What happened
Shares of recreational vehicle retailer Camping World (CWH 0.22%) surged 15% in August, according to data provided by S&P Global Market Intelligence. A strong second-quarter report featuring double-digit revenue growth and better-than-expected earnings was the main driver behind the soaring stock price.
So what
Camping World reported second-quarter revenue of $1.28 billion, up 20% year over year and $110 million higher than the average analyst estimate. Same-store sales surged 10.6% to $1.1 billion, with the rest of the company's revenue coming from new locations. Camping World sold 21,930 new units during the quarter, up 38.2% year over year, and 9,073 used units, down 8.4% year over year.
Image source: Camping World.
Non-GAAP net income came in at $0.91 per share, up from $0.65 per share in the prior-year period and $0.23 better than analysts were expecting. "We believe these results clearly demonstrate the power and leverage of our unique operating model, which sells a comprehensive portfolio of products and services across a growing database of consumers being driven by our national network of retail locations that cater to RV, boating and outdoor enthusiasts," said Camping World CEO Marcus Lemonis.
Camping World generated a substantial amount of revenue from areas beyond selling new and used units. Consumer services and plans produced $48.1 million of revenue, parts, services, and others produced $174.2 million of revenue, and finance and insurance added up to $101.0 million of revenue.
Now what
Lemonis sees Camping World catering to a wide swath of consumers, not just RV owners: "While our business model has traditionally been focused on the RV owner, we see a much broader opportunity to leverage our products and services across the larger base of outdoor lifestyle consumers."
Camping World's second-quarter results were impressive. RV sales is an area of retail that's unlikely to be disrupted by e-commerce, although it remains highly sensitive to the overall health of the economy. For now, the good times are rolling at Camping World.
