CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Outpaces Industry in New Unit Sales, Focuses on Affordability and Used Vehicle Growth
Sentiment:
Investor Presentation
14 January 2025 4:31 PM
Camping World is seeing strong new unit sales growth, while strategically managing used unit pricing and expanding its private label offerings.
Better than expected
Camping World's new unit sales growth of 22% significantly outperformed the industry's decline of 13%.
Summary
- Camping World is presenting to investors on January 14, 2025, discussing sales trends and a general business update.
- The company is outperforming the industry in new unit sales growth year-to-date through November 30, 2024, with a 22% increase compared to an industry decline of 13%.
- While used unit sales have declined, Camping World has been mitigating pricing risks in this segment.
- The company is focusing on affordability and driving consumer value, with average sales prices for both towable and motorized RVs being lower than the industry average.
- Camping World is introducing targeted private label units for the 2025 model year, with some price points not seen in over five years.
- The company expects used vehicle unit volume growth in excess of low-double digits for 2025.
- Camping World has a 7% market share in new vehicles and a 20% market share in used vehicles based on trailing-twelve-month data through November 30, 2024.
- The company is actively pursuing dealership acquisitions, with a recent transaction involving 7 Lazydays locations expected to close in the first quarter of 2025.
- Camping World has completed its first RV and marine-centric securitization since the early 2000s through the Octane Receivables Trust 2024-RVM1, which reduces upfront capital requirements and enhances interest spread.
Sentiment
Score: 8
Explanation: The document presents a positive outlook for Camping World, highlighting strong new unit sales growth, strategic initiatives in private label and used vehicles, and a successful securitization. The company is outperforming the industry and has a clear plan for future growth. However, there are some risks mentioned, which prevents a perfect score.
Positives
- Camping World is significantly outperforming the industry in new unit sales growth.
- The company is focusing on affordability, offering lower average sales prices than the industry.
- Private label introductions are expected to drive additional market share gains.
- The company anticipates strong growth in used vehicle unit volume in 2025.
- The recent securitization is expected to improve capital efficiency.
- The company is actively expanding through strategic acquisitions.
Negatives
- Used unit sales have declined year-to-date, although this is attributed to mitigating pricing risks.
- The company's market share in new vehicles is only 7%, indicating room for improvement.
- The company is dependent on third-party suppliers and lending institutions.
Risks
- General economic conditions, including inflation and interest rates, could impact the business.
- The availability of financing to the company and its customers is a risk.
- Fuel shortages or high prices for fuel could affect demand.
- Changes in consumer preferences and competition in the industry are ongoing risks.
- The company faces risks related to acquisitions, new store openings, and expansion into new markets.
- The company's ability to manage inventory and maintain brand value are important factors.
- The cyclical and seasonal nature of the business could lead to fluctuations in sales.
- The company is dependent on adequate capital and faces risks related to its debt.
- Natural disasters, including epidemic outbreaks, could disrupt operations.
- Data privacy and cybersecurity risks are a concern.
- Ongoing or future lawsuits against the company and its officers and directors could have a negative impact.
Future Outlook
The company expects to capture additional market share through targeted private label units and anticipates used vehicle unit volume growth in excess of low-double digits for 2025. The company also expects the dealership M&A environment to remain robust.
Management Comments
- Management is focused on affordability and driving consumer value.
- Management expects to capture additional market share gains through targeted private label units.
- Management anticipates used vehicle unit volume growth in excess of low-double digits for 2025.
Industry Context
Camping World's focus on affordability and private label offerings comes at a time when the RV industry is facing challenges, including declining sales and pricing pressures. The company's ability to outperform the industry in new unit sales suggests a strong competitive position.
Comparison to Industry Standards
- Camping World's new unit sales growth of 22% year-to-date through November 30, 2024, significantly outperforms the industry average decline of 13%.
- The company's average sales prices for both towable and motorized RVs are lower than the industry average, indicating a focus on affordability.
- The introduction of private label units with prices significantly lower than industry averages, such as a travel trailer at $9,999 compared to the industry average of $37,367, is a notable differentiator.
- The company's used vehicle market share of 20% is a significant portion of the market, indicating a strong presence in this segment.
- The securitization through the Octane Receivables Trust 2024-RVM1 is a strategic move to improve capital efficiency, which is not a common practice in the RV industry.
Stakeholder Impact
- Shareholders may benefit from the company's strong performance and strategic initiatives.
- Customers may benefit from more affordable RV options.
- Employees may benefit from the company's growth and expansion.
- Suppliers may benefit from increased demand for RV components.
- Creditors may benefit from the company's improved financial position.
Next Steps
- The company will continue to focus on driving consumer value and affordability.
- The company will introduce targeted private label units for the 2025 model year.
- The company will focus on growing used vehicle unit volume in 2025.
- The company will continue to pursue strategic acquisitions.
Key Dates
- January 14, 2025: Date of investor presentation and 8-K filing.
- January 22, 2046: Final maturity date for the Octane Receivables Trust 2024-RVM1 securitization.
Keywords
RV, Recreational Vehicles, Camping World, New Unit Sales, Used Unit Sales, Private Label, Dealership Acquisition, Securitization, Market Share, Affordability
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.
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.
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.
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.