CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Reports Record New RV Market Share in Q2 2024, Despite Revenue Dip
Sentiment:
Quarterly Report
31 July 2024 4:10 PM
Camping World Holdings, Inc. announced a record new unit market share in the second quarter of 2024, with a 17% year-over-year increase in new RV sales, despite a slight decrease in overall revenue.
Worse than expected
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.
Summary
- Camping World reported its second quarter 2024 results, showing a record new unit market share.
- The company sold over 22,000 new RVs, a 17% increase year-over-year.
- Total revenue for the quarter was $1.8 billion, a decrease of $94.2 million or 5.0% compared to the same period last year.
- New vehicle revenue increased by 5.8% to $847.1 million, while used vehicle revenue decreased by 22.8% to $480.8 million.
- The average selling price of new vehicles declined by 9.5%, and used vehicles declined by 12.6%.
- Same store new vehicle unit sales increased by 9.7%, but same store used vehicle unit sales decreased by 17.0%.
- Gross profit was $547.7 million, a decrease of 4.1%, with a total gross margin of 30.3%.
- Net income was $23.4 million, a decrease of 63.8% compared to the second quarter of 2023.
- Adjusted EBITDA was $105.6 million, a decrease of 24.2%.
Sentiment
Score: 5
Explanation: The document presents mixed results. While there are positives like record market share and new vehicle sales growth, the significant declines in revenue, net income, and used vehicle sales, along with the challenging macroeconomic environment, temper the overall sentiment.
Positives
- New vehicle sales volume increased significantly, with a 16.9% increase in units sold.
- The company achieved a record new unit market share.
- Same store new vehicle unit sales increased by 9.7%.
- Gross margin improved by 27 basis points to 30.3%.
- Products, service and other gross margin improved by 543 basis points.
- The company is seeing a meaningful acceleration in same store new vehicle volume in June and July.
- Used vehicle stocking levels are increasing year-over-year for the first time in 10 months.
Negatives
- Total revenue decreased by 5.0% to $1.8 billion.
- Used vehicle revenue decreased by 22.8% to $480.8 million.
- Net income decreased by 63.8% to $23.4 million.
- Adjusted EBITDA decreased by 24.2% to $105.6 million.
- Used vehicle gross margin decreased by 392 basis points.
- Average selling prices for both new and used vehicles declined.
- Same store used vehicle unit sales decreased by 17.0%.
Risks
- The company acknowledges the challenging macroeconomic environment.
- Used vehicle margins and volume are expected to remain under pressure in the second half of the year.
- The company is taking a more aggressive position around cost structure and optimization of underperforming locations.
- Floor plan interest expense increased significantly due to rising interest rates and higher principal balances.
- The company is dependent on the availability of adequate capital and is exposed to risks related to its debt.
- The company is exposed to risks related to general economic conditions, including inflation and interest rates.
Future Outlook
The company anticipates an improved 2025 and is focused on disciplined used inventory management and cost optimization. They are encouraged by new vehicle performance but remain cautious about the macroeconomic environment.
Management Comments
- Marcus Lemonis, Chairman and CEO, stated that the record new unit market share was a direct result of listening to the consumer and their mandate for affordability.
- Matt Wagner, President, commented that the company's philosophy is to remain disciplined around used aging and stocking levels.
- Mr. Lemonis also noted that the company is taking a more aggressive position around cost structure and the optimization of underperforming locations.
Industry Context
The RV industry is experiencing a shift in consumer demand towards more affordable options, which Camping World is addressing with its pricing strategy. The company's focus on used inventory management and cost optimization reflects broader industry trends of adapting to changing market conditions.
Comparison to Industry Standards
- Camping World's new vehicle unit sales growth of 16.9% is a strong performance compared to industry averages, which have seen a more modest increase or even a decline in some cases.
- The company's used vehicle sales decline of 11.7% is in line with the industry trend of reduced used vehicle demand due to lower new vehicle prices.
- Compared to competitors like Thor Industries and Winnebago, Camping World's focus on affordability and market share gains is a differentiating factor.
- The company's gross margin of 30.3% is within the range of industry benchmarks, but the decline in used vehicle gross margin is a concern that is also being seen across the industry.
- The increase in floor plan interest expense is a common challenge for RV dealers due to rising interest rates, impacting profitability across the sector.
Stakeholder Impact
- Shareholders may be concerned about the decrease in net income and adjusted EBITDA.
- Employees may be affected by cost-cutting measures and the optimization of underperforming locations.
- Customers may benefit from the company's focus on affordability.
- Suppliers may be impacted by changes in inventory management and procurement strategies.
- Creditors may be concerned about the company's increased debt and interest expenses.
Next Steps
- The company will hold a conference call on August 1, 2024, to discuss the financial results.
- Camping World will continue to focus on disciplined used inventory management.
- The company will take a more aggressive position around cost structure and optimization of underperforming locations.
Key Dates
- July 31, 2024: Date of the press release and 8-K filing announcing Q2 2024 financial results.
- August 1, 2024: Date of the conference call to discuss the Q2 2024 financial results.
Keywords
RV, Recreational Vehicles, Camping World, Market Share, Vehicle Sales, Used Vehicles, New Vehicles, Gross Margin, EBITDA, Financial Results, Retail, Inventory, Same Store Sales
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.