What happened

Shares of Camping World Holdings (CWH -2.51%), the nation's largest retailer of recreational vehicles (RVs), declined over 21% Thursday afternoon despite the company turning in a second-quarter result that blew away analysts' estimates. What's going on?

So what

Investors sifting through the company's second-quarter highlights will find much to like. Revenue increased 9% to $1.6 billion, easily topping analysts' estimates of $1.52 billion. Camping World's adjusted earnings-per-share checked in at $1.62, which blew away analysts' estimates of $0.57 per share. Further, gross profit increased 19.2%, and gross margin increased 260 basis points to 30.4%.

Marcus Lemonis, chairman and CEO of Camping World Holdings, said in a press release:

Over the past 24 months, we have made significant investments and enhancements in our digital capabilities, which has allowed us to quickly pivot and handle the surge in web traffic, call center volume and lead volume that we have seen since mid-April for our products and services.

A couple standing in front of their RV are enjoying the outdoors.

Image source: Getty Images.

Now what

Despite posting a solid second quarter and despite strong demand from consumers looking to vacation and get out of the house more safely during COVID-19, the stock plunged over 21% Thursday. One possible explanation is simply that investors are taking some profits off the table.

CWH Chart

CWH data by YCharts

It's easy to forget that Camping World hit a mid-March intraday low of $3.40 per share before peaking August 5, 2020 at $42.29 per share. So it's understandable if some investors are cashing out of the consumer-discretionary stock. It'll be up to management to make sure this COVID-19-fueled demand is more than a flash in the pan and that Camping World can turn current demand into lifelong RV consumers.