Winnebago Industries, Inc. (NYSE:WGO) Q2 2024 Earnings Call Transcript

And any rate cuts at this point we believe will have both a real effect from an affordability standpoint, but they’ll also potentially have an effect on consumer buying confidence in terms of where things are headed going forward. We were pleased that the Fed yesterday signaled that in the back half of the year we could still see as many as three Fed funds rate cuts. And while, David, I can’t give you an exact number as to the quantity of cuts or how large they are, a quarter percentage or 50 basis points, any movement will help. And we’ll take three for sure. If that happens, we think that will offer a little bit of a trigger to consumers becoming more active again.

David Whiston: Thanks. That’s helpful. And then on marine, is there any major difference in confidence between the, perhaps ultra wealthy Chris-Craft customer and the pontoon customer?

Michael Happe: I would say that thin air that Chris-Craft operates in is a — first and foremost, they’re a cash buyer 95% of the time, but they’re also pretty smart in these tricky economic times as well. And so the retail that we’ve seen on Chris-Craft has been less robust than what we’ve seen on Barletta, probably for a variety of reasons. Barletta has got momentum because of a number of factors, dealer confidence, we’re entering open markets, we’re introducing great products. Chris-Craft is a more mature business with a very targeted, highly affluent customer. So there’s not a lot of crossover between those customers and they act a little bit differently during similar periods of the cycle. But we anticipate that as the marine cycle comes back, not only will Barletta grow as we indicated with our long range target of 13% market share, but we also anticipate that that Chris-Craft business will grow going forward as well.

David Whiston: Great. Thank you.

Operator: Thank you. This concludes our question-and-answer session. At this time, I would like to turn it back to Ray Posadas for closing remarks.

Ray Posadas: That is the end of our second quarter earnings call. Thank you everyone for joining us. We look forward to keeping you updated on our progress in the future. Thank you.

Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.