Champion Homes (SKY) is facing increased competition and financial challenges, leading to concerns over its stock performance. The company missed revenue and earnings expectations for its fiscal fourth quarter in May, reporting a sales surprise of -1% and an EPS surprise of -13%.
As of early October, 3.59 million shares have been shorted, representing over 8% of its outstanding shares. Since the fourth-quarter report, Champion Homes’ stock has declined by more than 30%, significantly underperforming the broader market’s 10% rebound.
Additionally, earnings estimate revisions for fiscal years 2026 and 2027 have fallen by over 10% in the last 60 days, further indicating potential downside risk for the company amidst ongoing inflationary pressures and high-interest rates.
