Camping World (CWH) Q3 2024 earnings summary

Executive summary

• Achieved record market share and continued strength in the Good Sam business, outperforming RV industry headwinds and improving year-over-year in service and parts.

• Combined new and used same store unit sales returned to positive growth for the first time in 10 quarters, with record new unit market share and strong October trends.

• Grew to over 200 dealership locations with a clear path to 320, leveraging acquisitions and diversified formats including auctions and consignment.

• Nearly 36% of new unit sales are exclusive contract-manufactured RVs, driving innovation and value.

• Good Sam business review concluded with a decision to retain and empower the segment for independent growth, with plans to expand into marine, powersports, and auto markets.

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, down 65.5% 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.

• SG&A as a percentage of gross profit projected to improve by 600-700 basis points, targeting 77-78% in 2025, with a long-term goal in the low 70s%.

• Anticipate modest year-over-year increases in new unit sales and average selling prices, with gross margins within historical ranges.

• 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.