Thor Industries Inc. shares declined 2.7% to $76.35 Wednesday after the company said it expects demand to be muted by macroeconomic factors in the short-term but underlying demand for recreational vehicles will remain strong in the longer-term.
The RV manufacturer said it expects demand to be muted for the remainder of fiscal 2022 and into the beginning of fiscal 2023, according to a presentation included in a securities filing. The company also said it expects inflation to temper across fiscal 2023 and motorized chassis supply challenges to continue through the first half of fiscal 2023.
Thor issued five-year performance projections, forecasting net sales of $20 billion and per-share earnings of $27 by the end of fiscal 2027. The company also said it projects a sustainable gross margin of 17% and cumulative net cash from operations from fiscal 2023 to fiscal 2027 of at least $6 billion.
Thor said it plans to return more than $875 million of capital over the next three fiscal years.
Last week, the company’s board approved $450 million of additional share repurchase authorization. There is currently $150 million remaining under the current authorization after about $100 million of share buybacks year-to-date in fiscal 2022, the presentation said.
Thor also said it intends to grow its dividends annually.
The company said in its presentation that it currently has no planned major acquisitions in the next three years.