A downturn in its average selling price was reported by Winnebago Industries Inc. (WGO.N) as shares of the company plunged down to as much as 7 percent to an all time low in the past 16 months since had more cheaper motorhomes were being sold.
The small but closely monitored company as it provided a perspective on expensive, discretionary products, Winnebago stated that that in the quarter, their average selling price has a 8.4 percent downturn.
In addition to this, Chief Financial Officer Sarah Nielsen stated that they are receiving more active orders for cheaper motorhomes that are meant for families with children lower on the age bracket.
With this, Winnebago is putting more financial effort in expanding its cheaper priced motorhomes and anticipates their gross margins to take a hit because of it.
Upon the closing of Wednesday, a marked plummet of 20 percent is seen in the company’s stocks and an 11 percent decline in the S&P 600 Consumer Discretionary index.
At the New York Stock Exchange, the motorhome maker’s shares were down 2.1 percent at $21.46 in late afternoon trading.