When we think of Thor smashing things, our mind goes straight to the Avenger and his trusty hammer. However, this time the discussion is about the RV automaker, which has smashed its sales targets after it posted a net profit of $348.1 million for the three-month period ended April 30, compared with $183.3 million a year earlier. Earnings per share for the third quarter were $6.32 per diluted share, an increase of 92.1% compared to $3.29 per diluted share in the same period of the prior fiscal year.
Analysts previously estimated sales of $4.19 billion, but net sales rose 35% to $4.66 billion, driven by higher prices and higher sales volume. The company does have a consolidated RV backlog of $13.88 billion. However, this has been cut down from $17.7 billion in January. As with almost every global business, Thor Industries have also been beset by supply chain issues. Chief amongst them is the ability to provide enough chassis to automakers has dented their ability to meet customer demands.
Why it matters
The pandemic driven desire to spend more time outdoors than in is continuing into the sales of RVs. In the US, this past winter saw the construction of more than 50 new campgrounds and RV parks, offering more than 15,000 new RV sites. Whilst the RV market is estimated to grow from $55.90 billion in 2021 to $87.89 billion in 2028.