Camping World Holdings, Inc. reported revenue of $1.8 billion for the 2024 second quarter, a decrease of 5.0 percent from the 2023 Q2 period. However, the company may see some dawning light over the summer as year-over-year same-store new vehicle unit growth accelerated into the mid-teens in June and into the low-twenties in July. Company Chairman and CEO Marcus Lemonis said this positions the company well for a strong 2025.

“Our record new unit market share was a direct result of listening to the consumer and their mandate for affordability,” Lemonis added.

Combined new and used vehicle unit sales were 37,784, an increase of 3.0 percent year-over-year.

  • New vehicle revenue was $847.1 million for the second quarter, an increase of $46.2 million, or 5.8 percent, and new vehicle unit sales were 22,084 units, an increase of 3,187 units, or 16.9 percent year-over-year. Same-store new vehicle unit sales increased 9.7 percent for the second quarter.
    • The average selling price of new vehicles declined 9.5 percent during the second quarter, driven primarily by the lower cost of 2024 model-year travel trailers and discounting of pre-2024 model-year new vehicles.
  • Used vehicle revenue was $480.8 million for the second quarter, a decrease of $142.2 million, or 22.8 percent. Used vehicle unit sales were 15,700 units, a decrease of 2,074 units, or 11.7 percent year-over-year. Same-store used vehicle unit sales decreased 17.0 percent year-over-year.
    • The average selling price of used vehicles declined 12.6 percent during the second quarter due to the discounting of used vehicles in response to declines in new vehicle prices to maintain used vehicles as a lower-cost alternative to new vehicles.

Products, services, and other revenue was $235.9 million, a decline of $11.8 million, or 4.8 percent year-over-year. This was said to be driven largely by a reduction in sales activity resulting from the company’s Active Sports Restructuring and fewer used vehicles sold, which led to a decline in retail product attachment to vehicle sales, partially offset by increases in RV service revenue.

Gross profit was $547.7 million for the quarter, a decrease of $23.4 million, or 4.1 percent year-over-year. The gross profit decline was mainly due to the 5.0 percent decrease in revenue, partially offset by the increase in gross margin.

Total gross margin was 30.3 percent of sales, an increase of 27 basis points versus Q2 2023. The gross margin increase included a 543 basis-point improvement in products, service and other gross margins from higher labor billing rates on warranty service, the sale of the company’s RV furniture business, improvements to the pricing for aftermarket accessories, and prior-year incremental inventory reserve charges of $2.6 million relating to the Active Sports Restructuring that were not recurring in 2024. This gross margin increase was partially offset by a 392 basis point decrease in used vehicles’ gross margin, driven by the decrease in the average selling price of used vehicles partially offset by a decrease in the average cost of used vehicles sold.

Selling, general and administrative expenses (SG&A) were $419.7 million, a decrease of $1.2 million, or 0.3 percent year-over-year. SG&A excluding Equity-based Compensation was relatively unchanged at $414.4 million, a decrease of $0.2 million, or 0.1 percent, for the quarter, driven by $6.7 million reduced employee compensation costs and $5.8 million of reduced professional fees and services, partially offset by $11.8 million of additional advertising expenses.

Floor plan interest expense was $27.8 million, an increase of $7.1 million, or 34.5 percent, and other interest expense, net was $36.2 million, an increase of $2.6 million, or 7.9 percent. These increases were primarily due to the rise in interest rates and higher principal balances.

Net income was $23.4 million for the second quarter of 2024, a decrease of $41.3 million, or 63.8 percent.

Diluted earnings per share of Class A common stock were 22 cents for the second quarter of 2024 versus diluted earnings per share of Class A common stock of 64 cents for the second quarter of 2023.

Adjusted earnings per share, diluted of Class A common stock, was 38 cents for the second quarter of 2024 versus adjusted earnings per share, diluted of Class A common stock, of 73 cents for the second quarter of 2023.

Adjusted EBITDA was $105.6 million, a decrease of $33.7 million, or 24.2 percent, primarily due to a $23.4 million decrease in gross profit and the $7.1 million increase in floor plan interest.

“As we prepare for an improved 2025, our unwavering philosophy is to remain disciplined around used aging and stocking levels, regardless of the macro environment,” commented Matt Wagner, president of Camping World Holdings, Inc. “Over the last 30 days, we have begun to thoughtfully ramp up our used stocking levels, with year-over-year increases for the first time in over ten months and a record volume of consignments. We have proceeded judiciously in mitigating used inventory risk, which will keep pressure on used vehicle margins and volume in the second half.”

Lemonis concluded, “We are unbelievably encouraged by our new vehicle’s performance over the last several months, but especially the last 60 days. However, we are not naive about the macroeconomic environment around us, and we are taking a more aggressive position around our cost structure and the optimization of underperforming locations.”

The total number of Camping World store locations was 215 as of June 30, 2024, a net increase of 12 stores from June 30, 2023, or 5.9 percent growth year-over-year.

Image courtesy Camping World Holdings, Inc.