Winnebago CEO Michael Happe told CNBC on Friday that he expects the coronavirus pandemic-inspired boom in recreational vehicle sales to last until next year.
The comments came after the Forest City, Iowa-based company reported strong quarterly results that exceeded Wall Street expectations. Investors cheered on the quarter on Friday, with Winnebago shares closing more than 5% higher.
Winnebago reported adjusted earnings per share of $ 1.69, which is better than the estimates of $ 1.01, according to FactSet. It also represented a 131.5% increase from the same quarter a year ago. Revenues for the quarter ended November 28 were $ 793.1 million, up 34.8% year-over-year and analyst best forecasts of $ 753 million.
“We were obviously very happy with the way consumers were moving out in droves in 2020 as they attempted to cope with the impact of the pandemic on their lives, and we think you’ll see a similar behavioral trend in 2021,” said Happe on “Closing clock.”
“We think there is great pent-up demand from consumers who may have been interested in the space and the category earlier this year and may not have pulled the trigger, but are still very excited to find a way to get into RVing and boating. 2021, ‘the director added.
Winnebago Industries motorhomes on display 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 saw growth in popularity. Happe isn’t alone in his optimism that Americans’ renewed interest in the outdoors will continue into next year.
Brunswick CEO David Foulkes told CNBC earlier this month, “We have incredible momentum in the [boating] industry now. We have attracted a new demographic. … I think that gives us great momentum, not only next year but also in the years to come. “
Winnebago, which sells RVs and boats, has seen a similar shift in buyers, according to Happe. “Our consumers are getting younger. They are becoming more diverse in background and profile, and they use the products in many different ways,” he said. “The trend of working anywhere is quite strong right now, and many of our new consumers are seeing these products as a way to work from the road or a nice campground somewhere here in America.”
Shares of Winnebago are up 18% so far this year and more than 260% since their low in the virus era of March 19.