Camping World (CWH 1.30%), a retailer of recreational vehicles and related services, announced its earnings for the fourth quarter of 2024 on Feb. 25, 2025. The company reported an adjusted diluted earnings per share (EPS) of -$0.47, which exceeded analysts' estimates by $0.04, marking a 7.8% beat. Camping World's total revenue for the quarter was $1.2 billion, higher than the expected $1.127 billion. Despite the solid earnings results, the quarter was characterized by ongoing challenges in used vehicle sales and weather-related disruptions, impacting customer activity.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS (Diluted) | $(0.47) | $(0.51) | $(0.44) | +6.8% |
| Revenue | $1.2B | $1.127B | $1.109B | +8.6% |
| Gross Margin | 31.3% | N/A | 31.0% | +0.3 pp |
| Adjusted EBITDA | $(2.5)M | N/A | $(8.9)M | +72.1% |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Strategic Focus
Camping World operates a national network of RV dealerships and service centers, primarily situated near major highways and within key RV markets. This extensive network positions the company as a one-stop shop for recreational vehicle needs, offering new and used RVs, parts, accessories, and membership-based Good Sam services.
Recently, Camping World has focused its strategic efforts on expanding market share and enhancing profitability. The company is concentrating on optimizing its network through strategic acquisitions, including the integration of seven Lazydays locations, and leveraging its Good Sam membership to boost recurring revenue streams. Key success factors include effective inventory management and the ability to capture new and used RV sales through diversified product offerings.
NYSE: CWH
Key Data Points
Quarterly Highlights and Financial Performance
In the fourth quarter, Camping World saw new vehicle sales revenue increase by 10.7% to $497.5 million, driven by an 8% rise in new unit sales. Meanwhile, used vehicle sales improved by 8.2% to $348.1 million, with unit sales up by 11.4%.
The average selling price for new vehicles rose by 2.5%, while a 2.8% decline was noted in used vehicle prices. Margin results were mixed; the new vehicle gross margin (15.2%) decreased by 372 basis points, counterbalanced by a 368 basis point increase in used vehicle gross margin. Gross profit grew by 9.7% to $376.9 million, spurred by a boost in finance and insurance gross profit, indicative of successful cross-selling endeavors.
Operational expenditures, primarily selling, general, and administrative expenses (SG&A), rose by 9.1%. This was primarily due to increased employee compensation and advertising spending.
Strategically, the company is prepared for further growth in the Good Sam membership base despite recent declining numbers.
Challenges such as weakening RV margins due to a deflationary market and customer activity disruptions caused by adverse weather, have impacted results. Furthermore, declines in active customer numbers (down 9.5%) and a decrease in Good Sam Club membership (-13.5%) require attention.
Looking Ahead
Looking forward, Camping World's management anticipates continued revenue growth driven by strategic acquisitions and market share gains. The company is optimistic about its organic and inorganic growth plans, emphasizing stronger sales and profitability through 2025. CEO Marcus Lemonis highlighted efforts to focus on increasing RV sales and improving gross margins, expecting growth in new unit sales and overall market capture.
Investors should monitor potential shifts in market conditions and the success of planned dealership integrations. Additionally, fluctuations in the RV market, coupled with strategies targeting operational efficiencies, will be areas to watch.
