CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Holdings Reports Strong Q1 2025 Results, Adjusted EBITDA Nearly Quadruples
Sentiment:
Earnings Release
29 April 2025 4:10 PM
Camping World Holdings, Inc. announced significant year-over-year improvements in Adjusted EBITDA and accelerating momentum through April, driven by growth in revenue, volume, margin, and profitability.
Better than expected
The company's Adjusted EBITDA increased nearly 4x year-over-year.
The company's net loss improved by 51.4% year-over-year.
Summary
- Camping World Holdings, Inc. reported its first quarter 2025 results, showing growth in revenue, volume, margin, and profitability.
- Revenue increased by 3.6% to $1.4 billion.
- Adjusted EBITDA saw a substantial increase, nearly quadrupling compared to the prior year, reaching $31.1 million.
- The company experienced record new and used combined unit market share.
- Used vehicle revenue increased by 25.1%, while new vehicle revenue decreased by 5.3%.
- Combined new and used vehicle unit sales increased by 11.2% to 30,665 units.
- The average selling price of new vehicles decreased by 4.4%, and used vehicles decreased by 4.0%.
- Same store used vehicle unit sales increased by 28.5%, while new vehicle unit sales decreased by 2.0%.
- Gross profit increased by 6.8% to $429.6 million, and total gross margin increased by 89 basis points to 30.4%.
- Net loss improved by 51.4% to $24.7 million.
- The company had 209 store locations as of March 31, 2025, a net decrease of six locations from the previous year.
- The company expects SG&A as a percentage of gross profit improving by 600-700 basis points.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with significant improvements in key financial metrics, particularly Adjusted EBITDA and net loss. Management's comments are optimistic, and the company is confident in its future growth prospects.
Positives
- Significant improvement in Adjusted EBITDA, increasing nearly 4x year-over-year.
- Growth in used vehicle revenue and unit sales.
- Increase in total revenue and gross profit.
- Improvement in net loss compared to the previous year.
- Increase in same store used vehicle unit sales.
- Floor plan interest expense decreased by 34.3% due to lower interest rates and principal balances.
- Other interest expense decreased by 15.4% due to lower interest rates and principal balances.
Negatives
- Decrease in new vehicle revenue and unit sales.
- Decrease in same store new vehicle unit sales.
- Decrease in products, service and other revenue.
- Decrease in Good Sam Services and Plans gross margin due to higher roadside assistance claim costs.
- Increase in selling, general and administrative expenses (SG&A).
- Net loss of $24.7 million for the quarter.
Risks
- Macroeconomic and industry trends, including tariffs, could impact the business.
- Variability in average selling prices could affect profitability.
- The company's ability to manage inventory effectively is crucial.
- Fluctuations in same store sales could impact financial results.
- Dependence on the availability of adequate capital and risks related to debt.
- The cyclical and seasonal nature of the business.
Future Outlook
The company remains confident in its guideposts to deliver growth in excess of low-double digits in used units and low single digits in new units, vehicle gross margins within its historical range and SG&A as a percentage of gross profit improving by 600-700 basis points.
Management Comments
- Marcus Lemonis, Chairman and CEO, stated, 'We made the commitment at the beginning of the year to sell more units and make more money. Our results reflect a material year-over-year improvement in adjusted EBITDA, increasing nearly 4x vs. the prior year, with another period of record new and used combined unit market share.'
- Matthew Wagner, President of CWH commented, 'Our business continues to exhibit consistent growth in real time. We remain confident in our guideposts to deliver growth in excess of low-double digits in used units and low single digits in new units, vehicle gross margins within our historical range and SG&A as a percentage of gross profit improving by 600-700 basis points.'
Industry Context
Camping World's focus on increasing unit sales and improving profitability aligns with broader industry trends of adapting to changing consumer preferences and managing costs effectively. The company's emphasis on used vehicle sales reflects a potential shift in consumer demand towards more affordable options.
Comparison to Industry Standards
- It is difficult to compare Camping World directly to other companies as it is the 'Worlds Largest Recreational Vehicle Dealer'.
- Thor Industries and Winnebago are two of the largest RV manufacturers, but they do not have the same retail footprint as Camping World.
- AutoNation and CarMax are large automotive retailers, but they do not specialize in RVs.
- Camping World's Adjusted EBITDA margin of 2.2% is relatively low compared to other retailers, but it is a significant improvement from the previous year.
- The company's focus on improving SG&A as a percentage of gross profit is a positive sign, as it indicates a commitment to cost control.
Stakeholder Impact
- Shareholders will likely view the improved financial performance positively.
- Employees may benefit from the company's growth and profitability.
- Customers will continue to have access to a wide range of RV products and services.
- Suppliers may see increased demand for their products.
- Creditors may view the company as a lower credit risk.
Key Dates
- May 2024: Divestiture of RV furniture business.
- March 31, 2025: End of first quarter 2025.
- April 29, 2025: Date of the earnings release.
- April 30, 2025: Scheduled earnings conference call.
Keywords
Camping World, Recreational Vehicles, RVs, EBITDA, Revenue, Unit Sales, Gross Profit, Financial Results
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.