Fleetwood Reports RV Dealers Now Cautious
Fleetwood Enterprises Inc.’s RV sales revenue grew by 11% in the three-month period that ended Sunday (Jan. 26), but the company also reports that its positive momentum has slowed.
Fleetwood’s total sales revenue, including manufactured home building and retailing, declined 6% in the three months ended Jan. 26, to $493 million.
However, its RV-related sales revenue grew by 11% in the November-through-January period to $309 million, compared with $278 million for the same period a year-earlier.
Fleetwood’s motorhome operations continued to be the Riverside, Calif.-based company’s best performer. Its motorhome sales increased 15% in the three months ended Jan. 26 to $211 million.
The company’s travel-trailer/fifth-wheel sales increased 4% in the November-through-January period to $71 million and its folding camper sales improved by 1% to $27 million.
For the nine months ended Jan. 26, Fleetwood’s total RV sales improved by 28% to $1.1 billion. Its motorhome sales were up 37% to $670 million and its travel-trailer/fifth-wheel sales were up 16% to $310 million. Fleetwood’s folding camper sales also increased 14% in the nine-month period to $96 million.
“While our RV sales continue to improve on a year-over-year basis, the momentum has slowed,” said Ed Caudill, president and CEO. “We believe this is due to dealer caution in light of current events and, in particular, the international situations in Iraq and Venezuela.
“This has resulted in the postponement of some deliveries,” Caudill continued. “We remain confident that the wide range of new, attractive products in our current offering puts us in a good position, once tensions ease, to add to the revenue growth that we have been experiencing, particularly in Class A motorhomes.
“The introduction of a new lineup of travel trailers this quarter has increased our ultimate potential for sales growth but has also caused us to incur some inefficiencies and higher short-term costs to support a ramp-up of production,” Caudill added. “Meanwhile, we are working to strike a balance in production throughout the RV Group so that we have an appropriate level of inventory to support the anticipated retail season.”