09:00 AM EST, 03/05/2025 (MT Newswires) -- Thor Industries ( THO ) swung to an unexpected fiscal second-quarter loss amid a challenging market environment, while the recreational vehicle maker lowered its full-year earnings outlook.

The company now anticipates earnings to come in between $3.30 and $4 per share for fiscal 2025, compared with its previous guidance range of $4 to $5. Sales are pegged at $9 billion to $9.5 billion, reflecting a lower top end from the prior forecast of $9.8 billion. The current consensus on FactSet is for GAAP EPS of $4.34 and sales of $9.44 billion for the ongoing fiscal year.

Thor's sales levels through the first half of fiscal 2025 have been "very much" in line with its initial expectations, but pressure on margins has been higher than anticipated in part due to the challenging conditions in its North American motorized and European markets, Chief Operating Officer Todd Woelfer said in a statement. "We still expect that the retail market will begin trending more positively as we progress through the remainder of our fiscal 2025," according to Woelfer.

The RV maker is taking a cautious approach for the rest of the current calendar year due to the recent decline in consumer confidence and near-term market uncertainties amid tariffs, Chief Executive Bob Martin said. "We remain confident in our ability to navigate this uncertain market environment while continuing to position Thor for future success," according to Martin.

Shares of the company dropped 5.5% in the most recent premarket activity.

For the three-month period ended January, Thor posted a net loss of $0.01 a share versus earnings of $0.13 the year before. The Street was looking for GAAP earnings of $0.07 per share. Sales fell 8.6% year over year to $2.02 billion but topped the average analyst estimate of $1.98 billion.

North American towable RV sales advanced 13% to $828.3 million, buoyed by a 28% jump in unit shipments that was partially offset by a 14% decline in net price per unit, according to the company. Revenue from motorized RVs in North America fell 22% to $446.3 million amid a roughly 21% drop in unit shipments. European RV sales decreased to $612.5 million from $782.3 million, weighed down by a 28% fall in unit shipments.

"While the RV market has experienced an extended downturn, our focus has remained on prudently managing through the downturn by working with our vendor and dealer partners to improve what we build for retail customers," Woelfer said. "As our fiscal year continues to unfold, we anticipate meaningful structural and brand rationalization announcements that will result in an improved profit profile for our operating segments."

Gross profit margin fell by 20 basis points year over year to 12.1%, impacted by the company's actions to "deepen" partnerships with its key dealers, according to Woelfer. Selling, general and administrative expenses moved down to $206.2 million from $220.1 million in the prior-year quarter.