By Dean Seal

Shares of Winnebago Industries fell after the company said it expects to adjust its headcount, shift production plans and post weaker-than-expected results for the spring quarter due to eroding demand for motorhomes.

The stock was down 8.4% at $31.99 in premarket trading. Shares had already fallen 27% year-to-date when the market closed Wednesday.

The RV and boat maker said ahead of the opening bell that a strong selling season in March was followed by growing economic uncertainty that worsened consumer sentiment and made its deal network more cautious in the months that followed.

The pressure was most acutely felt in the company's motorhomes business, which is now expected to produce significantly lower revenue in the last two quarters of the fiscal year than previously anticipated, Chief Executive Michael Happe said.

Winnebago has initiated a series of strategic actions for the rest of the fiscal year to cut costs and improve profitability, including aggressively modifying its production schedule and adjusting headcount.

"We have recently taken significant steps to lower field inventory, improve working capital, align our production schedule to market demand, and accelerate stronger product value for our consumers in the future," Happe said.

For the fiscal third quarter ended May 31, the company expects about $775 million in revenue and earnings of 55 cents to 65 cents a share, or 75 cents to 85 cents a share when adjusted for one-time items.

Analysts polled by FactSet had been expecting $810 million in revenue and adjusted earnings of $1.37 a share.

The forecast comes a day after Thor Industries, the maker of Airstream and Jayco RVs, and Rev Group, another maker of recreational vehicles, both reported better-than-expected results for its latest completed quarter and saw their shares rise.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 05, 2025 07:52 ET (11:52 GMT)

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