By Adriano Marchese

Winnebago Industries reported a lower profit and revenue as retail demand remained soft, prompting the company to slash guidance for the year.

Shares were up 0.73% to $31.56 in premarket trading.

"Our fiscal third-quarter results reflect both the diverse dynamics of our business segments and the challenges posed by an uncertain economic environment," Chief Executive Michael Happe said Tuesday.

The RV and boat maker now expects fiscal 2025 earnings of 50 cents to $1 a share and adjusted earnings of $1.20 to $1.70 a share. Winnebago previously expected adjusted earnings between $2.75 and $3.75 a share, and analysts polled by FactSet expect $1.73 a share.

Revenue is seen at $2.7 billion to $2.8 billion, down from a previous guidance of $2.8 billion to $3 billion. Analysts were expecting $2.76 million in fiscal 2025 revenue.

Earlier this month, Winnebago warned it would adjust its headcount, shift production plans and post weaker profits for the third quarter after economic uncertainty dented consumer sentiment. The company said the pressure was most acutely felt in its motorhomes business, which saw a 2.6% decline in revenue in the latest quarter at $291.2 million from $299 million.

Volume growth in the towable RV and marine segments was partially offset by volume reductions in motorhomes, as dealers continue their efforts to right-size field inventories in this segment, the company said.

"We are focused on protecting long-term profitability and sustaining strong customer relationships while aligning production closely with healthy field inventory turn targets," Happe said.

For the three months ended May 31, Winnebago posted a lower net income of $17.6 million, or 62 cents a share, compared with $29 million, or 96 cents a share, in the same quarter a year ago.

Adjusted earnings, which strips out exceptional costs and one-off items, were 81 cents a share. Analysts were expecting 79 cents a share.

Net revenue fell 1.4% to $775.1 million, largely due to lower average selling prices for its units. Analysts expected $774.8 million.

"With a new leadership team in place, Winnebago motorhomes is launching a comprehensive margin recapture plan centered on refreshing the product line, boosting operational efficiency and rebuilding sustained profitability beginning in fiscal 2026," Happe said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 25, 2025 08:18 ET (12:18 GMT)

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