Defying the broader trends in the RV industry, Camping World Holdings, Inc. reported a significant surge in new vehicle sales for the first quarter of 2024. Despite a general downturn in the industry, Camping World achieved a 16% rise in same-store new vehicle unit volume.
This unexpected growth, outlined in a recent press release by the company, has positioned Camping World as one of the strong players in the market, achieving record-breaking new unit market share.
Camping World attributes this success to a strategic focus on affordability. By intentionally lowering invoice pricing and broadening the range of options accessible to consumers, the company has effectively stimulated demand and outperformed industry expectations.
This approach has yielded impressive results, with same-store new vehicle unit volume experiencing a double-digit increase during the first quarter, a trend that has continued into April.
Chairman and CEO Marcus Lemonis commented, “Our intentional efforts to drive down invoice pricing and widen the consumer affordability funnel resulted in our new unit sales meaningfully outpacing broader RV industry trends,” he said.
“We drove record new unit market share for January and February. Our same-store new vehicle unit volume increased double-digits in the quarter, with momentum continuing through April,” Lemonis added.
The company’s first-quarter operating highlights further underscore its strong performance. The total number of store locations increased by 20 to 215 compared to the previous year.
While overall revenue dipped 8.3% to $1.4 billion (a decrease of $122.9 million), new vehicle revenue rose 1.4% to $656.1 million on a 21.3% jump in new vehicle unit sales to 16,882. Same-store new vehicle unit sales surged 15.5%.
However, used vehicle revenue declined 24.1% to $337.7 million as unit sales fell 14% to 10,694 and same-store unit sales dropped 17.3%.
The company actively reduced used vehicle prices to maintain their appeal compared to lower-priced new 2024 models. This resulted in an 11.7% decline in the average selling price of used vehicles.
Gross profit for the quarter was $402.4 million, a decrease of 8.8% compared to the previous year. The total gross margin saw a slight decline of 16 basis points to 29.5%. These decreases, according to the press release, were primarily driven by the lower average cost and selling price of model year 2024 new vehicles, which also impacted used vehicle pricing and inventory levels.
Used Vehicle Market Rebalancing
While the used vehicle market has seen a decline in both revenue and unit sales, Camping World remains optimistic about its future performance. The company has successfully rebalanced its used inventory position and, with market pricing stabilizing, plans to strategically rebuild its stocking levels in the coming months.
Chief Operating Officer Matt Wagner added, “We have been successful in rebalancing our used inventory position and now that market pricing has stabilized, we intend to reinvest in building our stocking levels in a disciplined manner over the coming months. We continue to expect our used business to improve as we move through the balance of the year.”
Positive Outlook for the Future
With strong momentum in new unit volume and a dominant inventory position, Camping World is confident in its ability to achieve its goals for 2024.
The company remains focused on driving unit volume, expanding market share, and achieving earnings growth, while continuing its strategic expansion plan to reach 320 locations by 2028.
