Thor Industries CEO Bob Martin told CNBC on Tuesday that he expects to see strong demand for recreational vehicles even after the outbreak of the coronavirus epidemic, partially exploded by growing demand for younger travelers.
“As we get into the next generation of customers, the millennial generation is bigger than the boomers, so we see this as a long – term opportunity for the whole industry,” Martin said. Closing Bell. “
Martin’s comments came after Indiana-based Elkhart, Thor, released second-quarter results earlier in the day that added to Wall Street’s expectations on the high and low lines.
The maker Airstream reported net sales of $ 2.73 billion, jumping 36% year-over-year, compared to analysts ’forecasts of $ 2.53 billion. Each portion of beat projections earned $ 2.38 with 83 cents.
The Covid pandemic hurt the travel industry in general, but RV trips were popular when people were picking up planes and choosing ways to leave home while still maintaining social distance. Other outdoor activities such as boating and cycling were very popular.
Martin, who has been chief executive of Thor since 2013, said the real health crisis showed the attractiveness of RV travel to younger generations, offering an attractive opportunity in recent years. ahead.
“It’s something we’ve been doing through our marketing efforts, social media, just trying to bring an RV … to a younger buyer,” said Martin, adding. special mention of the company’s Class B motorhomes, better known as turntable vans.
“When people walk in, they see that they have their own bathroom, their own bedroom, their own sink, and they can drive, to be safe. It’s just part of the way They go with camping groups, so we feel very sticky, “said Martin.
Thor raised production last year to meet the rise in RV consumer interest. As of January 31, Thor’s confirmed RV reserve showed at $ 10.81 billion, up nearly 280% compared to the same point in 2020 and a sign of continued demand.
“We are also looking at higher reserves, so as we are talking to retailers and looking at sales statistics, they are continuing to go higher this year. , “Martin told CNBC.
Expectations are rising for a sharp reversal in travel as Covid vaccinations continue. Helane Becker, an air industry analyst and managing director at Cowen, told CNBC earlier Tuesday “we believe that as more vaccines get into people’s arms, there will be frustration and people will to get out and travel. “
Martin said Thor was seeing positive signs of the Covid pandemic that led him to believe that there will be no widespread retreat from RV travel once people feel more comfortable flying their flights. -rithist.
“The lifestyle has been growing into this. We think it’s just brought more people to it,” Martin said, adding that many customers have since have recently been customers who want to upgrade their model. “I think psychologically, a lot of people are still going to be lazy to travel and vacation in different ways once they’ve tried the RV lifestyle.”
Shares of Thor closed at 1.77% Tuesday to $ 132.36 each. The stock is up almost 160% in the last 12 months.