Winnebago CEO Michael Happe told CNBC on Friday that he expects recreational vehicle sales inspired by a coronavirus pandemic to last next year.
The comments came after the Forest City, Iowa-based company reported strong quarterly results that exceeded Wall Street expectations. Investors cheered the quarter on Friday, with shares of Winnebago closing more than 5%.
Winnebago reported adjusted earnings per share of $ 1.69, beating estimates of $ 1.01, according to FactSet. It also represented an increase of 131.5% over the same quarter last year. Revenue for the quarter ended Nov. 28 reached $ 793.1 million, up 34.8% from a year earlier and beating analysts’ forecasts of $ 753 million.
“We were really happy, obviously, with the way consumers went outdoors in 2020 as they tried to control the impact of the pandemic on their lives, and we think you’ll see a similar behavioral trend in 2021,” he said. say Happe in “Bell Closing.”
“We believe there is a huge build-up of demand from consumers who may have been interested in the 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 sailing in 2021,’ ‘the executive added.
Winnebago Industries motorhomes are on display at Winnebago Motorhomes in Rockford, Illinois.
Daniel Acker | Bloomberg | Getty Images
Because the coronavirus pandemic necessitated social distancing, many outdoor recreational activities, such as boating, biking, and RV travel, increased in popularity. Happe is not alone in his optimism that the new interest of Americans outdoors will be maintained until next year.
Brunswick CEO David Foulkes told CNBC earlier this month: “We have an incredible boost in the [boating] industry now. We have been attracted to a new demographic. … I think that gives us a big boost, not just next year, but in the years to come. “
Winnebago, which sells motorhomes and boats, has noticed a similar shift in buyers, according to Happe. “Our consumers are getting younger. They’re getting more diverse in terms of background and profile, and they use products in a lot of different ways,” he said. “The trend of working from anywhere is pretty strong right now and a lot of our new consumers see these products as a way to work from the road or a nice campsite somewhere in the United States.”
Winnebago shares have risen 18% so far this year and more than 260% since its March 19 virus era low.