Editor’s Note: Robert W. Baird & Co. issued a client newsletter to investors following the March towable sales report from Statistical Surveys Inc. The following offers a summary of the results.
U.S. towable retail remains strong in March. Dealer towable sales grew 15% in March, according to Statistical Surveys, following similar gains in February (keep in mind data is frequently revised upward). The retail growth is encouraging, and trends are consistent with our recent dealer survey, as a mild winter and early start to spring supported demand.
• Towable demand up 15%. U.S. towable sales improved 15% in March. Travel trailer registrations increased 17%, and fifth-wheel sales grew 7%.
• Inventory. Dealers continue to stock towable product ahead of the selling season, increasing channel inventory. We believe seasonal restocking is essentially complete, and look to spring demand to determine orders into summer.
• Retail U.S. SAAR. We calculate a seasonally adjusted rate of retail registrations. The SAAR of U.S. towable demand (including fifth-wheels and travel trailers) rose to 175K units in March, from 172K units in February. Just over 160K units were sold in the U.S. in 2011.
This summary of a Baird research report is not intended as investment advice. To participate in Baird surveys and receive research reports, contact Craig R. Kennison, CFA, at email@example.com.