“We have buyers that will only shop new,” CEO Douglas Yearly said on the company’s earnings call. “We are positioned really well and have a huge advantage over the used market.”
For the full fiscal year, Toll Brothers expects deliveries between 8,100 and 8,400 units with an average price between $835,000 and $860,000. That’s down from the previous expectation of between 8,000 and 8,500 units. The resulting revenues — between $6.76 billion and $7.22 billion — would be the highest annual revenues in the company’s history, the statement said.
The value of contracts in the West, South and Mid-Atlantic regions, and the City Living division, were all up at least double digits, the company said. The North region was essentially flat. Net contract value was $2.03 billion, up 12 percent.
The City Living division, which primarily focuses on the New York City metro area, sold 29 units for a total of $50.6 million during the quarter ($1.75 million a unit). That’s down from $98.7 million across 78 units a year earlier. However, the value of contracts signed increased to $80.7 million from $40.4 million.