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Thor Industries Q2 net sales up 55.2%

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Christian Fernsby ▼ | March 9, 2020
Thor Industries today announced results for the second quarter of fiscal 2020, which ended January 31, 2020.
Thor Industries
Thor Industries   Second quarter net sales were $2.0 billion, up $712.6 million, or 55.2%
Second quarter net sales were $2.0 billion, up $712.6 million, or 55.2%, from the second quarter of fiscal 2019.

Topics: Thor Industries

This increase includes the addition of $637.1 million in net sales from the European RV segment and an increase of $102.3 million in net sales in the North American Towable RV segment, partially offset by a decrease of $27.8 million in net sales in the North American Motorized RV segment.

Consolidated gross profit margin was 12.8% for the second quarter of fiscal 2020, compared to 11.0% in the corresponding period a year ago.

This reflects the positive impact of ongoing, management led actions to reduce material and labor costs as a percentage of sales in both North American RV segments and the addition of 12.5% gross profit margin from the European RV segment.

Net income attributable to Thor and diluted earnings per share for the second quarter of fiscal 2020 were $28.7 million and $0.52, respectively, compared to a net loss and diluted loss per share of $(5.4) million and $(0.10), respectively, in the prior year period.

Results for the second quarter of fiscal 2020 included the impact of two non cash impairment charges totaling $10.1 million, or $0.15 per diluted share, as well as incremental interest expense and amortization of intangibles related to the acquisition of EHG totaling $39.3 million, or $0.57 per diluted share.

Fiscal 2019 second quarter results were adversely impacted by costs related to the acquisition of EHG which, in aggregate, totaled $42.1 million, or $0.75 per diluted share.

The Company's effective income tax rate for the second quarter of fiscal 2020 was 22.5%.

The Company expects a worldwide effective tax rate for the entire 2020 fiscal year ranging between 20% and 23%, before consideration of any unknown discrete tax items.

Independent dealer inventory levels of Thor products in North America decreased by 16.5% to approximately 115,200 units as of January 31, 2020, from approximately 137,900 units as of January 31, 2019.

Management believes that the North American independent dealer inventory rationalization of the past 18 months is now largely complete, and orders for the remainder of calendar 2020 are expected to be in line with consumer demand.

Management also believes that independent dealer inventory levels of EHG products in Europe have rationalized and are also now generally appropriate for seasonal consumer demand moving into the peak selling season.


 

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