Camping World Holdings, Inc. (CWH) reported profits slumped 24.0 percent in the second quarter ended June 30 as sales slid 2.1 percent. The recreational vehicle retailer slashed its earnings outlook for the year due to deteriorating RV conditions and margin pressures tied to inventory-clearance efforts.

Matthew Wagner, chief executive officer and president of CWH, stated, “Earlier this year we emphasized three priorities: growing RV market share, accelerating Good Sam, and reducing SG&A. In the second quarter, our market share exceeded last year’s record levels, Good Sam Services and Plans margin expanded, and SG&A came down $26.6 million. We delivered on our priorities in a difficult market.”

Wagner continued, “Our progress was more than offset by new RV industry trends that weakened during the peak selling season in May and June. Even so, we moved aged used inventory and prior-model-year new inventory as planned. These factors pressured vehicle gross profit and resulted in second-quarter earnings below our expectations. We are not satisfied with the result.”

Wagner added, “Building on the $35 million already realized through April, we have identified an incremental $100 million of structural SG&A savings and operating efficiencies, which we expect to be fully annualized by early 2028, with $50 million of run-rate savings expected to be achieved by the end of 2026. These savings come from simplifying how we run the business: better tools for our team, a more consistent experience for our customers, and greater operating leverage.”

Balance Sheet and Cash Flow
At the end of the second quarter of 2026, cash and cash equivalents totaled $224.1 million. Total outstanding long-term debt was $1.405 billion. The company’s net debt decreased $222.3 million, or 14.5 percent, at the end of the second quarter of 2026 compared to the second quarter of 2025. Tom Kirn, Chief Financial Officer of CWH commented, “Year-to-date we generated $333 million of operating cash flow, strengthened our balance sheet, and improved our inventory aging profile. Our capital allocation framework prioritizes disciplined capital expenditures, retention of working capital within the business, and reduction of our net debt leverage.”

Full Year 2026 Outlook
Wagner stated, “We are resetting our outlook to reflect what we know today in a highly volatile market, including a revised 2026 retail industry outlook of 290,000 to 310,000 new units, or down 15 percent year over year at the midpoint. Volume trends remain soft July-to-date, but we enter the second half of the year with healthier inventory and sequentially improving vehicle margins, which we believe gives us a path to year-over-year Adjusted EBITDA growth for the full year.”

For full year 2026, the company is lowering its previous guidance range of adjusted EBITDA of $275 million to $325 million to a new range of $230 million to $270 million.

Second Quarter Operating Highlights
Revenue was $1.9 billion for the second quarter, a decrease of $41.9 million, or 2.1 percent.

New vehicle revenue was $869.0 million for the second quarter, a decrease of $46.1 million, or 5.0 percent, and new vehicle unit sales were 22,312 units, a decrease of 4,384 units, or 16.4 percent. Used vehicle revenue was $580.3 million for the second quarter, an increase of $8.1 million, or 1.4 percent, and used vehicle unit sales were 19,882 units, an increase of 976 units, or 5.2 percent. Combined new and used vehicle unit sales were 42,194, a decrease of 3,408 units, or 7.5 percent.

Average selling price of new vehicles sold increased 13.6 percent, and average selling price of used vehicles sold decreased 3.6 percent.

Same store new vehicle unit sales decreased 16.3 percent for the second quarter and same store used vehicle unit sales increased 5.2 percent. Combined same store new and used vehicle unit sales decreased 7.3 percent.

New vehicle gross margin was 10.9 percent, a decrease of 286 basis points, driven primarily by the 17.4 percent increase in the average cost per new vehicle sold, partially offset by the 13.6 percent increase in the average selling price per new vehicle sold. Used vehicle gross margin was 16.5 percent, a decrease of 397 basis points, primarily due to a 3.6 percent decrease in the average selling price per used vehicle sold and a 1.2 percent increase in the average cost per used vehicle sold.

Products, service and other revenue was $217.6 million, a decrease of $5.3 million, or 2.4 percent, primarily due to reduced service, collision, and warranty work. Products, service and other gross margin was 47.3 percent, a decrease of 50 basis points, primarily driven by a lower mix of higher margin service and collision revenue and increased labor rates.

Gross profit was $538.4 million, a decrease of $53.9 million, or 9.1 percent, and total gross margin was 27.8 percent, a decrease of 214 basis points. The gross profit decrease was mainly driven by the $31.2 million lower new vehicle gross profit, $21.4 million of decreased used vehicles gross profit, and $3.6 million of decreased products, service and other gross profit, partially offset by a $1.5 million increase in Good Sam Services and Plans gross profit.

Selling, general and administrative expenses (SG&A) were $410.9 million, a decrease of $26.6 million, or 6.1 percent. This decrease was primarily due to a $28.2 million decrease in employee cash compensation costs excluding commissions, resulting primarily from a headcount reduction during the second half of 2025; a $4.9 million decrease in commissions costs; and a $4.1 million decrease in stock-based compensation expense (SBC), partially offset by a $4.5 million increase in outside service provider fees primarily related to software expenses and related maintenance expenses, a $2.2 million increase in advertising expenses, and a $1.9 million increase in rent expense. SG&A excluding SBC was $406.6 million, a decrease of $22.5 million, or 5.3 percent. As a percentage of gross profit, SG&A and SG&A Excluding SBC were 76.3 percent and 75.5 percent, respectively, an increase of 245 and 306 basis points, respectively.

Floor plan interest expense of $19.9 million, a decrease of $1.1 million, or 5.4 percent, was primarily due to a 48 basis point decrease in the average floor plan borrowing rate, partially offset by a 2.1 percent increase in the average floor plan balance. The average interest rate for the company’s Floor Plan Facility for the three months ended June 30, 2026 and 2025 was 5.98 percent and 6.46 percent, respectively.

Net income was $43.7 million for the second quarter of 2026, a decrease of $13.8 million, or 24.0 percent. Adjusted EBITDA was $112.1 million, a decrease of $30.2 million, or 21.2 percent.

Diluted earnings per share of Class A common stock was 42 cents, a decrease of 6 cents, or 12.5 percent. Adjusted earnings per share were 57 cents for both the three months ended June 30, 2026 and 2025.

The total number of our store locations was 200 as of June 30, 2026, a net decrease of one store location.

RV Industry Trends
The RV Industry Association’s (RVIA) latest Summer 2026 edition of RV RoadSigns presented a 10.2 percent downward revision of its median forecast of 2026 wholesale shipments of new RVs from its previous Spring 2026 report, which would be 8.2 percent lower than 2025 new RV wholesale shipment levels.

According to Statistical Surveys, Inc. (SSI) aggregation of North American RV retail transactions, new RV registrations in the U.S. declined by 16.4 percent to 113,631 registrations for the year-to-date period ended May 31, 2026 compared to the comparable period ended May 31, 2025. Used RV registrations increased 2.4 percent to 284,744 over the same period. Additionally, SSI reported a decrease of new RV registrations in the U.S. of 15.0 percent and 19.0 percent for April and May 2026, respectively, compared to the same periods of 2025.

The above decreases in projected RV wholesale shipments and new RV registrations have been largely impacted by economic conditions and the subsequent declines in consumer sentiment year to date, likely driven by geopolitical events in the Middle East, high fuel prices, and the persistence of a high-interest-rate environment. For instance, the University of Michigan’s surveys of consumers reported decreases in the index of consumer sentiment of 6.4 percent and 18.5 percent as of June 2026 compared to December 2025 and June 2025, respectively.

Image courtesy Camping World