Thor Industries, Inc. (THO) has reported a 45.03 percent jump in profit for the quarter ended Jan. 31, 2017. The company has earned $64.78 million, or $1.23 a share in the quarter, compared with $44.67 million, or $0.85 a share for the same period last year.
Revenue during the quarter surged 62.91 percent to $1,588.52 million from $975.07 million in the previous year period. Gross margin for the quarter contracted 194 basis points over the previous year period to 13.33 percent. Total expenses were 93.74 percent of quarterly revenues, up from 93.18 percent for the same period last year. That has resulted in a contraction of 56 basis points in operating margin to 6.26 percent.
Operating income for the quarter was $99.45 million, compared with $66.49 million in the previous year period.
"The second quarter marked another period of growth for Thor, as we experienced a positive start to the spring retail show season around the country," said Bob Martin, Thor president and chief executive officer. "Growing demand from new consumers broadening our market has continued, with younger families increasingly buying more affordably priced travel trailers and smaller motorhomes. These positive trends give us confidence that Thor and the industry will outpace volumes achieved in 2016, which was the best year of wholesale RV shipments since the 1970s. We remain convinced that these trends will continue to drive industry growth in future periods, as we provide new consumers with positive experiences that prompt them to become lifelong RVers."
Working capital declines
Thor Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $434.88 million as at Jan. 31, 2017, down 7.65 percent or $36.03 million from $470.90 million on Jan. 31, 2016. Current ratio was at 1.64 as on Jan. 31, 2017, down from 2.19 on Jan. 31, 2016.
Days sales outstanding went down to 23 days for the quarter compared with 31 days for the same period last year.
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