Thor Industries, Inc. (NYSE:THO) came out with first-quarter numbers Monday morning.
The company, based in Elkhart, Indiana, announced net sales for the first quarter increased 22.9% to $2.16 billion, including $493.0 million in net sales from Erwin Hymer Group ("EHG"), which was acquired on February 1, 2019.
Gross margin for the first quarter improved 250 basis points over the prior year, to 14.3%, reflecting favorable product mix, as well as lower material, labor and warranty cost percentages.
To date, the Company has paid approximately $500 million of principal on its acquisition-related debt. - Dealer inventory rationalization is nearing completion.
North American independent dealer inventory of Thor products is now at its lowest point since the first quarter of fiscal 2017.
Consolidated gross profit margin was 14.3% for the quarter, compared to 11.8% in the prior-year period, primarily reflecting favorable overall product mix and reductions in material, labor and warranty cost percentages in the North American RV segment, tempered by the gross profit margin from the European RV segment, which was lower than the overall North American gross margin for the current quarter.
Net income attributable to Thor were $51.1 million, compared to $14 million in the prior-year quarter, and diluted earnings per share for the first quarter of fiscal 2020 were $0.92, compared $0.26, in the prior period.
CEO Bob Martin said, "In our fiscal first quarter, we achieved a pronounced improvement in our operating results, reflecting the benefits of the flexible and highly variable cost model we have developed, as we increased gross profit margins in our North American RV segments despite modest decreases in net sales."
Thor shares fell $2.42, or 3.6%, to $65.35 at Monday’s open.
