Lazydays (LAZY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 22.6% year-over-year to $238.7M, with a net loss of $44.2M versus net income of $3.6M in Q2 2023.

• Management implemented cost reduction actions, including dealership closures and consolidations, targeting $25M–$30M in annual savings.

• The anticipated industry recovery in 2024 has not materialized; most experts now point to 2025 for a meaningful rebound.

• Company faced significant industry headwinds, including RV market slowdown, heavy discounting, and consumer uncertainty.

• Focus remains on inventory health, F&I per unit, and gross margin improvement.

Financial highlights

• Q2 2024 total revenue: $238.7M, down from $308.4M in Q2 2023; six-month revenue: $509.3M, down 15.7% year-over-year.

• Q2 adjusted net loss was $18.4M (vs. adjusted net income of $3.9M in Q2 2023); adjusted net loss per share was $1.42 (vs. $0.14 income per share in Q2 2023).

• Gross profit margin for Q2 2024 fell to 19.9% from 22.0% year-over-year; six-month margin dropped to 16.7% from 21.8%.

• Gross profit per new unit (ex-LIFO) fell 48.6% year-over-year but increased over 200% sequentially to $6,552.

• Gross profit per used unit increased more than 150% sequentially to $10,075.

Outlook and guidance

• Management expects continued industry softness and uncertainty regarding timing of recovery, now anticipated in 2025.

• Q3 is expected to follow a similar trajectory to Q2, with no significant improvement anticipated.

• Focus remains on cost control, inventory management, and seeking additional liquidity.