Thor Industries is aiming to almost double its worldwide sales to $14 billion by year-end 2025, the company announced at an investor event this week in Bad Waldsee, Germany.
The sales increase is one phase of Thor’s new growth goals, which includes attaining sustainable gross margins of 16% and generating more than $3 billion in cumulative net cash from operations.
While Thor didn’t outline the specifics, the OEM stated it planned to achieve its goal through “organic growth and acquisitions,” according to a report BMO Capital Markets provided Powersports Finance.
“Management was sounding quite upbeat about the current pace of business, calling it a ‘very good’ late summer season,” Analyst Gerrick Johnson said in the report. “The Hershey, Pa., and Fontana, Calif., retail shows were called out as being strong, and the Elkhart Open House [RV show] was ‘incredible.’ Inventory in the channel is improving, and the company still expects retail/wholesale equilibrium by the end of the calendar year.”
Despite the positive outlook, the OEM’s worldwide sales declined 5.6%, dropping to $7.9 billion for the year ended July 31.
Some potential for sales growth rests in Thor bringing Erwin Hymer Group (EHG) vehicles to the North American market, the report said. Thor completed its acquisition of EHG, one of the largest RV manufacturers in Europe, in February.
“Hymer’s product is attractive, well designed, with a smaller footprint, and its innovation is exactly where we think the North American market is headed,” Johnson said. “Timing is uncertain, as these vehicles would need to be homologated for the U.S. market and likely need to be produced at a retrofitted U.S. factory.”
Join us for Powersports Finance Summit 2019, October 23-24, at the Hilton San Diego Bayfront. At the Summit, lenders and dealers will have the opportunity to learn new information that will help their business grow, discuss the latest industry data and trends, and network to form new relationships with fellow attendees and vendors. Register now at www.powersportsfinance.net.