MW Winnebago says job cuts are coming. Why Trump's tariffs can be blamed.

By Tomi Kilgore

RV seller says demand has dropped, particularly for motorhomes, a lot more than expected since April 2, when Trump announced his tariff plan

Shares of Winnebago Industries Inc. were knocked down Thursday after the recreational-vehicle maker warned investors of a big profit miss, as an expected boost in retail sales following the presidential election hasn't materialized.

In fact, demand has dropped off significantly since President Donald Trump's "liberation day" tariff announcement.

Speaking at the Baird Global Consumer, Technology and Services Conference, Chief Executive Mike Happe said that since April 2, "things have certainly gotten a little tougher and tighter with consumer demand and with our dealers' appetite to take product in significant volume levels."

As a result, the company $(WGO)$ is now expected to report net revenue for the fiscal third quarter, which ran through May, of about $775 million. That's down 1.4% from the same period a year ago, and below the average analyst estimate compiled by FactSet of $803.5 million.

Adjusted earnings per share, which exclude nonrecurring items, is projected to be 75 cents to 85 cents, well below the current FactSet consensus of $1.31.

"What began as an encouraging selling season in March was hampered by growing macroeconomic uncertainty, resulting in worsening consumer sentiment and an increasingly cautious dealer network in the final two months of our fiscal third quarter," Happe said.

He said there was weakness across the product line, but especially in the motorhomes business.

The stock slumped 6.6% in afternoon trading, but pared earlier intraday losses of as much as 12.7%.

The company has looked to address this weakness by "dramatically" reducing the number of products it ships, as it manages inventory held at dealers and how many vehicles it produces.

Happe also said the company was aggressively modifying headcount. Although he didn't go into detail on how many jobs would be cut, Happe said layoffs were coming for hourly workers, while cuts on the salaried side would continue to be looked at.

In general, he said the RV industry was stoked about the outcome of the November election, amid hopes that a Trump administration would boost retail momentum. However, he just hasn't seen retail results at the pace that was hoped for.

Winnebago's stock has tumbled 31.7% in 2025, while shares of fellow RV maker Thor Industries Inc. $(THO)$ have shed 10.6% and the S&P 500 index SPX has gained 1.3%.

-Tomi Kilgore

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June 05, 2025 15:38 ET (19:38 GMT)

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