A Strong Quarter on an Easy Comp
Given how far sales fell for Winnebago, it stands to reason that the company should be able to produce impressive growth rates if or when it rebounds. Revenue in the company's fiscal first quarter snapped back by 53% over the same period a year ago to $123 million, as the company's unit shipments increased by 40%. Within that, Winnebago saw ever better growth in the highest-priced RVs (Class A) at 59%, with Class C unit sales increasing 44%. Class B sales dropped over 98% (to one unit) as the company left this business. As investors may have already suspected, average selling prices were also up on that higher contribution of Class A units.
Profitability improved, but once again from an easier low base. Gross profit bounced off the bottom and the company produced a gross margin of 9%. That 9% is clearly much better than the year-ago level (of almost nothing), but it's still well short of the mid-teens level that was commonplace a decade ago. Likewise, the company rebounded from an operating loss to an operating profit, with an operating margin (3.5% adjusted) of almost one-third of the old averages. (Take a deeper look at a company's profitability with the help of profit-margin ratios. For more insight, read The Bottom Line On Margins.)
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