Lower Q1 Revenue and Missed EPS Estimates for Camping World

Lower Q1 LINCOLNSHIRE – America’s Recreation Dealer, Camping World Holdings, Inc. (NYSE: NYSE:CWH), released its financial results for the first quarter that concluded on March 31, 2024. The company’s reported Q1 adjusted EPS of -$0.40 fell short of the -$0.36 analyst forecast. The company’s quarter-end sales of $1.36 billion was less than the $1.43 billion average projection.

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The company experienced a difficult period as evidenced by the 8.3% drop in revenue from the same quarter the previous year. New car revenue increased by 1.4% to $656.1 million, despite the total revenue decline. Unit sales increased by 21.3%, which is indicative of the company’s strategic initiatives to lower invoice pricing and boost consumer affordability. Chairman and Chief Executive Officer Marcus Lemonish credited the rise in new unit sales to the company’s deliberate efforts that “meaningfully outpaced broader RV industry trends.”

Nevertheless, used car income did not fare as well, falling by 14.0% in unit sales and a substantial 24.1% to $337.7 million. New car sales declined 16.4% on average, mostly as a result of a mix shift toward more economical travel trailers and older model discounts. In a similar vein, used car sales averages dropped by 11.7%.

Along with an 8.8% decline in gross profit to $402.4 million, the overall gross margin had a 16 basis point decline to 29.5%. However, despite a considerable rise in store locations of 10.3% to a total of 215, selling, general, and administrative expenses grew by 1.6% to $371.5 million.

The significant $50.8 million financial loss for the quarter stands in sharp contrast to the $4.9 million net income recorded in the first quarter of 2023. In the first quarter of 2024, the diluted loss per share of Class A common stock was -$0.51, whereas the diluted earnings per share for the same period in the previous year was $0.05.

The major decline of 86.5% in adjusted EBITDA, $8.2 million, was primarily brought about by a decline in gross profit, an increase in floor plan interest, and an increase in selling, general, and administrative costs.

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Camping World is confident about its success going forward, despite the difficulties it had in the first quarter. Lemonish said, “With significant new unit volume momentum and a dominant inventory position, we believe we have laid the groundwork for improving fundamentals going forward.”

The business did not release any detailed forecast for the next quarters or fiscal year, and there was no accessible analyst consensus to compare future guidance with. Furthermore, no stock movement percentage was given to show how the market responded to the earnings announcement.

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