10:30 AM EST, 03/06/2024 (MT Newswires) -- Thor Industries ( THO ) cut full-year sales and earnings targets on Wednesday as results for the maker of recreational vehicles dropped in the fiscal second quarter amid lower retail demand and cautious dealers who are facing their own pressures.

Sales for fiscal 2024 are seen between $10 billion and $10.5 billion, down from a prior target of $10.5 billion to $11 billion. The earnings-per-share guidance was reduced to $5 to $5.50 from the earlier expectation for $6.25 to $7.25. Analysts are looking for $10.61 billion in sales and $6.24 in normalized EPS.

"We are cautious heading into the prime retail selling season as we believe North American dealers will maintain tight control over inventory levels until retail demand firms," said Chief Executive Bob Martin. "The macro environment remains under pressure from elevated interest rates that impact the cash flow of our independent dealers as well as consumers' desire to make large discretionary purchases."

Shares plunged 12% in Wednesday trading, hitting the lowest on an intraday basis since Dec. 13.

In the fiscal second quarter, sales dropped to $2.21 billion from $2.35 billion a year earlier, missing the consensus for $2.27 billion. Earnings also missed Wall Street's predictions, falling to $0.13 from $0.50 a year ago. Analysts were expecting $0.66 on a GAAP basis and $0.67 normalized.

Towable RVs in North America saw sales drop 12% to $731 million as prices per unit slid 22% amid a shift to more moderately-priced products. Motorized RVs in the region sank 23% to $570.4 million as unit shipments sank 18% and sales discounts were higher than the prior year.

Thor offered incentives to independent dealers in a bid to help offload prior-year products while working to keep production levels at a pace that mirrors retail sales, Chief Operating Officer Todd Woelfer said in the statement. Restocking was "modest" at about 4,000 units, which Woelfer said was below historical levels for the fiscal second quarter.

Sales of European RVs increased 21% to $782.3 million as prices per unit benefited from changes in foreign currency and product mix. Dealer inventories in Europe were restocked "to appropriate levels" at the end of the quarter, Woelfer said.

Price: 110.19, Change: -16.40, Percent Change: -12.96