Even with Covid restrictions lifted, RV maker Thor Industries is seeing sustained demand for outdoor living – and a growing order book, CEO Bob Martin told CNBC on Tuesday.
Thor’s backlog stood at $ 14.32 billion at the end of April, the company said in its third quarter financial report released on Tuesday. This is up 32.5% from $ 10.81 billion at the end of January and 550% from a year ago.
Martin told Jim Cramer on “Mad Money” that the company is “pretty much sold out for next year” with most of the new RV inventory already promised to customers on hold.
“We have backlogs full of retail orders, so those will arrive at the dealership’s lot and then leave, and so we are still not able to build up inventory on our dealer’s lots,” he said. declared.
The demand for outdoor living has increased during the pandemic, with consumers confined to their homes looking for new ways to spend time safely. And young customers started to buy, Martin said.
“At the moment we see this as a long term trend, and if we take people to an entry-level price and an entry-level product, they will grow throughout their lives,” he said. he declared. “People trade every 3 to 5 years, but right now we’re seeing it a little faster, and we’re seeing it on a long track.”
Thor manufactures towable and motorized recreational vehicles under several brands including Airstream, Heartland RV and Jayco. The company’s supply in the North American market was around 75,000 at the end of the last quarter, down nearly 30% from nearly 106,000 units in 2020 and 43% below 132 500 units before Covid-19 in 2019.
The results are similar in Europe, where Thor’s order book is growing exponentially. The company said an order backlog of $ 3.34 billion, nearly five times higher than pre-pandemic levels.
Thor broke the upper and lower estimates for his third quarter. The company’s total sales more than doubled to $ 3.46 billion, from $ 1.68 billion a year ago.
Thor’s shares fell 1.26% to $ 115.60 on Tuesday. The title is up 24% since the start of the year.