In a veritable roller-coaster ride of a month after posting disappointing third-quarter results, shares of Camping World (CWH 9.08%) managed to climb 10% in November, according to data from S&P Global Market Intelligence, as some on Wall Street speculated better days lie ahead for the recreational vehicle retailer.
To be sure, Camping World enjoyed an immediate boost to start last month, rising 10% on Nov. 1 alone, thanks to a combination of encouraging industry data and strong quarterly reports from both RV component leader LCI Industries and ride-dynamics product specialist Fox Factory Holding.
Less than a week later, however, Camping World's own disappointing third-quarter results dampened that enthusiasm. Shares dropped 11% on Nov. 7, 2018, after the company told investors its revenue climbed a modest 6.2% year over year to $1.31 billion, translating to adjusted earnings of $0.49 per share. Analysts, on average, were modeling higher earnings of $0.62 per share on revenue of $1.41 billion.
That decline essentially brought Camping World stock back to where it started last month. Company Chairman and CEO Marcus Lemonis remained positive, stating:
In a highly fragmented industry that is primarily comprised of smaller independent operators, we believe we have a strategic operating advantage. No RV dealer in the industry has more combined resources, experience and scale than Camping World, and our model was designed with the goal [of] navigating through the various ups and downs of the industry and delivering long-term profitable growth. At a time of excess channel inventory, rising input costs, rising interest rates, volatility in the stock market and uncertainty around the broader economy, we aggressively managed our RV inventory levels, controlled SG&A expenses, stayed disciplined on our pricing, and focused on margins and cash flow.
Perhaps unsurprisingly, shares began to drift higher again late last month after KeyBanc analyst Brett Andress pointed to October data indicating that RV channel inventories should begin to normalize in early 2019 -- an encouraging trend that should leave Camping World well positioned to benefit.
Still, it's worth noting that Camping World stock has all but given up last month's gains so far in December, particularly as the broader markets have endured steep losses amid macroeconomic and international trade concerns. I suspect, then, that shares will continue to be volatile until the company can demonstrate more tangible signs of improving RV-industry dynamics.