Dometic reported lower net sales in the first quarter of 2024 compared with the first quarter of 2023.
President and CEO Juan Vargues said the company was initiating numerous plans in North America.
“Several sales and operational initiatives were launched in the Land Vehicles Americas segment during the quarter,” Vargues said, “and I am convinced this will accelerate our transformation journey and drive efficiencies and gradual improvements.”
Land Vehicles Americas, the new segment including North American OE and aftermarket sales, reported sales falling 19% in the first quarter from the first quarter of 2023. Dometic cited lower RV OEM net sales as the primary reason for the decline. Services and aftermarket net sales also declined.
Vargues said, “We will also continue prioritizing margins over volumes on the competitive U.S. market where RV industry production remains at a low level.”
Vargues said long-term industry trends are strong but short-term results are uncertain.
“Our planning assumptions from 2023 remain largely unchanged; we anticipate the recovery in demand in the Service & Aftermarket sales channel to continue in 2024,” he said. “In the distribution sales channel, we expect a continued gradual recovery as retail inventories decline. In the OEM sales channel, we foresee a continued weak demand short-term but with an improvement towards the end of the year.”
Vargues said the company’s first-quarter results showed the company’s transition to a better-balanced and more resilient company.
He said, “We will continue to relentlessly drive our strategic agenda to deliver on our targets, prioritize margins before volumes, and at the same time remain agile to quickly respond to short-term market trends.”
