What happened

Strength in the recreational vehicle (RV) market continues, with the largest retailer in the U.S. reporting another quarter of growing earnings yesterday. Camping World Holdings (NYSE:CWH) said that net income grew more than 22% in the most recent quarter, and raised its full-year guidance after the strong quarter. Investors reacted favorably today, with Camping World shares jumping 11% as of 1:14 p.m. EDT. 

So what

Recent reports from RV manufacturers have confirmed that demand and order backlogs remain strong after spiking during the pandemic. The desire to pursue outdoor activities like camping and boating hasn't wavered even as pandemic-inspired restrictions have given way to more social interactions. Camping World reported revenue growth of 14.2% year over year in addition to its earnings growth, enabling the company to boost its 2021 fiscal full-year guidance.

father and daughter at camping site in front of RV.

Image source: Getty Images.

Now what

Camping World raised its full-year guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from a midpoint of $850 million provided in early August to a new range of $915 million to $930 million. 

The company has substantially increased inventories of both new and used vehicles as RV demand brings record results to manufacturers. Last month, Winnbego reported record quarterly revenue with more than 40% year-over-year growth, which the company said was "driven by strong end consumer demand." Competitor Thor Industries announced similar results in late September, with record fiscal 2021 results. 

Camping World management has also been a believer in its business, as it repurchased more than $40 million worth of shares during the most recent quarter at an average price of just over $39. With shares now trading over $43, that seems like a prudent move.

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