8-K: Camping World Holdings Reports Q4 2024 Results: Same Store Unit Sales Increase, Operational Improvements Continue

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.

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