Camping World Holdings, Inc., the largest retailer of RVs and camping gear in the United States, has announced strong financial results for the full year and fourth quarter ended December 31, 2022.
The company reported a revenue of $7.0 billion for the year, an increase of $53.3 million or 0.8% compared to the previous year, with used vehicle revenue reaching a record $1.9 billion, an increase of $191.4 million or 11.3%.
However, the company’s gross profit for the year decreased by $194.0 million or 7.9%, while net income dropped by $291.0 million or 45.3% compared to the previous year.
The decline was primarily due to the higher cost of new vehicles, which led to a 306 basis point decrease in the total gross margin, and a rise in floor plan interest expenses.
In light of the short-term softening of demand and new vehicle margin compression, Marcus Lemonis, the Chairman and CEO of Camping World Holdings, announced that the company will be implementing aggressive annualized cost reductions, including reduced headcount, the elimination or reduction of underperforming assets and locations, and business lines, while enhancing the wages and benefits of their employees.
Despite the challenging environment, Camping World Holdings remains confident in the long-term prospects of its business. The company opened 14 dealership locations and increased its new and used vehicle inventories by $360.1 million to restock to normalized levels of new vehicles and strategically grow their used vehicle business.
In the fourth quarter, Camping World Holdings reported a revenue of $1.3 billion, a decrease of $97.3 million or 7.1% compared to the previous year, with used vehicle revenue reaching $392.6 million, a decrease of $19.7 million or 4.8%. The decline was primarily due to the higher cost of new vehicles and lower average selling prices.
The company’s gross profit for the quarter also decreased by $93.0 million or 19.2%, while net loss was $57.2 million, a decrease of income of $116.5 million or 196.5% compared to the previous year.
Camping World Holdings expects the conversion of certain subsidiaries to limited liability companies to reduce ongoing income tax expenses and tax distribution requirements.
Overall, Camping World Holdings has faced a challenging year, but remains optimistic about its long-term prospects. The company’s aggressive annualized cost reductions and strategic growth plans are expected to help mitigate the impact of the current environment and position the company for future success.
About Camping World Holdings, Inc.
Camping World Holdings, Inc., headquartered in Lincolnshire, IL, is the largest retailer of RVs and related products and services in the United States. The company’s vision is to create a business that establishes a lasting legacy of making RVing fun and easy.
Since 1966, the Camping World and Good Sam brands have been catering to the needs of RV consumers. Camping World aims to provide long-term value to its customers, employees, and shareholders by offering a vast array of RV products and services, a national network of RV dealerships, service centers, and customer support centers, as well as a strong online presence.
Isn’t it intriguing that Camping World Holdings Inc. is exploring partnerships to boost their outdoor and RV industry position? They’re diving into digital initiatives too, aiming to connect with customers and grow online sales. Shows they’re on top of trends and focused on customer needs!
I think Camping World Holdings Inc.’s focus on boosting employee benefits and plans for more dealerships and inventory expansion show a smart strategy for long-term success and meeting customer demand.