Sales was driven by strong towable segment growth.
Revenues for the Motorized segment were $241.7 million, down 2.0% from the previous year. Revenues for the Towable segment were $234.7 million for the quarter, up $209.3 million over the prior year, driven by the addition of $196.9 million in revenue from the Grand Design acquisition.
Moving a little further down the income statement, gross profit was $70.8 million, an increase of 134.0% compared to $30.3 million for the Fiscal 2016 period as gross profit margins expanded 380 basis points driven by a favorable product mix, including the addition of Grand Design products within the overall sales mix.
The company said, "Solid macroeconomic fundamentals, combined with a surge of younger demographics embracing the outdoor lifestyle, as well as expanding use cases for RVs, suggest continued runway for increasing RV shipments and retail."
"The strong growth in the Towable segment validates our full-line strategy and demonstrates our momentum, and we are pleased to note healthy and increasing backlog in both the Motorized and Towable segments this quarter. As a result, we have approved investments in expanded capacity, including the addition of approximately 40% more production space within our Grand Design business."
The company remains optimistic about the ongoing growth of the RV industry as it heads into the final quarter of the fiscal year.
Following the open here, shares of WGO just hit a new high for the day just moments ago at $32.25 and are now up 10%.