Shares of Camping World Holdings (NYSE:CWH) fell more than 13% on Thursday morning after the RV retailer reported second-quarter earnings that were below consensus and warned that it expects full-year earnings to come in short of expectations as well.
After markets closed Wednesday, Camping World reported second-quarter earnings of $0.46 per share, well below the $0.66 consensus estimate, despite generating revenue of $1.47 billion, $20 million ahead of expectations. The company also said it expects full-year adjusted EBITDA to come in at the "mid- to low" $200 million range, well short of the $283 million consensus estimate.
CEO Marcus A. Lemonis, a private-equity veteran who is best known as host of CNBC's The Profit, said that a combination of margin compression and increased selling expenses would weigh on future-quarter results.
"As a management team, we've spent considerable time looking at multiple scenarios and have concluded that for purposes for full year 2019 guidance, we must assume that the current market conditions and uncertainties will continue," Lemonis said during a post-earnings call with investors.
Camping World has traveled a rough road, with shares now down 80% since the beginning of 2018. In May, after a disappointing first-quarter report, managers said they saw signs of a possible turnaround in the market and kept their full-year outlook intact. It now appears profit deterioration might accelerate in the second half.
Lemonis said Camping World is "focused on optimizing our assets and improving the RV consumer experience" while waiting for what he called "broader macro factors" impacting RV demand to improve. It's a process that won't happen overnight, and at least on Thursday, investors appear to be in no mood to camp out with the shares and wait for a turnaround to happen.