Winnebago Industries, a manufacturer of outdoor lifestyle products, reported its financial performance for the first quarter of fiscal 2025. The company announced total revenues of $625.6 million for the quarter, reflecting an 18% decline compared to the same period last year. The downturn was attributed to reduced unit volumes.

Gross profit for the quarter stood at $76.8 million, representing a 33.7% year-over-year decrease from $115.8 million. The gross margin narrowed to 12.3%, down by 290 basis points.

According to a press release, Michael Happe, president and CEO of Winnebago Industries, acknowledged the difficult operating environment. “As expected, the RV and marine operating environment remained challenging in the first quarter, marked by subdued consumer demand and a cautious dealer network reluctant to make significant commitments on new orders ahead of the historically slow winter season,” Happe stated. 

Happe highlighted the importance of targeted investments in new products and technologies. According to the CEO, these efforts, combined with a healthy balance sheet and prudent capital spending, position Winnebago to take advantage of an anticipated market recovery later in fiscal 2025. 

He noted the company’s robust liquidity as a key factor supporting its resilience in the face of ongoing industry challenges.

The company’s first-quarter financials also showed an operating loss of $0.9 million, a stark contrast to the $39.1 million operating income recorded in the same quarter last year. 

Net loss for the quarter was reported at $5.2 million, or $0.18 per diluted share, compared to a net income of $25.8 million and $0.78 per diluted share in the prior-year period. The adjusted net loss per diluted share was $0.03, a significant shift from the $0.95 adjusted earnings per diluted share reported last year.

Happe attributed the losses to several factors, including lower unit volumes in the RV segments and start-up costs associated with the Grand Design motorized RV rollout. He also pointed to ongoing product development and a shift toward lower price-point models to align with consumer demand. 

Despite the financial setbacks, Happe expressed optimism about the company’s product transformation efforts aimed at delivering what customers truly value. “While the second quarter of fiscal 2025 is likely to remain challenged, we remain confident in our strong positioning and long-term growth potential,” Happe added.