Winnebago closed out its fiscal yr with a stable fourth quarter earnings beat. Adjusted per-share revenue of $1.59 simply topped Wall Avenue expectations because of the recreational-vehicle maker’s skill to effectively handle prices, manufacturing and inventories within the quarter.

However that masked an enormous drawback for the corporate – weaker discretionary spending. It is a problem throughout a number of sectors, from blue denims to pizza supply, as excessive inflation saps customers.

The corporate on Wednesday additionally posted income of $771 million, a virtually 35% decline from a yr in the past. It fell wanting Wall Avenue’s anticipated $784 million, as gross sales in its motorhome RV division considerably missed consensus views ($318 million vs. $355 million anticipated, in keeping with StreetAccount).

Winnebago blamed “decrease unit gross sales associated to present market situations and seller efforts to cut back inventories, and better reductions and allowances.” Unit deliveries of motorhome RVs plunged 52% year-over yr.

Worth will increase weren’t practically sufficient to beat the weak demand.

CEO Michael Happe mentioned “the patron market continues to be challenged, and our fourth quarter outcomes mirror a cussed retail setting.”

Whereas the corporate did not give monetary steerage, Happe mentioned he expects these tendencies to proceed into the primary half of the brand new fiscal yr. By the second half of the fiscal yr, although, Happe is optimistic that inventories will normalize and client demand will stabilize.

Winnebago’s inventory, which was down 3% Wednesday, had fallen about 13% during the last three months, far underperforming the broader market. Rival Thor Industries had additionally fallen about 17% in that very same timespan – a mirrored image of the difficult demand situations throughout the trade.