Consumer Sector Split: Winnebago Returns to Profitability as Conagra Posts Loss
Chicago, Friday, 19 December 2025.
Fiscal results from December 19, 2025, reveal a striking shift in consumer behavior: Winnebago Industries surged back to profitability with a 12.3% revenue jump, signaling a rebound in discretionary spending. This sharply contrasts with Conagra Brands, which reported a significant $1.39 per share loss driven by nearly $1 billion in non-cash impairment charges.
Winnebago Beats Expectations on RV Demand
Winnebago Industries (NYSE: WGO) delivered a robust performance for its first quarter of fiscal 2026, ending November 29, 2025, defying broader economic hesitation. The company reported net revenues of $702.7 million on December 19, 2025, an increase of 12.3% from the $625.6 million recorded in the same period last year [1]. This top-line growth translated into a net income of $5.5 million, or $0.19 per diluted share, marking a significant turnaround from the net loss of $5.2 million, or $0.18 per share, observed in the first quarter of fiscal 2025 [1]. Adjusted earnings per share came in at $0.38, substantially outperforming analyst estimates of $0.13 [2].
Segment Growth and Raised Guidance
The growth was propelled by double-digit gains in the company’s core segments. Revenues for Towable RVs climbed 15.5% to $293.4 million, while the Motorhome RV segment saw a 13.5% increase to $308.5 million [1]. This surge in sales volume also improved profitability metrics; gross profit margin expanded to 12.7%, and adjusted EBITDA more than doubled, rising 109.7% to $30.2 million [1]. Buoyed by these results, Winnebago raised its full-year fiscal 2026 guidance, now anticipating adjusted earnings per share between $2.10 and $2.80 and revenue between $2.8 billion and $3.0 billion [2]. Following the release, shares reacted positively, jumping approximately 7.4% in pre-market trading [2].
Conagra Weighs Heavy Impairment Charges
Conversely, Conagra Brands (NYSE: CAG) faced a more turbulent quarter. In its report released on December 18, 2025, for the second quarter of fiscal 2026 ending November 23, 2025, the company disclosed a 6.8% decline in net sales to $3.0 billion [3]. The bottom line was severely impacted by non-cash charges; Conagra reported a net loss of $663.6 million, or $1.39 per diluted share, a stark reversal from the net income of $284.5 million recorded in the prior year period [3]. The primary driver of this loss was a massive accumulation of impairment charges totaling $968 million related to goodwill and brand assets [3].
Divergent Fiscal Outlooks
Despite the accounting headwinds and a 3.0% decline in organic net sales, Conagra emphasized its adjusted operational stability, reporting an adjusted operating margin of 11.3% and adjusted EPS of $0.45 [3]. CEO Sean Connolly acknowledged the “challenging consumer environment” but noted underlying momentum, leading the company to reaffirm its fiscal 2026 guidance with expected adjusted EPS between $1.70 and $1.85 [3]. The juxtaposition of these reports highlights a split market where Winnebago is capitalizing on a resurgence in discretionary big-ticket items, improving its net leverage ratio to 2.7x [1], while Conagra navigates volume pressures and valuation adjustments in the consumer staples sector.