1 Worrying Metric for This RV Maker

Thor Industries (NYSE: THO) has a huge backlog, which would normally be a great sign for the business. Recreational vehicle (RV) production is expensive, and it's helpful to have contracted orders on hand that represent consumer interest -- even if those contracts aren't binding.

But above a certain level, backlog reflects manufacturing challenges and inventory risk. That's a big reason Thor's management highlighted its reduction as a major priority heading into the summer months. Let's take a closer look at that goal, which was laid out in Thor's recent earnings announcement.

The main operating metrics were all strong. Thor announced a 35% sales increase, marking just a modest slowdown compared to the prior quarter's 42% spike. Its European division shrank, but that decline was more than offset by surging demand in the U.S. market for towable and motorized RVs.

Source Fool.com