Camping World (CWH) Q4 2024 earnings summary

Executive summary

• Achieved record combined new and used market share of 11.2% in 2024, with expectations to reach 12% in 2025 by selling over 130,000 units, up from 121,500 in 2024.

• Fourth quarter revenue rose 8.6% year-over-year to $1.2 billion, with combined new and used same store unit sales up for the second consecutive quarter.

• Full year 2024 revenue was $6.1 billion, down 2.0% year-over-year, as new vehicle sales growth was offset by declines in used vehicles and other segments.

• Net loss for Q4 was $59.5 million, a 25.1% improvement from the prior year; full year net loss was $78.9 million, compared to net income of $52.9 million in 2023.

• Management highlighted operational improvements, cost discipline, and strong early 2025 sales momentum, especially in used units.

Financial highlights

• Q4 revenue was $1.2 billion, up 9% year-over-year, driven by 8% growth in new unit sales and 11% in used unit sales.

• Q4 new vehicle revenue increased 10.7% to $497.5 million; used vehicle revenue rose 8.2% to $348.1 million.

• Q4 gross profit grew 9.7% to $376.9 million; gross margin expanded 33 bps to 31.3%.

• Adjusted EBITDA loss of $2.5 million in Q4, improved from a loss of $8.9 million last year; full year Adjusted EBITDA fell 37.5% to $178.8 million.

• Ended Q4 with $288 million in cash, $339 million in used inventory (net of flooring), $166 million in parts inventory, and $169 million in unencumbered real estate.

Outlook and guidance

• Reaffirmed guideposts for 2025: 10%-15% unit growth on used, low single-digit growth on new, significant gross profit improvement, and 600-700 basis point SG&A improvement.

• Management expects more stable industry trends and continued operational improvement in 2025, with early Q1 same store used unit sales up high-teens percent year-over-year and new units up low-single digits.

• Expecting explosive EBITDA growth in Q1 2025, targeting 3-4x last year's Q1 EBITDA.

• Forecasting 13.5%-14% gross margin on new and over 19% on used for 2025.

• Plan to add at least 6-7 dealerships in 2025, with a disciplined approach to capital allocation.