Winnebago is an unhappy camper

RV sales surged during the pandemic as #VanLife trended and remote employees grabbed a wi-fi hot spot and hit the road. But with people clocking in IRL and air travel roaring back, Winnebago’s most recent quarterly earnings (reported yesterday) look clunky. The RV-maker’s income fell $59 million from the same time last year to $29 million. 

Motorhomes were especially unpopular. Winnebago’s motorhome sales dropped 20% annually. Similarly, Airstream-maker Thor’s motorhome sales in the most recent quarter fell 19% compared to the year-ago period, and its overall revenue dipped 4%. Both companies’ shares are down more than 20% this year. 

But there is a bright spot on the dash: towable RVs that are hitched to the back of cars. Sales of travel trailers ticked up 1% at Winnebago. They still fell at Thor, but by a much smaller margin (5%) than motorhomes. 

These companies could be heading for a U-turn back in the right direction: industry-wide, experts predict RV shipments to pick up this year, mostly jacked up by travel trailers. If that plays out, it could be a sign of consumer confidence: motorhome sales are seen as a leading economic indicator, since, y’know, people are more likely to buy a $150K camper van when they’re feeling financially secure and optimistic.