Patrick Buckley

Patrick Buckley asked for key takeaways from the recent RV Open House, including insights into recent retail demand and year-over-year sales trends, and how the sentiment from the event influenced the fiscal 2026 outlook. He also followed up on tariff questions, specifically asking about any expected incremental chassis impact from recent tariffs on medium-duty trucks.

Answer

President and CEO Michael Happe described the September Open House as a good event with strong dealer engagement and orders, particularly for Winnebago Towables (record-setting) and Grand Design brands. He noted strong reviews for the new Winnebago motorhome Sunflyer. Happe stated that recent retail trends in the first 1.5 months of fiscal 2026 are similar to July/August, with no significant change in momentum, and the outlook assumes a flat market. He also confirmed no specific or incremental chassis impact is expected from recent tariffs on medium-duty trucks, as teams continue to mitigate tariff costs.

Patrick Buckley, on behalf of Bret Jordan, asked for a comparison of the marine and RV cycles, the current state of marine dealer health, and their appetite for restocking inventory.

Answer

President and CEO Michael Happe stated that the marine industry appears to be slightly behind the RV industry in its destocking cycle. He noted that marine dealer financial health is comparable to that of RV dealers, with no extraordinary pressures. Field inventory for Winnebago's marine brands is down double-digits year-over-year, and he expects several more quarters of destocking behavior from marine dealers.

Patrick Buckley, on for Bret Jordan, asked about recent trends in the competitive RV environment, specifically whether Winnebago is seeing more aggressive pricing strategies from competitors looking to take share.

Answer

President and CEO Michael Happe described the retail marketplace as aggressive but not irrational. He noted that competitors focused on high-volume, lower-cost products have an advantage in the current affordability-focused environment and confirmed that discounts and allowances remain elevated across all segments as a result.

Patrick Buckley, on for Bret Jordan, asked about the growth trajectory and potential market size for Holley in Mexico. He also inquired how the strategy for Mexico differs from the U.S. and whether it is the primary focus for international expansion.

Answer

President and CEO Matthew Stevenson described Mexico as a natural and primary focus for expansion due to its proximity and strong enthusiast base. He estimated the long-term potential of the Mexican market to be about 5% of the U.S. market. He explained that building the business there will take time, as it involves establishing a full go-to-market strategy, including distributors and retail presence. While Mexico is the current priority, the company continues to evaluate other global markets.

Patrick Buckley of Jefferies inquired about pricing trends and same-SKU inflation for the second half of the year, given the tariff situation. He also asked for a comparison of point-of-sale (POS) data versus sell-in for the U.S. Aftermarket and whether there were signs of inventory builds ahead of price increases.

Answer

Eric Sills, Chair, CEO & President, explained that second-half pricing is designed to cover tariffs at cost and will be nominal when spread across the entire product offering. He noted that sell-through is slightly less than sell-in, which reflects customers expanding their footprint rather than pre-buying. For Temperature Control, POS was slightly up against a tough prior-year comparison, with year-to-date trends tracking similarly to the Vehicle Control segment.

Patrick Buckley of Jefferies inquired about pricing trends and same-SKU inflation for the second half of 2025, particularly in relation to tariffs. He also asked for a comparison of point-of-sale (POS) versus sell-in within the U.S. Aftermarket and whether there were signs of inventory builds ahead of price increases.

Answer

Eric Sills, Chair, CEO & President, clarified that second-half pricing is designed to cover tariffs at cost, resulting in a nominal impact across the entire product offering. He explained that for the Vehicle Control segment, sell-in is slightly outpacing sell-through as customers expand their footprint, not as a reaction to price changes. For Temperature Control, he noted that POS was slightly up against a tough prior-year comparison, with year-to-date trends tracking in the low single digits.

Patrick Buckley of Jefferies inquired about pricing trends for the second half of the year, specifically seeking a range for same-SKU inflation due to tariffs. He also asked for a comparison of point-of-sale (POS) data versus sell-in for the U.S. Aftermarket and whether there were signs of inventory builds ahead of price increases.

Answer

Eric Sills, Chair, CEO & President, explained that second-half pricing is designed to cover tariffs and will be nominal when spread across the full product line, declining to provide specific figures. He noted that sell-through is slightly below sell-in, which reflects customers expanding their footprint rather than pre-buying. For Temperature Control, POS was slightly up against a tough prior-year comparison, with year-to-date trends showing low single-digit growth, similar to the Vehicle Control segment.

Patrick Buckley of Jefferies asked for a breakdown of the 5% July sales growth between acquisitions and price, inquired about product categories with domestic resourcing opportunities, and asked for the wholesale shipment assumption behind the 2027 revenue target.

Answer

EVP & CFO Lillian Etzkorn attributed a significant portion of the July growth, approximately 3-4 percentage points, to acquisitions. President and CEO Jason Lippert explained that while they always evaluate moving production to the U.S., cost incentives often lead to resourcing in other countries outside of China. He stated the $5 billion revenue target for 2027 assumes a return to a normalized RV wholesale environment of 400,000 to 415,000 units annually.

Patrick Buckley from Jefferies questioned the drivers behind the 17% increase in January RV OEM sales, asking if it was due to underlying retail demand or OEM pre-buying ahead of tariffs. He also inquired about the marine market, including dealer sentiment and confidence in a second-half rebound.

Answer

CEO Jason Lippert stated he did not believe there was any pre-buying related to tariffs, attributing the sales increase to retail demand, citing strong results from dealers like Blue Compass. Regarding the marine market, he described it as being about 1.5 years behind the RV cycle, with dealers still working through inventory. He expressed confidence that marine retail will pick up in the second half of the year, which will then impact wholesale demand.

Patrick Buckley, on for Bret Jordan at Jefferies, asked about the growth outlook for the parts and service business in the second half, its primary drivers, and the competitive landscape. He also inquired about the health of smaller dealers in the market.

Answer

Chairman & CEO Marcus Lemonis explained that the service business is focused on maximizing yield from its fixed capacity. While reconditioning a larger used inventory has been a priority, he expects the external customer-pay business to increase in the second half. On the competitive front, he confirmed that many smaller dealers are struggling and have approached Camping World for buyouts. He reiterated that their acquisition strategy remains opportunistic and focused on high returns, but the primary goal is improving productivity at existing stores.

Patrick Buckley of Jefferies Financial Group Inc. asked for the outlook on the parts and service business now that the furniture business sale has been lapped. He also inquired about the health of competing dealers and any signs of distress in the market.

Answer

Chairman & CEO Marcus Lemonis explained that the service business is focused on maximizing yield, balancing external customer-pay work with the internal reconditioning of their large used inventory. On dealer health, he confirmed that a number of struggling competitors have approached them for buyouts. He cited the rapid and significant profitability turnaround of the five acquired Lazydays locations as a prime example of their successful acquisition and integration model.

Patrick Buckley, on for Bret Jordan, asked if interest rate cuts are necessary for an industry recovery, what the optimal macro backdrop would be, and whether M&A multiples are rising as the cycle improves.

Answer

CEO Marcus Lemonis stated that stabilization in unit pricing and the 10-year treasury yield is key, though a significant rate drop of 75-100 basis points would be needed to push industry sales over 400,000 units. On M&A, Lemonis said multiples have remained largely the same. He reiterated that the company's primary focus is deleveraging by improving earnings from existing stores and maintaining a strong balance sheet, not aggressive M&A spending.

Patrick Buckley of Jefferies, on behalf of Bret Jordan, asked if the strong first-half franchise used vehicle GPU is sustainable or if moderation is expected in the second half. He also inquired about the company's outlook for the new vehicle SAAR for the remainder of the year.

Answer

President Jeff Dyke indicated that the franchise used vehicle GPU should remain near current levels, though he acknowledged potential headwinds from tariff uncertainty and manufacturer inventory actions. Regarding the new vehicle SAAR, both CFO Heath Byrd and President Jeff Dyke stated that while it's volatile, a range of 15 to 16 million feels appropriate for the current environment, barring significant changes like interest rate cuts.

Patrick Buckley, on behalf of Jefferies, asked about the future trajectory for used vehicle GPUs following a strong Q1 and the outlook for Battery Electric Vehicles (BEVs) regarding inventory versus demand.

Answer

President Jeff Dyke indicated that franchise used vehicle margins should hold steady if tariff impacts are minimal, while EchoPark's margins are growing due to an increased mix of vehicles purchased directly from consumers. Regarding BEVs, Dyke and CEO David Smith noted that inventory levels are now better aligned with consumer demand, which CFO Heath Byrd confirmed is reducing the GPU headwind from EVs seen in 2024.

Patrick Buckley, on for Bret Jordan, asked about the market conditions and timeline for resuming EchoPark's expansion and inquired about F&I trends for 2025, including potential headwinds and upsides.

Answer

EchoPark COO Tim Keen projected normalized market conditions for expansion in 12-18 months, targeting early 2026. President Jeff Dyke added that the trigger would be improved vehicle affordability, specifically an average payment below $400. Regarding F&I, Jeff Dyke advised modeling around current levels, acknowledging potential upside from rate cuts but remaining conservative.

Patrick Buckley from Jefferies inquired about recent auto dealer sentiment in light of potential tariffs and asked for the drivers behind the stronger performance of the international segment of the Tools Group compared to the U.S.

Answer

CEO Nicholas Pinchuk explained that auto dealer business is not significantly impacted by new car availability, as their profits are driven by repair, which can increase when new car sales are slow. He noted the outperformance of the international Tools Group was due to those markets being insulated from the U.S.-centric political and economic uncertainty that has created the 'cash-rich, confidence-poor' phenomenon domestically.