Thor Industries posted the highest net sales and profits in the company’s history during the third fiscal quarter.
Demand for Thor products remains “robust,” with quarterly net sales increasing 105.7% compared with 2020’s third quarter, finishing with $3.46 billion. The year prior, that number was $1.68 billion. In North America’s RV sector alone, net sales grossed $2.5 billion.
“These results show that growth continued unabated after the initial temporary shutdown of our dealers and Thor Industries’ production lines in late March through the end of April of last year due to the pandemic,” Thor President and CEO Bob Martin said. “We have increased our production levels, often with modest capital expenditures, and intend to continue to increase production levels to address the ongoing, robust consumer and dealer demand for Thor Industries RV products, while also managing through continuing supply chain challenges.”
In the company’s North American towables segment, net sales reached $1.73 billion for 2021’s third quarter, compared with $773.4 million recorded the year prior.
“Demand for our products continues to grow at both the retail and wholesale levels,” Martin said. “While our pace of production and shipments has accelerated, demand is so high that independent dealer inventories of Thor Industries products continue to decline, while dealer sales are increasing. This increasing consumer demand has driven our order backlog to more than $14 billion at the end of the quarter and includes units that will be needed to restock depleted dealer inventories.”
Thor’s consolidated RV backlog as of April 30 was $14.32 billion, an increase of nearly 550% from April 30, 2020.
“Since a significant number of units in our backlog have already been retail sold, we currently believe the restocking cycle will extend well into calendar 2022,” said Martin.
Thompson Research Group Analyst Kathryn Thompson said in a note that dealer inventories are perhaps Thor’s most telling metric. Inventories fell 4% from the previous quarter, Thompson said, indicating “retail demand continues to outstrip supply.”