CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Holdings Reports Mixed Q1 Results: New Vehicle Sales Surge, But Profitability Declines
Sentiment:
Quarterly Report
1 May 2024 4:10 PM
Camping World Holdings saw a significant increase in new vehicle unit sales in Q1 2024, outpacing industry trends, but experienced a net loss due to lower margins and increased expenses.
Worse than expected
The company reported a net loss of $50.8 million, a significant downturn from the previous year's net income of $4.9 million.
Adjusted EBITDA decreased substantially by 86.5% to $8.2 million.
Gross profit and gross margin decreased, impacting overall profitability.
Summary
- Camping World Holdings reported its Q1 2024 financial results, showing a revenue of $1.4 billion, which is a decrease of 8.3% compared to the same period last year.
- New vehicle revenue increased by 1.4% to $656.1 million, with unit sales up by 21.3% to 16,882 units.
- Used vehicle revenue decreased by 24.1% to $337.7 million, and unit sales declined by 14.0% to 10,694 units.
- The average selling price of new vehicles decreased by 16.4%, while used vehicle prices fell by 11.7%.
- Same store new vehicle unit sales increased by 15.5%, while same store used vehicle unit sales decreased by 17.3%.
- Gross profit decreased by 8.8% to $402.4 million, with a total gross margin of 29.5%, a decrease of 16 basis points.
- The company reported a net loss of $50.8 million, a significant change from a net income of $4.9 million in Q1 2023.
- Adjusted EBITDA was $8.2 million, a decrease of 86.5% compared to the same period last year.
- The number of store locations increased by 10.3% year-over-year to 215, with a net 13 store locations opened during the first quarter.
Sentiment
Score: 4
Explanation: The document presents a mixed picture with strong new vehicle sales but significant declines in profitability and used vehicle sales. The overall tone is cautious, reflecting the challenges the company faces despite some positive developments.
Positives
- New vehicle unit sales significantly increased, outpacing broader RV industry trends.
- The company achieved record new unit market share for January and February.
- Same store new vehicle unit sales showed a strong increase of 15.5%.
- The number of store locations increased by 10.3% year-over-year, indicating expansion.
- The company is rebalancing its used inventory and intends to reinvest in stocking levels.
Negatives
- Total revenue decreased by 8.3% compared to the same period last year.
- Used vehicle revenue and unit sales both experienced significant declines.
- The average selling price of both new and used vehicles decreased.
- Gross profit and gross margin decreased, impacting overall profitability.
- The company reported a net loss of $50.8 million, a significant downturn from the previous year's net income.
- Adjusted EBITDA decreased substantially by 86.5%.
Risks
- The company faces risks related to general economic conditions, including inflation and interest rates.
- Changes in consumer preferences and competition in the industry could impact sales.
- The company's performance is subject to the cyclical and seasonal nature of the RV business.
- The company is dependent on the availability of adequate capital and faces risks related to its debt.
- The company's reliance on third-party suppliers and lending institutions poses a risk.
- The company faces risks associated with selling goods manufactured abroad.
- The company may incur asset impairment charges for goodwill, intangible assets or other long-lived assets.
- The company faces ongoing or future lawsuits against it and certain of its officers and directors.
Future Outlook
The company believes it has laid the groundwork for improving fundamentals going forward, with a focus on achieving unit volume, market share, and earnings growth goals for 2024, while continuing its march to 320 locations by 2028. They expect the used business to improve as they move through the year.
Management Comments
- Marcus Lemonis, Chairman and CEO, stated that their efforts to drive down invoice pricing and widen the consumer affordability funnel resulted in new unit sales meaningfully outpacing broader RV industry trends.
- Matt Wagner, COO, commented that they have been successful in rebalancing their used inventory position and intend to reinvest in building stocking levels.
- Mr. Lemonis concluded that with significant new unit volume momentum and a dominant inventory position, they believe they have laid the groundwork for improving fundamentals going forward.
Industry Context
The company's performance is mixed, with strong new vehicle sales contrasting with declines in used vehicle sales and overall profitability. This suggests that while the company is gaining market share in new vehicles, it is facing challenges in the used vehicle market and overall cost management. The company is bucking industry trends with new vehicle sales, but is still impacted by the broader economic environment.
Comparison to Industry Standards
- Camping World's new vehicle unit sales growth of 21.3% significantly outpaces the broader RV industry trends, suggesting a competitive advantage in this segment.
- However, the company's used vehicle sales decline of 14.0% is a concern, as it indicates potential challenges in managing used inventory and pricing.
- Compared to competitors like Thor Industries and Winnebago, who also reported mixed results in recent quarters, Camping World's focus on new vehicle sales appears to be a differentiating factor.
- The decline in gross margin and adjusted EBITDA is a common theme across the industry, reflecting the impact of inflation and discounting, but Camping World's decline is more pronounced.
- The company's expansion to 215 locations is a positive sign, but it needs to be balanced with improved profitability and cost management.
Stakeholder Impact
- Shareholders will be concerned about the net loss and significant decrease in adjusted EBITDA.
- Employees may be impacted by potential cost-cutting measures.
- Customers may benefit from lower new vehicle prices, but may be impacted by changes in used vehicle pricing.
- Suppliers may be affected by changes in inventory management and procurement strategies.
- Creditors will be monitoring the company's financial performance and debt levels.
Next Steps
- The company intends to reinvest in building its stocking levels in a disciplined manner.
- The company will continue its march to 320 locations by 2028.
- The company will hold an earnings conference call on May 2, 2024, to discuss the results.
Key Dates
- May 1, 2024: Date of the earnings announcement and press release.
- May 2, 2024: Scheduled date for the company's earnings conference call.
Keywords
RV, Camping World, Recreational Vehicles, New Vehicle Sales, Used Vehicle Sales, Retail, EBITDA, Gross Margin, Financial Results, Market Share
CWH
Camping World Holdings, INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 June 2025 8:00 PM
Beneficial Ownership Report
- The disclosure of a new 5.3% passive stake by a major institutional investor like Millennium Management is generally viewed as a positive signal for the company, indicating confidence from a sophisticated market participant.
Worse than expected
1 May 2025 5:04 PM
Quarterly Report
- The company reported a net loss, which is worse than breakeven or a profit.
- Active customer count decreased by 14.2% year-over-year.
- Good Sam Club membership decreased by 13.2% year-over-year.
Better than expected
29 April 2025 4:10 PM
Earnings Release
- The company's Adjusted EBITDA increased nearly 4x year-over-year.
- The company's net loss improved by 51.4% year-over-year.
Worse than expected
4 April 2025 4:05 PM
Definitive Proxy Statement
- The company experienced a net loss of $(78.9) million in 2024, compared to net income in previous years.
- Adjusted EBITDA decreased by 37.5% from 2023 to 2024.
- The company had a shortfall from the budgeted Adjusted EBITDA goal of $371.4 million with final consolidated Adjusted EBITDA performance of $178.8 million.
Worse than expected
28 February 2025 9:06 PM
Annual Results
- Revenue decreased from $6.23 billion to $6.10 billion.
- Net income decreased from $52.9 million to a net loss of $(78.9) million.
- Adjusted EBITDA decreased from $286.2 million to $178.8 million.
Better than expected
25 February 2025 4:10 PM
Earnings Release
- The company's Q4 results show improvements in revenue, gross profit, and adjusted EBITDA compared to the previous year, indicating a positive trend.
Delay expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The dissolution of CWGS Holding, LLC and ML Acquisition Company, LLC, which was previously expected to occur by December 31, 2024, has been delayed indefinitely, as the Reporting Persons do not know when it may occur in the future.
Worse than expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The document states that the previously disclosed belief that CWGS Holding, LLC and ML Acquisition Company, LLC would be dissolved by December 31, 2024, did not materialize. This non-occurrence of an expected event, particularly one that could simplify corporate structure, is a negative deviation from prior expectations.
Better than expected
14 January 2025 4:31 PM
Investor Presentation
- Camping World's new unit sales growth of 22% significantly outperformed the industry's decline of 13%.
Capital raise
1 November 2024 4:15 PM
Capital Raise Announcement
- The company is issuing 14,634,146 shares of Class A common stock at $20.50 per share.
- Underwriters have an option to purchase an additional 2,195,121 shares.
- The company expects to receive approximately $288.8 million in net proceeds from the offering.
Worse than expected
29 October 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings, Inc. decreased significantly year-over-year.
- The company's gross profit decreased by 4.7% year-over-year.
- The company's same store revenue decreased by 2.7%.
Worse than expected
28 October 2024 4:10 PM
Quarterly Report
- Net income decreased by 73.9% year-over-year, indicating a significant decline in profitability.
- Adjusted EBITDA decreased by 28.9% year-over-year, reflecting a substantial drop in operational performance.
- Diluted earnings per share decreased by 71.9% year-over-year, showing a sharp decline in earnings per share.
- Used vehicle revenue decreased by 24.2% year-over-year, indicating a significant drop in sales in this segment.
Worse than expected
13 September 2024 7:09 PM
SEC Form 4 Filing
- The CEO selling a significant amount of shares is worse than expected.
Capital raise
30 August 2024 4:06 PM
Credit Agreement Amendment
- The company has increased its borrowing capacity by $50 million.
- There is an option to request an additional $100 million in borrowing capacity.
Worse than expected
1 August 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings decreased significantly by 66.0% year-over-year.
- The company's same-store revenue decreased by 10.8%, indicating a decline in sales performance at established locations.
- The company's used vehicle revenue decreased by 22.8%, reflecting a significant downturn in that segment.
Worse than expected
31 July 2024 4:10 PM
Quarterly Report
- Net income decreased by 63.8% year-over-year.
- Adjusted EBITDA decreased by 24.2% year-over-year.
- Used vehicle revenue decreased by 22.8% year-over-year.
- The company experienced a decline in average selling prices for both new and used vehicles.
Worse than expected
3 May 2024 4:12 PM
Quarterly Report
- The company's net loss of $22.3 million is a significant decrease from the net income of $3.2 million in the same period last year.
- The company's total revenue decreased by 8.3% year-over-year, indicating a decline in sales.
- The company's used vehicle sales and gross profit experienced a substantial decline, impacting overall profitability.
- The company's active customer base decreased by 8.8% year-over-year, indicating a loss of market share.
Worse than expected
1 May 2024 4:10 PM
Quarterly Report
- The company reported a net loss of $50.8 million, a significant downturn from the previous year's net income of $4.9 million.
- Adjusted EBITDA decreased substantially by 86.5% to $8.2 million.
- Gross profit and gross margin decreased, impacting overall profitability.
Worse than expected
21 February 2024 4:12 PM
Annual Results
- The company's full-year revenue, net income, and adjusted EBITDA were all significantly lower than the previous year.
- The company experienced a net loss for the fourth quarter.
- The company reduced its annualized cash dividend by $1.00 per share.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.