Camping World (CWH) Q2 Revenue Jumps 9%

Camping World (CWH -5.63%), the nation’s largest retailer of recreational vehicles (RVs) and related services, issued its Q2 2025 earnings results on July 29, 2025. The release reported GAAP revenue of $2.0 billion, surpassing consensus GAAP revenue estimates of $1.88 billion, revenue rose 9.4% compared to the prior year. Despite this top-line outperformance, adjusted diluted earnings per share (EPS, Non-GAAP) of $0.57 missed the analyst expectation of $0.60. Vehicle unit sales, especially on the used side, increased significantly, but also highlighted slipping margins in some categories and persistent cost pressures. Overall, the period reflected top-line momentum driven by used vehicle strength and operational discipline, even as certain non-GAAP profit metrics trailed Wall Street forecasts.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Camping World: Core Business and Strategic Focus Areas

Camping World is a leading retailer of RVs, offering new and used vehicles, aftermarket parts, financing, insurance, and maintenance services throughout the United States, making the company a key player for both RV sales and ongoing customer support.

The business focuses on several vital areas for long-term success. These include expanding and optimizing its national dealership network, maximizing profit in high-margin services such as Good Sam roadside assistance and club memberships, and maintaining top-tier customer service and inventory management. Managing seasonality in sales, defending and growing market share, and consistently improving operational efficiency are also ongoing priorities.

Highlights from the Quarter: Financial and Operational Developments

This period saw record vehicle unit sales, with 45,602 RVs sold – an increase of 20.7% from the prior-year quarter. Both new and used RV categories delivered robust volume growth. New vehicles saw unit growth of 20.9%, although the average selling price dropped by 10.6%, reflecting greater emphasis on lower-priced, entry-level products. New vehicle gross margin declined to 13.8% from 15.3%.

Used vehicle sales and margins stood out. Used vehicle revenue rose 19.0%, and gross margin improved to 20.5% from 19.0%. The company saw per-unit gross profit on used RVs rise 6.6%. These improvements came from effective procurement strategies that ensured supplies of used inventory. Management highlighted that shifting focus to used RVs provided resilience as new vehicle average selling prices faced pressure.

The Products, Service, and Other segment, which includes service labor, aftermarket parts, and formerly sold furniture, saw revenue decrease 5.5%, mainly due to the divestiture of the RV furniture business and reallocating service labor toward reconditioning used RVs. Although segment revenue dropped, gross margin increased to 47.8%, benefiting from a higher share of more profitable aftermarket parts and elimination of the lower-margin furniture product line.

However, gross margin shrank to 59.5%, down from 67.3% a year prior, as the cost of roadside assistance claims rose considerably.

The company continued cost-cutting efforts, reducing its workforce by more than 900 employees and closing 16 underperforming store locations. Interest expense on floorplan financing – which represents the cost of inventory loans – fell by 24.5%, reflecting successful debt paydown and lower rates. Net income (GAAP) increased by 145.7% to $57.5 million, and adjusted EBITDA margin improved from 5.8% to 7.2%.

From a network perspective, Camping World’s store footprint declined 6.5% year-over-year, finishing the period at 201 retail locations, a reversal from its previous expansion strategy. The company is now focused on growing sales per location and boosting the efficiency of each site.

Inventory management was also a theme. New vehicle inventory declined 9.9% to $1.33 billion, while used inventory increased 53.4% to $537 million, supporting the increase in used vehicle sales, and new vehicle turnover rates improved.

The quarter also featured a one-time benefit from the divestiture of the RV furniture business. This move contributed to segment margin improvement in Products, Service, and Other, but also reduced total revenue in that area. Cash and cash equivalents were $118 million, and it paid down more than $75 million in debt since October of last year, which was aided by new legislation allowing for lower cash tax outflows in future periods.

Looking Forward: Guidance and Key Areas to Monitor

For the remainder of FY2025, Camping World expects new unit volumes to grow by high-single digit percentages, while acknowledging that average selling prices for new vehicles may remain 10–12% below last year for the full year. Management has set a target to continue improving SG&A as a percentage of gross profit by 300 to 400 basis points for FY2025, compared to a baseline of 86.2% for FY2024, and is aiming for $500 million or more in adjusted EBITDA at the current store count midpoint. Camping World noted its medium-term goal of raising market share above 20% and continuing operational cost improvements.

Leadership did not issue specific revenue or earnings guidance for the next quarter but indicated confidence in the cost structure reductions already enacted. Investors should watch for trends in new vehicle pricing, further margin compression or recovery in the Good Sam business, and changes in active customer and membership numbers, both of which declined double digits year-over-year (Active Customers down 11.4%, Good Sam Club members down 11.6%). Management’s ongoing focus areas include maximizing per-store productivity, potential further debt reduction, and flexible updates to its store network and business model as market conditions change.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.