Camping World Holdings (CWH), a company in the recreational vehicle (RV) retail space, recently announced its financial results for the third quarter of 2024. For the period ending September 30, the company recorded a revenue of $1.7 billion, marking a slight decrease of $4.6 million, or 0.3%.
CEO Marcus Lemonis emphasized the strategic gains in both new and used unit sales. According to Lemonis, this quarter is the first time in 10 quarters that combined same-store unit sales have shown positive growth.
Additionally, the CEO noted strong performance in October, with used unit volumes steady year-over-year and new unit volumes continuing their upward trend. This momentum, he believes, positions the company for further growth heading into 2025, particularly as new units remain a central focus for driving sales.
President Matt Wagner shared insights on CWH’s inventory strategy, which has been a cornerstone of their approach to sustaining market leadership. He explained that the company’s disciplined stance on inventory management is expected to pay off in the coming year.
“We see average selling prices modestly increasing year-over-year, with vehicle gross margins within our historical range and SG&A as a percentage of gross profit improving by mid to high single digits,” he said in a press release.
Lemonis further underscored the role of CWH’s Good Sam and fixed operations businesses in driving stability across business cycles. He described these segments as crucial differentiators for the company, enabling sustained growth regardless of market fluctuations.
As CWH looks to the future, Lemonis expressed confidence that the company’s momentum positions it well for both dealership acquisitions and organic growth, signaling a strong outlook for 2025 and beyond.
In terms of quarterly performance, new vehicle revenue reached $824.9 million, reflecting an increase of $145.7 million, or 21.5%, compared to the previous year. On the other hand, used vehicle revenue declined by 24.2% to $447.2 million, with unit sales down 17.9% to 14,065 units, a trend partially influenced by inventory decisions and pricing adjustments in response to shifts in the new vehicle market.
In terms of pricing trends, the average selling price for new vehicles dropped by 7.4% as CWH implemented discounts to clear older inventory and adjust prices for 2024 model travel trailers. Similarly, used vehicles saw a 7.7% decline in average selling price. Overall, same-store new vehicle unit sales rose by 28.8%, although same-store used unit sales declined by 20.5%, leading to a 2.3% increase in combined same-store new and used vehicle sales.
The company’s products, services, and other revenue amounted to $224.8 million, down 4.6% from the same quarter last year. Despite this reduction, CWH’s gross profit for the quarter was $498.5 million, a decline of 4.7% or $24.6 million, with the gross margin slipping to 28.9% as a result of the lower average selling prices across both new and used vehicles.
Selling, general, and administrative (SG&A) expenses stood at $414.2 million, representing a slight decrease of 0.3%, driven by reductions in employee compensation and rent expenses. However, these savings were offset by increased advertising expenditures and fees for external service providers.
Net income for the third quarter totaled $8.1 million, reflecting a 73.9% year-over-year decrease, largely due to a drop in gross profit. Additionally, Adjusted EBITDA decreased by 28.9% to $67.5 million.
