- LCI Industries (LCII -5.5%) reported Q1 net sales growth of 30.5% Y/Y to $650.49M due to strong sales growth in engineered products for leisure and mobile transportation.
- Segment sales: Travel trailers & fifth wheel +18% Y/Y to $404.95M, Motorhomes +30% Y/Y to $52.91M, Adjacent industries +33% Y/Y to $142.31M and Aftermarket +28% Y/Y to $50.31M.
- Q1 overall margins: Gross declined by 325 bps to 21.6% and operating declined by 267 bps to 9.2% due to raw materials inflation, which was partially caused by the new tariffs, offsets the margin improvement.
- Company's content per travel trailer and fifth-wheel RV increased 8% Y/Y to $3,317, reflecting largest increase in last 5 years and Motorhomes increased 13% Y/Y to $2,328.
- Company expects the acquisitions of Taylor Made Group and Hehr to add ~$205M of net sales to the OEM adjacent industries and aftermarket segment for FY18.
- Previously: LCI misses by $0.08, beats on revenue (May 4)
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