Camping World (CWH) Q3 2024 earnings summary

Executive summary

• Achieved record new unit market share and outperformed the broader RV industry, with strong growth in Good Sam and service/parts businesses year-over-year.

• Combined new and used same store unit sales returned to positive growth for the first time in 10 quarters, with a 29% year-over-year increase in same store new unit sales.

• Focused on three growth drivers: dealership acquisitions, exclusive product offerings, and market-making capabilities in the RV sector.

• Good Sam business review concluded with a decision to retain and empower the segment for independent growth, supporting future dealership M&A and organic growth.

• The company operated 207 locations as of September 30, 2024.

Financial highlights

• Q3 2024 revenue was $1.72 billion, down 0.3% year-over-year; new vehicle revenue rose 21.5% while used vehicle revenue fell 24.2%.

• Net income attributable to Camping World Holdings, Inc. was $5.5 million, a 65.5% decrease year-over-year; Adjusted EBITDA was $67.5 million, down 28.9%.

• Gross profit for Q3 2024 was $498.5 million, a 4.7% decrease year-over-year; total gross margin was 28.9%, down 134 basis points.

• Diluted EPS was $0.09, down 71.9%; Adjusted EPS-diluted was $0.13, down 66.7%.

• Cash provided by operating activities for the nine months ended September 30, 2024 was $408.5 million.

Outlook and guidance

• Used unit volume is expected to recover by low double digits in 2025 as inventory procurement normalizes, with modest growth in new units.

• Average selling prices and vehicle gross margins are projected to increase modestly year-over-year, with gross margins returning to historical ranges.

• SG&A as a percentage of gross profit expected to improve by 600-700 basis points in 2025, targeting 77-78% (down from 85% in 2024).

• Expansion plans include $75–$115 million in dealership acquisitions and capital expenditures over the next twelve months.

• Management believes liquidity and capital resources are sufficient for at least the next twelve months, but notes macroeconomic uncertainty could impact future financing.