Profits at Camping World Holdings Inc. fell 67.3 percent in the second quarter ended June 30 as sales declined 12.4 percent.

Marcus Lemonis, chairman and chief executive officer of Camping World Holdings, Inc. stated, “We sold the most used units in our company’s history, with record-setting used vehicle gross profit. We’ve opened, acquired, or signed letters of intent on 30 dealership locations year-to-date. The unprecedented influx of acquisition opportunities has continued and the pipeline is robust. We plan to capitalize on it as we invest ahead of anticipated revenue growth in 2024 and beyond.”

Second Quarter-over-Quarter Operating Highlights

  • Revenue was $1.9 billion for the second quarter, a decrease of $267.9 million, or 12.4 percent.
  • Used vehicle revenue was a record $623.0 million for the second quarter, an increase of $67.0 million, or 12.1 percent, and used vehicle unit sales were a record 17,774 units, an increase of 2,219 units, or 14.3 percent.
  • New vehicle revenue was $800.9 million for the second quarter, a decline of $276.3 million, or 25.7 percent, and new vehicle unit sales were 18,897 units, a decrease of 4,507 units, or 19.3 percent.
  • Products, service and other revenue was $247.8 million for the second quarter, a decline of $30.2 million, or 10.9 percent. The decrease was driven by declines in our direct-to-manufacturer RV furniture revenues due to manufacturer shutdowns, our Active Sports Restructuring, and discounting to reduce inventory levels.
  • Same-store used vehicle unit sales increased 8.8 percent for the second quarter, and same-store new vehicle unit sales decreased 23.7 percent.
  • Gross profit was $571.1 million, a decrease of $145.7 million, or 20.3 percent. Total gross margin was 30.0 percent, a decrease of 301 basis points. The decrease in gross profit was driven largely by the decrease in new vehicle revenue and related finance and insurance revenue. The decrease in gross margin was primarily the result of lower average selling prices of new vehicles, which was partially offset by the increased sales mix of higher-margin used vehicles.
  • Floor plan interest expense was $20.7 million, an increase of $11.9 million, or 136.7 percent, primarily as a result of the rise in interest rates. Other interest expense, net was $33.5 million, an increase of $18.6 million, or 124.4 percent, primarily as a result of the rise in interest rates and a higher average principal balance.
  • Net income was $64.7 million, a decrease of $133.3 million, or 67.3 percent, driven primarily by the pretax $101.6 million decrease in new vehicle gross profit, the $28.5 million decrease in finance and insurance gross profit on fewer vehicles sold, the $18.6 million increase in other interest expense, net, and the $11.9 million increase in floor plan interest, which was partially offset from the $20.2 million decrease in selling, general, and administrative expenses and lower income tax expense from these net reductions of pretax income.
  • Diluted earnings per share of Class A common stock was $0.64 in 2023 versus diluted earnings per share of Class A common stock of $2.01 in 2022. Adjusted earnings per share – diluted(1) of Class A common stock was $0.73 in 2023 versus adjusted earnings per share – diluted(1) of Class A common stock of $2.16 in 2022.
  • Adjusted EBITDA was $139.3 million, a decrease of $138.4 million, or 49.8 percent, driven primarily by the $101.6 million decrease in new vehicle gross profit, the $28.5 million decrease in finance and insurance gross profit on fewer vehicles sold, and the $11.9 million increase in floor plan interest, which was partially offset from the $20.2 million decrease in selling, general, and administrative expenses.

Photo courtesy Camping World