Core Insights - THOR Industries reported a decrease in net sales and profitability for the second quarter of fiscal 2025, reflecting ongoing challenges in the RV market [5][6][8] - The company is focusing on maintaining strong dealer relationships and aligning production with current retail demand to navigate the challenging economic environment [6][18] - THOR has revised its full-year financial guidance, anticipating net sales between $9.0 billion and $9.5 billion, with adjusted earnings per share projected between $3.30 and $4.00 [8][25] Financial Performance - Consolidated net sales for the second quarter of fiscal 2025 were $2.02 billion, down 8.6% from $2.21 billion in the same quarter of fiscal 2024 [7][8] - Gross profit margin decreased to 12.1% from 12.3% year-over-year, while net income attributable to THOR was a loss of $0.6 million compared to a profit of $7.2 million in the prior year [8][14] - EBITDA for the second quarter was $76.3 million, down from $103.2 million in the same quarter of the previous year [9][34] Segment Performance - North American Towable RVs segment saw a 13.3% increase in net sales, driven by a 27.6% rise in unit shipments, while gross profit margin improved by 370 basis points [10][11] - North American Motorized RVs segment experienced a 21.8% decline in net sales, with gross profit margin dropping to 7.8% from 10.6% [15] - European RVs segment reported a 21.7% decrease in net sales, with gross profit margin falling to 13.2% from 15.3% [16] Strategic Focus - The company is prioritizing cash flow management, having generated $30.8 million from operations in the second quarter, and is focused on reducing working capital [20][21] - THOR is committed to enhancing its product offerings and aligning production with market demand to improve profitability [18][19] - Management anticipates a stronger cash generation in the second half of fiscal 2025, supporting strategic growth initiatives [22][24] Market Outlook - Despite a recent upward revision in the RVIA's forecast for wholesale unit shipments, THOR remains cautious due to declining consumer confidence and tariff impacts [23] - The company is positioning itself for future success by maintaining financial discipline and focusing on strategic growth initiatives [23]

Company Overview - THOR Industries, Inc. is the sole owner of operating companies that collectively represent the world's largest manufacturer of recreational vehicles [2] Upcoming Events - THOR management will participate in two investor conferences: Citi's Global Consumer & Retail Conference on March 10, 2025, and the 37th Annual Roth Conference on March 17, 2025 [4] Management Attendance - At the Citi conference, Todd Woelfer, Senior Vice President and COO, will be in attendance [4] - At the Roth conference, Bob Martin, President and CEO, and Todd Woelfer will represent the company [4]

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Camping World (CWH) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth potential beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Historical EPS growth for Camping World stands at 34.4%, but projected EPS growth for this year is significantly higher at 348.5%, surpassing the industry average of 24.4% [5] Group 3: Asset Utilization - Camping World has an asset utilization ratio (sales-to-total-assets ratio) of 1.25, indicating that the company generates $1.25 in sales for every dollar in assets, compared to the industry average of 0.5 [6] Group 4: Sales Growth - The company's sales are expected to grow by 6.9% this year, which is above the industry average growth of 5.3% [7] Group 5: Earnings Estimate Revisions - Current-year earnings estimates for Camping World have been revised upward, with the Zacks Consensus Estimate increasing by 3% over the past month [9] Group 6: Investment Positioning - With a Zacks Rank of 2 and a Growth Score of A, Camping World is well-positioned for outperformance, making it an attractive option for growth investors [11]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.2 billion for Q4 2024, an increase of 9% compared to the previous year, driven by an 8% increase in new unit sales and an 11% increase in used unit sales [20][21] - Adjusted EBITDA loss improved to $2.5 million from a loss of $8.9 million year-over-year, primarily due to accelerated used inventory procurement and new unit market share gains [23] - The company ended Q4 with approximately $288 million in cash, including $80 million in the floor plan offset account, and $339 million in used inventory net of flooring [24] Business Line Data and Key Metrics Changes - New vehicle gross margin was 15.2%, primarily due to lower promotional support compared to the prior year, while used vehicle gross margin improved to 18.7% as fresh used inventory was brought back into the system [21] - Good Sam achieved revenue growth of 1% with nearly $95 million in EBITDA, indicating solid performance in product services and other core dealer service revenues [22] Market Data and Key Metrics Changes - The company ended 2024 with a record combined new and used market share of 11.2%, with expectations to reach 12% in early 2025, selling over 130,000 units, up from 121,500 in 2024 [10][11] - The company anticipates retail demand for the RV industry to remain relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments slightly higher to support restocking [98][102] Company Strategy and Development Direction - The company aims for 10% to 15% unit growth in used RVs and low single-digit growth in new RVs, with a focus on improving total gross profit and achieving a 600 to 700 basis point improvement in SG&A as a percentage of gross profit [10][23] - The management is focused on judiciously reestablishing the used business while maintaining dominance in the RV market, with plans to close an additional four to six dealership acquisitions by the end of spring [18][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the broader RV industry, citing good foot traffic and lead volume, and noted that consumer interest in RVs is returning [42][46] - The company expects explosive EBITDA growth in Q1 2025 compared to the prior year, driven by gross margin improvements and significant SG&A reductions [13][117] Other Important Information - The company raised $330 million in growth capital in October and amended its RV floor plan facility, adding $300 million of runway [9] - Management indicated that the ten-year treasury yield's stabilization could lead to retail finance rate relief for customers, allowing them to afford more units [13][30] Q&A Session Summary Question: What is driving the new ASPs? - Management indicated that ASPs typically start lower at the beginning of the year and rise as the selling season progresses, with a correlation to the ten-year treasury yield affecting retail rates [28][30] Question: How much of the SG&A improvement is from profit growth versus cost savings? - Management noted that some improvement comes from increased gross profit, but significant adjustments to the cost structure were also made to achieve the targeted SG&A improvements [32][34] Question: What feedback has been received from the show season? - Management reported positive feedback from show season, with good foot traffic and lead volume, indicating a healthy demand for RVs [42][46] Question: What is the outlook for retail demand in 2025? - Management anticipates retail demand to be relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments needing to be slightly higher to support restocking [98][102] Question: What are the expectations for new and used gross margins in 2025? - Management expects new gross margins to be in the range of 13.5% to 14% and used gross margins to exceed 19% for the year [85][86] Question: How many dealerships does the company plan to add in 2025? - Management expects to add six to seven dealerships in 2025, focusing on capital allocation and growth opportunities [90][91]