Winnebago CEO Michael Happe told CNBC on Friday that he expects the increase in sales of recreational vehicles inspired by the coronavirus pandemic to continue next year.
The comments came after the Forest City, Iowa-based company reported strong quarterly results that exceeded Wall Street expectations. Investors congratulated the quarter on Friday, Winnebago shares closed above 5%.
Winnebago reported adjusted earnings per share of $ 1.69, exceeding estimates of $ 1.01, according to FactSet. It also represented an increase of 131.5% compared to the same quarter a year ago. Revenues for the quarter ended November 28 amounted to $ 793.1 million, up 34.8% year-on-year and exceeding analysts’ forecasts of $ 753 million.
“We were really pleased with the way consumers came outdoors in 2020 as they tried to manage the impact of the pandemic on their lives, and we believe you will see a similar behavioral trend in 2021,” Happe said. on – Closing bell.
“We believe there is a high demand from consumers who were probably interested in space and category earlier this year and may not have pulled the trigger, but are still very excited to explore a way to get into RVing and boating in 2021 “, added the executive.
Winnebago Industries exhibits caravans at Winnebago Motor Homes in Rockford, Illinois.
Daniel Acker | Bloomberg | Getty Images
As the coronavirus pandemic necessitated social distancing, many outdoor recreational activities, such as boating, biking, and RV travel, have seen an increase in popularity. Happe is not alone in his optimism that the new interest of Americans in the open air will continue until next year.
David Foulkes, CEO of Brunswick, told CNBC earlier this month: “We have an incredible momentum in [boating] industry now. We were attracted to a new demographic. … I think that gives us a big boost, not only next year, but also in the years to come. “
Winnebago, which sells RVs and boats, has noticed a similar shift in buyers, according to Happe. “Our consumers are getting younger and younger. They are getting more and more diverse in terms of background and profile and using the products in many different ways,” he said. “The trend of working from anywhere is quite strong right now and many of our new consumers see these products as a way to work on the road or in a beautiful campsite somewhere in America.”
Winnebago shares have risen 18% so far this year and more than 260% since their March 19 viral decline.