to the be business Chris

that in with would fortunate We communicated to the the Motorized and now overall Grand North RV have are very and segment to XX% goal with a share market our Design, those of March have motorized last mid-cycle Newmar we in for of American contribute brands brands share that product targets. goal we X market our X Winnebago, market

from comes the question Markets. line of Capital Tristan next Thomas-Martin Our BMO from

Can maybe at Just the in outperformed industry according relative math, the broader level, to on you drove you that what a basis? outperformance my talk quarter. to a retail

the see along into introduced they've introduced. Series models are whether that signs Tristan, some of the products some at with on that XXX we've Transcend Imagine we more AIM, of early the Reflection the affordable the some starting that's marketplace, Grand to Design of progress

are will to right the and back able in month products or to take potentially here the the starting hit past that mark our direction. in and traction both it stabilize indeed be those towable share We see two potentially some

as are is here A thing Newmar have well of that of Super C. I other gas Winnebago-branded continues we product will those motorized categories Newmar's share. share all The Class on A And luxury gaining gained C A X Class Class diesel, on sort product. U.S. All of to in share recently mainstream note gain categories, Class diesel, and the

product in with a has hit EKKO-branded the Our consumers. retail been marketplace

XX-month X% in some well performance materials We that the here RV you pontoon as I'll continues with up. but trailing of Barletta are a we I to share recently space, explicitly just -- noted in offer basis so comment, the pretty significant didn't it share. take ask that on the And on business. One reaching pleased retail this, know in now aluminum last

brands a towables around the of now has or a So signs market of impacted share we the in the some growth certainly while from company. of story because macro number been categories are share B math, very market and standpoint slowed of numbers and Class positive our seeing some

Grand nature? And on that Could much transitory what of And out break of much margin was it. Got Winnebago headwinds. kind how of in just Okay. the towable you Design? Towables? How is then that was quickly

that shipped the the brand going business in relates and more of X.X the to of state of Transcend the I'd Yes, Tristan, you've is brand pieces. that that, to here necessarily out to and necessary. I X X.X overweight not the of up moving there and that it point Design also Towable deleverage, I'd overweighted mix. the that points mix discounts the now probably there's to able a are give say line that a the an substance, Grand break or a unit market the though pricing just that in market. bit achieve Winnebago was the that allowances in got say margin. pricing into in pieces -- would I'm in was quarter lot we're to points as as right little X to net quantify

expectations just well Some of some is was as on the about as talking the channel just success fill. Mike this retail

about year-over-year, in year. in So we which that warranty warranty X.X the we remember, that of we There's quarter. drove of the had pricing cited had overweighted prior favorable point some mix Transcend,

causing the operational that turn comp we're that an to And around and one under challenges. there tough of probably operational inventory a the Don's the took we're overall point inefficiencies experiencing write-offs that some of then the profit really business just call as in and leadership. it's specifically relates consolidation some that facing some from it productivity of roof, the another write-down, we challenges it, So that's brand to under that standpoint, let's we that. We Winnebago cited expect

impacted the address profitability, a and point there it So a vantage on in was our we're disappointing margins, play quarter that towable lot it. taking steps of things to from

James Hardiman from question Our from next will come Citi. line the of

which the but finishing the 'XX year. of On of I'm into, know get I curious these about you'll inventory don't fiscal guidance, sort how see turns you

talked I about about any didn't You of the if of you share assume had continued know I'm any of gains and question sort we or destock that, ASPs for if was -- losses. the there about market think year, I share. if curious assumes then a midpoint guidance, your Motorized. share that

the the say ASPs I'll I'd on expecting ASPs within ASPs, James. Yes, an modest touch on segment. apples-to-apples increases in first. several we're Motorhome points. basis

to had continue past mix the will Towables and relates in this think affordability year. it headwinds I to that as some see preferences we

you guidance? business I it it year, think ASP mix the last Marine business. some question relates those the Towables repeat modest me too to declines you'll to as the perspective James, then side ASPs. Can not of see relates probably into will some you headwinds differently, as coming that on the modest similarly, persist from of a and have, And for or

share for question assumption. turns then year and market the inventory the was the There Yes.

dealers on for in I still of the some be that Motorized improvements specifically. think looking there's Yes, turns, terms will side

segment, Towables I But marine position it pretty do the the business full or little reach left the inventory we in sizes in to We're now to a size of really the business, our on of biggest in Aria. points that of have the on still some dealer bit inventories We on think, but enabled of the work as side touch terms in business shape well like segments lots, pontoon in into the biggest broadly we levels particular. Aria included. is as lowest with relates down. price Barletta that now position we the by increasing A the our bringing good have that lineup of dealer don't market speaking, towables. the pontoon on aluminum

share to So brand. Barletta improve we're lot our continuing on the

state. in So we're the shape. Market them assumptions as that's I good no making, would that changes dramatic characterize share current from

we and assumptions continue our Design entry continue end think because there, Motorhome As that improve approach at of as most the competition. market most penetrate that market of we we notably, there's success end retail and that entry, share dealer of know from there Winnebago the come low that just Grand to lots modest range of have to that brand, looked expect in, We're the to but Barletta will we assuming reiterate, accretive. the of going there's will just Design some factored market be range, be net Grand the the cannibalization we're gains the We the certainly some taking that in on from to to the they also share the high side.

we So that say, most guidance. the, that notable I'd those making put the market are together we share as assumptions are

broadly, Got you're a us is there. there I it. Chris-Craft guess business. of one in. And more more rid it marine getting big doing, is their seems The if I but then how like telling one great Marine And could sneak was of business, write-down peers your

this in a interested Marine is be going you core guys So assets? the And business it to those would competency you point? guess, if forward, commitment of I sort if potentially at your it's what's for

those to related to questions. one, business. Marine few committed the we comments James, a are Number

We was impairment. Barletta size somewhat business quarter. We are a that both there total the that cyclical impairment the Chris-Craft make combined market both of on the that's very is as Bryan products, taken still a I the place inventory segment. for believe characterize very trough business, would that, Chris-Craft proud analytical to led intentional an almost with Chris-Craft, efforts taken businesses. the really particular us of on to in sure in and very that for and of The our impairment was The addressable us solid that dealer this rightsized probably

I of future. retail throughout has Barletta comp as the the of Bryan share months we positive gained consistently commented we that into straight cyclical in sort is brand QX the believe going of feel And Chris-Craft we a we've well had, in As in we the each market, pontoon year-over-year. the time forward here are marine other X end fiscal shape month the 'XX believe, trough. point in decline recently, mentioned call, at the And really and positioned marine good industry this as any through business in as of just

a shareholders. time. in in will just the a assets we've and profitability our other this company not We size simply I our our as way in of possession make comment an at increase stated for the accretive to non-RV public the business intentional ambition, very and on smart, of So any have that targets, mid-cycle are

will strength in multiple you the forward. should and in the the business times. including we efforts of impairment time confidence going that, right And so broadening But continue again, terms read anything not the into our at of quality of our Marine to business over do sort Chris-Craft

Our next Davidson. the question Brandon come from line D.A. from Rollé of

maybe any have might change had changing of of recent had that diversification products there? the questions And In Transcend from share received the the during you market on you that or quarter? benefits looking provider pricing those the up efforts given talk might Or your ago, Norco. be about success provider changing other the a into, you BAL units. mentioned we Could for you also in picked couple chassis to increased shipments, Transcend

Thanks, Brandon.

rigorous comment construction supplier not are our of relationships. and very can individual what that of on tell work will I We each of about with. in you their to and materials teams unit our bill suppliers just publicly decisions the business branded

our of to a have well. business we basis, suppliers need earn the brands' to channel partners our as daily as on earn our Just business consistently

but specific -- able Transcend all that, Transcend instances That's keep price to Transcend the all I to into opening point our on pricing of standpoint So ranges, vital One in are a type product. any from those, ever, because targeted options not XPlor be particular than particularly the in more get brands. like a on I to those use and teams, on particularly terms that, price the our tell of comment certain table will choices open morning. you the of hit line, construction the supplier I'll this probably bill will one on

question of Wightman from from comes Fred Wolfe Our Research. next line the

maybe us retail? the about about expecting next just subcategories would if to XX RV-only made in XX start comment, if over marine? you of think a you wondering or a sectors improvement see better each the that's I'm when it retail Mike, comment could includes different if And And help gradual to months.

to hinted probably intended standpoint, XX project to than comment months retail The Thanks, from planning Fred. that be they that that should now, happens, better timing a we've simply was from are today. when conditions XX The of we quarter, some are and for very of calendar to us marine and XXXX, it's projecting how conditions fiscal second RV beginning calendar next difficult favorability in varies quarter, be retail accurate on third spring that subsegment that. subsegment, by

into we are even businesses here our X, several first 'XX, as that got weeks X so negative. of some and businesses got today, And we've sit standpoint year-over-year, fiscal comp positive fiscal quarter that a we've are from retail

moving moving of and conditions They already slightly both terms And market are already are so different we our speak. share. paces they at as in

the time manage So dealers feel just need inventory. more to some that we

bit it tell will room go, the little I'm our the we is minds, at of of of end in months. still aging it here fiscal has they'll as you, the dealer's at the inventory, sure But 'XX. spring 'XX, meaningfully sit I shape early to and in was the fiscal better and than a winter Although use end

wholesale the they're past calendar and to on this take possibly a second could once several general that in care that environment to we the healthier the meetings said, make get that anticipate has in quarter. going some do, of As exist we'll retail decisions Bryan possibility little. Fed for and what And destock more a country, we election

hinging that's to segment. by where upswing, won't So potential I segment get by but really would brand brand into or details a say as we're specific

Our from Markets. Capital Noah from next question comes KeyBanc Zatzkin

in update provide sentiment RV your have marine, on of could kind Most just any thoughts asked just hoping answered, health, an you and and of the and been but well? base kind dealer both of state as of kind

on that Noah, big news this No is front. Bryan.

channel. We our continue dealer to monitor

as on, cash a very clearly generation, P&L speaking, been much broadly people think focus are is that a versus floor to the specific for keeping their on interest financing. notably that, the higher and quarter now right they most environment public, plan manage which It's the relates some environment eye an that notable say the just flow the there's it prior rate right dealers has I on I'd no dealers cash focus. now network. flow from impact dealer change through as But

will of come from Next Bret from the question Jefferies. line Jordan

from in notable environment call out strategies Patrick aggressive despite there This any been the anyone for have competitive Are rational to guys recent Or looking seeing on RV. is Are challenging take things within more to Buckley you pricing relatively the share? backdrop? Bret. trends

with, suggest be probably points to wouldn't our irrational call open I per an more continues would high-volume, I marketplace of that and engaging to retail and focus lower-cost se, those compete competitors on an have OEMs innately points. to to industry, some share the and the advantage are just of price The it affordability won't dealers consumers aggressive. larger that aggressively of have the appetite share price one one winner as the but in call momentum has names, I larger the out appears specific in well. been a gain industry but in

in of obviously, So segments. discounts in financial his competition a Marine, aggressive reflection, across -- alluded our being that's comments, respective are and to board, key and elevated Bryan the Towables, allowances as in Motorized, as well but spots

comment but there. So -- that's my

remarks. any over the reached I'll call. back to turn Posadas closing the of end have it for Ray We

That boat We this and at to the of Fort month. for show of day. joining your upcoming quarter end is you the call. enjoy the forward our look of some Lauderdale rest later earnings Thank fourth you seeing

program. today's This participation your conference. in for does you Thank conclude the

may now Everyone, have day. great a disconnect. You

you. Thank