What happened
Shares of Camping World (CWH 2.79%) fell 39.2% in December, according to data from S&P Global Market Intelligence, both as the broader market fell and as the RV retailer disclosed some unexpected executive turnover.
Note the S&P 500 plunged 9% last month on concerns of slowing global economic growth. But Camping World endured more than its fair share of pain, including a more-than-11% single-day decline on Dec. 21, 2018 alone, despite a relative lack of company-specific news.
IMAGE SOURCE: CAMPING WORLD HOLDINGS.
So what
To be fair, I did write at the time that Camping World was already reeling from both its disappointing third-quarter report in early November and potential pressure stemming from the Federal Reserve's decision to raise interest rates for the fourth time in 2018.
If that wasn't enough, Camping World also plunged nearly 10% on New Year's Eve after a Dec. 28 SEC filing revealed company president Roger Nuttall had resigned from his post a week earlier. It certainly didn't help that Camping World declined to elaborate on either the delay for its disclosure or the reasons behind the resignation.
Now what
That said, Camping World shareholders have seen some relief in the first few days of 2019. Shares soared 12% on Jan. 2, 2019, for example, after the company announced an ambitious management shake-up aimed at "[improving] performance and process in key areas."
And just today, Camping World stock climbed a modest 2.4% after it announced its acquisition of Minnesota-based Coates RV, broadening its presence in the state with two new locations. However small, the move indicates Camping World remains dedicated to its expansion strategy despite recent headwinds in the RV space.
Over the long term, these kinds of measured purchases should leave Camping World better poised to benefit when the RV market rebounds.
Check out the latest Camping World Holdings earnings call transcript.
