Shares of Camping World Holdings (CWH 6.83%) were falling today after the leading RV dealer reported declining revenue in the fourth quarter and worse-than-expected results on the bottom line.
What really seemed to sink the stock, however, was management's decision to pause its dividend.
The company did call for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to continue into 2026.
As of 10:54 a.m. ET, the stock was down 19.6% on the news.
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Camping World continues to struggle
Camping World is sensitive to the macroeconomic climate, and years of inflation and a worsening job market seem to be weighing on its growth.
Revenue in the quarter fell 2.6% to $1.17 billion, which essentially matched estimates at $1.16 billion. New vehicle sales, the company's highest-margin category, were down 8% to $457.8 million, and units fell 7.1% to 10,750. Used-vehicle sales helped make up for some of that shortfall.
New-vehicle inventory, meanwhile, jumped 20%, showing the company overestimated demand, which led to a 20% decline in average gross profit per new unit to $5,231.
On the bottom line, its adjusted EBITDA loss widened from $2.5 million to $26.2 million, and its adjusted loss per share widened from $0.47 to $0.73 in the seasonally slow fourth quarter.
Finally, management said that it would suspend its dividend, which was yielding close to 5%, in order to focus on net debt reduction. That seemed to be the biggest reason for the sell-off.
NYSE: CWH
Key Data Points
What's next for Camping World
Looking ahead to 2026, management noted "early season RV show momentum," and it forecast adjusted EBITDA of $275 million-$325 million, up 23.5% from 2025.
It's also focused on correcting its inventory levels, meaning markdowns to clear inventory would lead to gross margin headwinds in the first half of the year, followed by tailwinds in the second half.
Overall, Camping World has been struggling with billions in debt, and a turnaround seems difficult without an improvement in the macro-level economy.
