CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Holdings Reports Q4 2024 Results: Same Store Unit Sales Increase, Operational Improvements Continue
Sentiment:
Earnings Release
25 February 2025 4:10 PM
Camping World Holdings, Inc. reports increased revenue, gross profit, and improved adjusted EBITDA for Q4 2024, driven by growth in new and used same store unit sales.
Better than expected
The company's Q4 results show improvements in revenue, gross profit, and adjusted EBITDA compared to the previous year, indicating a positive trend.
Summary
- Camping World Holdings, Inc. (CWH) reported its financial results for the fourth quarter and full year ended December 31, 2024.
- Revenue for the fourth quarter was $1.2 billion, an increase of $95.1 million, or 8.6%.
- New vehicle revenue increased by 10.7% to $497.5 million, with unit sales up 8.0% to 11,575 units.
- Used vehicle revenue increased by 8.2% to $348.1 million, with unit sales up 11.4% to 10,573 units.
- Combined new and used vehicle unit sales were 22,148, an increase of 9.6%.
- Same store new vehicle unit sales increased 4.5%, and same store used vehicle unit sales increased 4.0%.
- Gross profit was $376.9 million, an increase of $33.5 million, or 9.7%.
- Net loss for the fourth quarter was $(59.5) million, a decrease of $12.0 million, or 25.1%.
- Adjusted EBITDA was $(2.5) million, an increase of $6.4 million, or 72.1%.
- For the full year, revenue was $6.1 billion, a decrease of $126.5 million, or 2.0%.
- New vehicle revenue increased by 9.7% to $2.8 billion, while used vehicle revenue decreased by 18.5% to $1.6 billion.
- Net loss for the full year was $(78.9) million, compared to a net income of $52.9 million in 2023.
- Adjusted EBITDA for the full year was $178.8 million, a decrease of $107.4 million, or 37.5%.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive. While the company reported a net loss for both the quarter and the year, there are positive signs such as increased revenue, gross profit, and same-store sales growth. Management's outlook for 2025 is also optimistic.
Positives
- Combined new and used same store unit sales grew for the second consecutive quarter.
- Fourth-quarter revenue increased by 8.6% to $1.2 billion.
- New vehicle revenue increased by 10.7% to $497.5 million, with unit sales up 8.0%.
- Used vehicle revenue increased by 8.2% to $348.1 million, with unit sales up 11.4%.
- Gross profit increased by 9.7% to $376.9 million.
- Adjusted EBITDA improved by 72.1% to $(2.5) million.
- Total store locations increased by four to 206 as of December 31, 2024.
- Floor plan interest expense decreased by $4.7 million, or 21.6%, in the fourth quarter.
- Same store used unit trends increased high-teens percentages year-over-year in January 2025.
- Same store new units increased low-singles, in line with expectations in January 2025.
Negatives
- Net loss for the fourth quarter was $(59.5) million.
- Full-year revenue decreased by 2.0% to $6.1 billion.
- Full-year net loss was $(78.9) million, a significant change from the $52.9 million net income in 2023.
- Full-year Adjusted EBITDA decreased by 37.5% to $178.8 million.
- Active Customers decreased by 9.5% to 4,487,313.
- Good Sam Club members decreased by 13.5% to 1,753,798.
Risks
- General economic conditions, including inflation and interest rates, could impact the business.
- Availability of financing to the company and its customers is a risk.
- Changes in consumer preferences could affect sales.
- Competition in the RV industry could impact market share and profitability.
- The cyclical and seasonal nature of the business could lead to fluctuations in revenue.
- Dependence on third-party suppliers and lending institutions poses a risk.
- Data privacy and cybersecurity risks could lead to financial losses and reputational damage.
- Climate change and other environmental, social, and governance matters could impact operations.
Future Outlook
Management expects more stable industry trends throughout 2025 and is positioned well for organic and inorganic growth, focusing on selling more RVs, cost discipline, and driving improved profitability.
Management Comments
- Marcus Lemonis, Chairman and CEO, stated that combined new and used same store unit sales grew for the second quarter in a row, with increased revenue, increased gross profit and improved adjusted EBITDA.
- Matthew Wagner, President, commented that the company is pleased with its momentum to start 2025, with same store used unit trends increasing high-teens percentages year-over-year in January, and same store new units increasing low-singles, in line with expectations.
- Mr. Lemonis concluded that the organization is positioned exceptionally well for organic and inorganic growth in 2025, focusing on selling more RVs, cost discipline, and driving significantly improved profitability.
Industry Context
The announcement suggests a potential stabilization and recovery in the RV industry after a period of challenges, with Camping World aiming to capitalize on this trend through strategic initiatives and cost management.
Comparison to Industry Standards
- It's difficult to provide a precise comparison without knowing the exact performance of Camping World's direct competitors (e.g., Thor Industries, Winnebago Industries) during the same period.
- However, the reported increase in same-store sales and focus on used vehicle sales align with industry trends of consumers seeking more affordable options.
- The company's emphasis on cost discipline and profitability improvement is a common theme among retailers in the current economic environment.
- The growth in new vehicle unit sales contrasts with the decline in used vehicle unit sales, indicating a shift in consumer preferences or inventory management strategies compared to industry averages.
Stakeholder Impact
- Shareholders may be concerned about the net loss but encouraged by the revenue growth and improved EBITDA.
- Employees may benefit from the company's focus on growth and profitability.
- Customers may see improved service and product offerings as the company invests in its operations.
- Suppliers may experience increased demand as the company aims to sell more RVs.
Next Steps
- The company will hold a conference call on February 26, 2025, to discuss the results.
- The company intends to use its social media channels and investor webpage to distribute material information.
Key Dates
- October 6, 2016: Initial public offering and related reorganization transactions occurred.
- May 2024: Divestiture of RV furniture business.
- December 31, 2024: End of the fourth quarter and full year.
- February 25, 2025: Date of the earnings announcement.
- February 26, 2025: Earnings conference call scheduled at 7:30 am Central Time.
Keywords
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.