Thor Earnings: Lack of Dealer Inventory Restocking Forces Another Guidance Cut

Thor’s fiscal 2024 third-quarter results forced the company to again cut its full-year guidance, but we don’t see a reason to change our fair value estimate. At the start of the fiscal year, management expected dealers' reluctance to meaningfully increase inventory would end during the second half of fiscal 2024. However, the lack of interest-rate cuts means dealers remain leery of holding excess inventory, and Thor now expects this weakness to continue into fiscal 2025. We agree with management, however, that macroeconomic conditions will eventually improve and consumer interest in eventually owning another recreational vehicle remains strong.